Quote from: Eggtastico

Quote from: BaconThe councils do a scheme where you buy half the house, or so. Its a % around that figure, so in essence you pay half as much.

I might not be spot on, but it works something like this.

they called starter homes & TBH its a bad Idea.

If I paid £200k for a new build, then I wouldnt be happy if the c**t next door paid £100k for an identical house, just because they are a first time buyer.

Simple.. you save or you live in a caravan.

They dont pay half and get the same house. They pay half and own half the house. You paid £200k and own the entire house. Its quite a good idea.

Quote from: M3ta7h3ad

Quote from: DaveIf property now only rises at a rate below inflation or stagnates & the cost of renting is the same or less than the interest portion of a mortgage then it can easily be more beneficial to rent and save the equivalent amount youd be using for repayments in a savings account.

How is that any different to renting?

Advantage with it being that you own a home, its yours to do with as you want and would probably have benefits in terms of credit scoring as well.

actually typed that too quickly and should have expanded a bit - if renting is less than it can be more beneficial & this is still assuming property rises in line with inflation or staying the same - a drop in property prices and the renter is not just getting a small benefit in the form of lower payments each month with no net opportunity loss in the future but is making a profit (assuming they owned first) buy selling-renting then buying - pretty much what mark is doing

For people with the means to do either renting is a short position, buying is a long position & I guess you could also go for a more market neutral strategy too (perhaps the most intelligent position tbh..)- i.e. suppose you live in Manchester & you decide the property market in central Manchester is over-inflated so you choose to sell you 500k apartment there & rent a similar one back whereas you see say Cardiff as still in a bull phase so you buy & lease say two 250k apartments there. Property market in the UK as a whole dips and youre not overly concerned as when you do come to buy in Manchester you can get a lot more for your money than when you started renting there. As long as Cardiff property rises quicker than Manchester property or, if the UK market as a whole dipps - Manchester property to fall more than Cardiff property youll be in the money. Youre not really exposed to the market as a whole and are less concerned with whether the market as a whole rises or falls - youre just concerned with the relative rises or falls between two local markets.  Not too different to a pairs trade in equities tbh...

Frankly its just a Market like any other & people who come out with clichéd statements like renting is throwing money away (usually people a generation older than ourselves) are just unsophisticated muppets.

Quote from: Sam

Quote from: Eggtastico

Quote from: BaconThe councils do a scheme where you buy half the house, or so. Its a % around that figure, so in essence you pay half as much.

I might not be spot on, but it works something like this.

they called starter homes & TBH its a bad Idea.

If I paid £200k for a new build, then I wouldnt be happy if the c**t next door paid £100k for an identical house, just because they are a first time buyer.

Simple.. you save or you live in a caravan.

They dont pay half and get the same house. They pay half and own half the house. You paid £200k and own the entire house. Its quite a good idea.

not around these parts. Its not Co-Owned, its owned directly.. but there are prob conditions when it comes to selling & its only available to 1st time buyers.
Co-Ownership is different & they are advertised as available to all

Theres various schemes countrywide.

Yeah theyre only available to first time buyers but thats a good thing I think in rivkids case. It certainly is in my case.

Quote from: M3ta7h3ad

Quote from: MarkI sold my house last year to rent, and I got almost 4 times what I paid

Im going to rent until the end of next year, or maybe middle of next, when I will pick up a great place from a distressed buyer.

Was it mortgaged?

If so why didnt you just switch to interest only?

Unless the prices were good at the time and you sold it to make money, not because it was costing you excess money.

Was no mortgage on it when I sold it. It was a house I built in my early 20s.

Move to Newcastle. problem solved

Oh and the 50/50 share theme is good, theres a housing new build near me thats 50% of 120K I think, so you get a mortgage for £60K and then pay rent on top.
Its through a housing association, you could ring the local associations near you and find a one like it.

Im currently going through all this too.
The only real advice I can offer you is that if youre looking to buy you want to be aiming for 15-20% deposit. As of 5 days ago I couldnt find a single lender willing to provide a 85% loan to value without massive setup fees (£3.5k on £180k) :s

Quote from: NimrodIm currently going through all this too.
The only real advice I can offer you is that if youre looking to buy you want to be aiming for 15-20% deposit. As of 5 days ago I couldnt find a single lender willing to provide a 85% loan to value without massive setup fees (£3.5k on £180k) :s

they are profiteering... Setup fees my arse. It dont cost them anymore if it was for a 10k house or a £10m house.
In the old sub-prime market, they called it a higher lending charge.

Somthing the goverment really needs to clamp down.

In the middle or remortgaing one of my properties so I got money in hand ready if I see another suitable property.
Broker f**ked up 1st time & the interest rate was 5.79%ditched him & went elswhere..
same mortgage, same bank, except the interest rate had climbed to 7.29%
That was 3 weeks ago. Then they pulled the offer from me & forced me to start again. Now its a whopping 7.89%
2.10% increase in 2months.

Not really bothered as the rent more than coveres the extra £20 difference.

Yeah its really dark but then thats the basics of supply and demand.

Its not a huge deal as the properties Im looking at are currently 20-30k down on this time 6 months ago, so even a 5k higher lending charge is still palatable, just.

Its great that I can now look at 3 bedroom houses rather than 2 bedroom flats. My plan is to be putting in offers within the next 9 months; hopefully the prices will have dipped a little more by then

Quote from: Markwait until late 2009, thats my advice.

Why pay £140k now for a house that will be worth rateable value + 10% in a very short time.

I doubt if it will go down that far but chances are the prices will drop by quite a bit.