Part buy/Part rent housing - any ideas?
Discussion
Hi guy's,
My girlfriend is looking to get her own place and after speaking to a mortgage adviser today buying out-right doesn't look like an option.
I've heard of these buy half rent half schemes whith which you can buy more when your income goes up etc. but after searching the internet can't seem to find anything out other than that it exists!
Looked at the local housing association and to me it reads that it only applicable to pregnant teenagers and work shy chavvy types.
Any ideas who would be best to contact to find property in our area (Birmingham / West Bromwich)?
And also how the hell are people supposed to get on the property ladder?? unless you earn about £35K you seem to be screwed!!
Cheers
Chris
My girlfriend is looking to get her own place and after speaking to a mortgage adviser today buying out-right doesn't look like an option.
I've heard of these buy half rent half schemes whith which you can buy more when your income goes up etc. but after searching the internet can't seem to find anything out other than that it exists!
Looked at the local housing association and to me it reads that it only applicable to pregnant teenagers and work shy chavvy types.
Any ideas who would be best to contact to find property in our area (Birmingham / West Bromwich)?
And also how the hell are people supposed to get on the property ladder?? unless you earn about £35K you seem to be screwed!!
Cheers
Chris
They're ususally offered by independent Housing Associations; each one having a different segment of the community they are looking to assist. There are some that concentrate on single low-waged people but there is a fairly high demand for single person accommodation and the acceptance criteria is typically quite rigid. She may be in for a long wait, unless she falls into some special criteria, such as trainee nurse or similar 'key' worker.
Your local authority should be able to provide a list of HA's in your area. If not Yellow Pages usually has a comprehensive list.
Your local authority should be able to provide a list of HA's in your area. If not Yellow Pages usually has a comprehensive list.
I've been down this road myself lately,there are schemes that exist but ~IMHO your GF will be much better saving to buy a flat or maisonette etc.
The rent part is lower than the mortagage prt but not buy enough and these schemes seem to exclude all but essential workers and chavs and the desperate
Plus selling on in future can in some schemes be difficult as they have to be offered to other needy people first, so selling could take alot of time
All imho
The rent part is lower than the mortagage prt but not buy enough and these schemes seem to exclude all but essential workers and chavs and the desperate
Plus selling on in future can in some schemes be difficult as they have to be offered to other needy people first, so selling could take alot of time
All imho
My daughter and her boyfriend had one of these for a couple of years, but they have at last managed to buy their own place now.
They are a good idea, but has mentioned, selling on is difficult.
The housing association were just not geared up for selling on!
It took months to finalise the sale!!
They are a good idea, but has mentioned, selling on is difficult.
The housing association were just not geared up for selling on!
It took months to finalise the sale!!
I would avoid these like the plague. The housing market is about to fall over under its own weight anyway, and anyone who tells you otherwise has a vested interest in prices staying high.
Salary-wise I am knocking on the doors of the 40% income tax bracket. This makes me a 'high-earner'. As a property non-owner, if I wanted to buy within reasonable distance of where I work (Aldershot), on sensible income multiples, I could afford a shoebox in a reasonable area, or perhaps somewhere a little more 'deceptively spacious' within easy strolling distance of the local crack den.
For roughly the same money as a mortgage (at average standard rates, not the recent abnormally low rates), insurance and maintenance on one of these would cost, I am moving into a country cottage next month - rented. I will be surrounded by woods and fields instead of chavs ripping off my wing mirrors. This one was certainly a no-brainer for me.
Purchase prices got well out of kilter with earnings long ago. First time buyers have been largely out of the running for some time, buy-to-let landlords ramped things up further. That has had the effect of flooding the lettings market and keeping rents low, so that it has got to the stage now where the market rent won't cover the BTL mortgage interest. And the capital value growth isn't happening any more now either. Prices have been falling since last July, so BTL is pretty much a junk investment.
There was a time not so long ago when I wanted to jump on to the property ladder but I was never in a position to. Right now, I am not touching it with a barge-pole. Long-term, buying a house is a good investment provided you get your timing right. Get it wrong and it will really cost you big time. If you fall into negative equity you WILL be trapped - the bank will not allow you to sell unless you can pay the shortfall.
These things are cyclical. No asset class has ever gone though such a long, sustained boom and then plateaued. House prices have never been so high in relation to earnings, the graph is flippin' scary. The market is in stalemate now - nobody is coming in at the bottom of the chains because most cannot pay the asking prices. The majority of those that still can are unsurprisingly telling Wayne and Waynetta to f
off, why should we pay 140k for something you paid 45k for 6 years ago?
Sorry if this turned into a bit of a rant but I feel strongly about this, I really cannot see how this market can be further sustained. If I can cause one person to stop and think, rather than being hoodwinked by banks, estate agents, the laughingly irresponsible duo of Krusty Allslop and that jug-eared tt, into entering the housing market regardless of cost and financial circumstance, then I feel I will have achieved something.
Salary-wise I am knocking on the doors of the 40% income tax bracket. This makes me a 'high-earner'. As a property non-owner, if I wanted to buy within reasonable distance of where I work (Aldershot), on sensible income multiples, I could afford a shoebox in a reasonable area, or perhaps somewhere a little more 'deceptively spacious' within easy strolling distance of the local crack den.
For roughly the same money as a mortgage (at average standard rates, not the recent abnormally low rates), insurance and maintenance on one of these would cost, I am moving into a country cottage next month - rented. I will be surrounded by woods and fields instead of chavs ripping off my wing mirrors. This one was certainly a no-brainer for me.
Purchase prices got well out of kilter with earnings long ago. First time buyers have been largely out of the running for some time, buy-to-let landlords ramped things up further. That has had the effect of flooding the lettings market and keeping rents low, so that it has got to the stage now where the market rent won't cover the BTL mortgage interest. And the capital value growth isn't happening any more now either. Prices have been falling since last July, so BTL is pretty much a junk investment.
There was a time not so long ago when I wanted to jump on to the property ladder but I was never in a position to. Right now, I am not touching it with a barge-pole. Long-term, buying a house is a good investment provided you get your timing right. Get it wrong and it will really cost you big time. If you fall into negative equity you WILL be trapped - the bank will not allow you to sell unless you can pay the shortfall.
These things are cyclical. No asset class has ever gone though such a long, sustained boom and then plateaued. House prices have never been so high in relation to earnings, the graph is flippin' scary. The market is in stalemate now - nobody is coming in at the bottom of the chains because most cannot pay the asking prices. The majority of those that still can are unsurprisingly telling Wayne and Waynetta to f
off, why should we pay 140k for something you paid 45k for 6 years ago? Sorry if this turned into a bit of a rant but I feel strongly about this, I really cannot see how this market can be further sustained. If I can cause one person to stop and think, rather than being hoodwinked by banks, estate agents, the laughingly irresponsible duo of Krusty Allslop and that jug-eared t
t, into entering the housing market regardless of cost and financial circumstance, then I feel I will have achieved something.I don't think the property market will fall over, there are too many wanting homes. The sad fact is that too many now want to live alone, when I first bought a home it was with my fiance , now wife and there were very few who bought to live alone. This is now sadly no longer true.
As for Buy to let, we have three homes two of which are rented to the local authority onw privatly, without people like us there would be more homeless although yes the prices have risen due to some seeing it as easy money which it is not.
but the main reason people do not get on the property market is that no one saves anymore. When I was getting married in 1980 I was earning 78p per hour as a mechanic in South yorkshire but i had to save £1000 to get a mortgage of a further £12k, it was hard but because I had not spent everything I earnt since starting work in 1974 i had some. we bought a house we could afford did it up and moved on, today people want the cottage or contempery flat as seen on tv as their first home. I guy at work moans constantly how he cannot afford a house yet he has two holidays abroard each year, spends on his car thousands on Chav mods, and on computer games. He will never have a house until his dad dies and gives him his house. There are homes for every income but not the ones people are willing to live in these days
As for Buy to let, we have three homes two of which are rented to the local authority onw privatly, without people like us there would be more homeless although yes the prices have risen due to some seeing it as easy money which it is not.
but the main reason people do not get on the property market is that no one saves anymore. When I was getting married in 1980 I was earning 78p per hour as a mechanic in South yorkshire but i had to save £1000 to get a mortgage of a further £12k, it was hard but because I had not spent everything I earnt since starting work in 1974 i had some. we bought a house we could afford did it up and moved on, today people want the cottage or contempery flat as seen on tv as their first home. I guy at work moans constantly how he cannot afford a house yet he has two holidays abroard each year, spends on his car thousands on Chav mods, and on computer games. He will never have a house until his dad dies and gives him his house. There are homes for every income but not the ones people are willing to live in these days
spaximus said:
I don't think the property market will fall over, there are too many wanting homes. The sad fact is that too many now want to live alone, when I first bought a home it was with my fiance , now wife and there were very few who bought to live alone. This is now sadly no longer true.
As for Buy to let, we have three homes two of which are rented to the local authority onw privatly, without people like us there would be more homeless although yes the prices have risen due to some seeing it as easy money which it is not.
but the main reason people do not get on the property market is that no one saves anymore. When I was getting married in 1980 I was earning 78p per hour as a mechanic in South yorkshire but i had to save £1000 to get a mortgage of a further £12k, it was hard but because I had not spent everything I earnt since starting work in 1974 i had some. we bought a house we could afford did it up and moved on, today people want the cottage or contempery flat as seen on tv as their first home. I guy at work moans constantly how he cannot afford a house yet he has two holidays abroard each year, spends on his car thousands on Chav mods, and on computer games. He will never have a house until his dad dies and gives him his house. There are homes for every income but not the ones people are willing to live in these days
I think that sums up the situation perfectly.
The first house I bought in 1976 was under a slum clearance order and it took a hell of a lot of work to put right.
If some people want to rent all their lives and pay for their landlords holidays, then that's fine.
Just not for me.
gtr-gaz said:
They are a good idea, but has mentioned, selling on is difficult.
The housing association were just not geared up for selling on!
It took months to finalise the sale!!
I have a shared ownership property at the moment. I disaagree with the selling aspect as in the past 6 months two have my neighbours have sold within one day. This at a higher price than surrounding properties. It depends on the Housing Assoc and solicitor with regards finalising as IIRC there is more paperwork.
Our local H/A doesn't seem to have any critea at the moment with regards people who can buy SO though!
Also as finances permit you can buy out the Housing Association.
zetec said:
They are a good idea, but has mentioned, selling on is difficult.
The housing association were just not geared up for selling on!
It took months to finalise the sale!!
I have a shared ownership property at the moment. I disaagree with the selling aspect as in the past 6 months two have my neighbours have sold within one day. This at a higher price than surrounding properties. It depends on the Housing Assoc and solicitor with regards finalising as IIRC there is more paperwork.
Our local H/A doesn't seem to have any critea at the moment with regards people who can buy SO though!
Also as finances permit you can buy out the Housing Association.
Thanks for the info guys!
Zetec - how does the 'part ownership' work? What sort of rights do you have with the property and what are the limitations on decoration etc and whats the likelyhood of them coming back and saying 'we want to sell the house on'.
Cheers
Chris
With regards to decorations we are free to do as we please, think of the HA as a sleeping partner. The rent we pay to the HA covers buildings insurance so any major problems will be taken care of.
With regards the HA wanting the house back, then they will have to buy out your share at market price, likewise you can buy out the HA.
If you want any more info feel free to e mail me through my profile.
HTH.
With regards the HA wanting the house back, then they will have to buy out your share at market price, likewise you can buy out the HA.
If you want any more info feel free to e mail me through my profile.
HTH.
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