First Time Buyer
Discussion
Hi Guys
Not sure if this is the correct place to post this question, but I think you guys will have a better understanding of the financial and property market.
I am just looking for some advice, I am in a position now where I can probably buy my first property. Although there is a lot of market uncertainty and reports of prices dropping, I thought now might be a good time to make an offer on a few places to see if the owners would be prepared to take them.
In my search for a property though I have found a new build in the town center that has a great 2 bed flat with stunning views. It is up for 258k, and they won't budge. They have however told me about a scheme they have just introduced in which the government will help local first time buyers purchase in the area - they will pay 50% and own 50% of the property (not shared ownership, no rent to be paid on their 50%) but after the third year you start to pay 3% interest on their contribution, up until then it's 0%. I believe the organization name is Moat or something.
This scheme makes it it very affordable for me and a great opportunity to move out, but my concern is the market - would you recommend going for this, or waiting and hoping a similar opportunity arises in future, if the properties drop?
Thanks for any advice, apologies again if this is not the best forum for this question!
Not sure if this is the correct place to post this question, but I think you guys will have a better understanding of the financial and property market.
I am just looking for some advice, I am in a position now where I can probably buy my first property. Although there is a lot of market uncertainty and reports of prices dropping, I thought now might be a good time to make an offer on a few places to see if the owners would be prepared to take them.
In my search for a property though I have found a new build in the town center that has a great 2 bed flat with stunning views. It is up for 258k, and they won't budge. They have however told me about a scheme they have just introduced in which the government will help local first time buyers purchase in the area - they will pay 50% and own 50% of the property (not shared ownership, no rent to be paid on their 50%) but after the third year you start to pay 3% interest on their contribution, up until then it's 0%. I believe the organization name is Moat or something.
This scheme makes it it very affordable for me and a great opportunity to move out, but my concern is the market - would you recommend going for this, or waiting and hoping a similar opportunity arises in future, if the properties drop?
Thanks for any advice, apologies again if this is not the best forum for this question!
craigdb said:
Hi Guys
Not sure if this is the correct place to post this question, but I think you guys will have a better understanding of the financial and property market.
I am just looking for some advice, I am in a position now where I can probably buy my first property. Although there is a lot of market uncertainty and reports of prices dropping, I thought now might be a good time to make an offer on a few places to see if the owners would be prepared to take them.
In my search for a property though I have found a new build in the town center that has a great 2 bed flat with stunning views. It is up for 258k, and they won't budge. They have however told me about a scheme they have just introduced in which the government will help local first time buyers purchase in the area - they will pay 50% and own 50% of the property (not shared ownership, no rent to be paid on their 50%) but after the third year you start to pay 3% interest on their contribution, up until then it's 0%. I believe the organization name is Moat or something.
This scheme makes it it very affordable for me and a great opportunity to move out, but my concern is the market - would you recommend going for this, or waiting and hoping a similar opportunity arises in future, if the properties drop?
Thanks for any advice, apologies again if this is not the best forum for this question!
Craig,Not sure if this is the correct place to post this question, but I think you guys will have a better understanding of the financial and property market.
I am just looking for some advice, I am in a position now where I can probably buy my first property. Although there is a lot of market uncertainty and reports of prices dropping, I thought now might be a good time to make an offer on a few places to see if the owners would be prepared to take them.
In my search for a property though I have found a new build in the town center that has a great 2 bed flat with stunning views. It is up for 258k, and they won't budge. They have however told me about a scheme they have just introduced in which the government will help local first time buyers purchase in the area - they will pay 50% and own 50% of the property (not shared ownership, no rent to be paid on their 50%) but after the third year you start to pay 3% interest on their contribution, up until then it's 0%. I believe the organization name is Moat or something.
This scheme makes it it very affordable for me and a great opportunity to move out, but my concern is the market - would you recommend going for this, or waiting and hoping a similar opportunity arises in future, if the properties drop?
Thanks for any advice, apologies again if this is not the best forum for this question!
There has been much discussion on here
http://www.pistonheads.co.uk/gassing/topic.asp?h=0...
While people are probably split 50/50 on whether average property prices are going to fall over the next 3-5 years, they are a lot less optimistic on new build flats in town centres (not sure of your location)
Moat are a housing association, based near Dartford. Depending on how many of the properties they have taken on you could find your self with a really nice development, or a shedload of pikeys.
£258k is a shit price..... £250 is the point at which your stamp duty goes from 1 to 3%, so the stamp on the flat would be £7,740, at £250k it would be £2500. The developer may be paying that, or you might. Moat won't be.
New build flats, as Noel's thread points out, are toxic at the moment, lenders don't like them, therefore they will do all they can to avoid lending on them, especially in shared ownership scenarios.
Do you fit the shared ownership criteria?
Can you staircase moats portion of the flat (i.e buy extra bits of their 50%) if so at what price, is it set now,or at market value in the future.
If there is a gain, you and Moat will share the profit. IF there is a loss, is the scenario the same, or will you shoulder all the loss?
Would I be buying a shared ownership new build???
No thanks.
EFA Top lurking by the way.
£258k is a shit price..... £250 is the point at which your stamp duty goes from 1 to 3%, so the stamp on the flat would be £7,740, at £250k it would be £2500. The developer may be paying that, or you might. Moat won't be.
New build flats, as Noel's thread points out, are toxic at the moment, lenders don't like them, therefore they will do all they can to avoid lending on them, especially in shared ownership scenarios.
Do you fit the shared ownership criteria?
Can you staircase moats portion of the flat (i.e buy extra bits of their 50%) if so at what price, is it set now,or at market value in the future.
If there is a gain, you and Moat will share the profit. IF there is a loss, is the scenario the same, or will you shoulder all the loss?
Would I be buying a shared ownership new build???
No thanks.
EFA Top lurking by the way.
Edited by scotal on Monday 7th January 15:42
I would have to agree with Noel, that 2 bed new builds are likely to drop more than any other.
On top of that you will have ground rent ( would guess at least £600/yr)and neighbours pretty much all around you.
In your price range I am sure there are several houses, some may need work doing to them but then in 5 years chances are a new build will show signs of age....and they have paper thin walls.
I don't expect a huge crash. ...but I am not including new build flats in my prediction.
On top of that you will have ground rent ( would guess at least £600/yr)and neighbours pretty much all around you.
In your price range I am sure there are several houses, some may need work doing to them but then in 5 years chances are a new build will show signs of age....and they have paper thin walls.
I don't expect a huge crash. ...but I am not including new build flats in my prediction.
Edited by M400 NBL on Monday 7th January 16:28
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