MegaSack DRAW - This year's winner is user - rgwb
We will be in touch
We've been served notice on our rented house, landlord wants it back to give to his kids. I've been searching on the web, going to estate agents and driving around looking for somewhere new and i've noticed these schemes to help you get on the property ladder with various offers on new builds.
Things like:
Shared ownership, part rent, part mortgage.
Desposit doubled by builder - as little as £5k to get started.
85%, with the other 15% interest free over 10yrs, you only pay it back when the term is up or you sell it and move.
Anyone used these? Any thoughts?
We will probably just continue renting and save up in the conventional way, but they may be an option.
R4 today had someone stating to wait as bottom of the market may not have been reached
the new government scheme has the potential to be used by builders to dump overpriced stock
it's still worth looking though as house prices are more local than the general stats would have you believe. Just be careful and work hard on reducing the price
They're an option for sure, but as BND suggests due to the new govt. scheme kicking in, in 6months - you may basically end paying more than it'll be worth if sold a year or so later.
However, they're good if you're in the position that a bit of negative (or equal) equity for a few years isn't a problem.
You do need to get a good discount on the property to reduce that risk.
Used to be
33% for the land
33% for the build
33% for the developer as profit
but things have changed hence all these 'offers'. Locally (Burgess Hill) 3 new flats on the market for 170k+ over the last 2 years (unsold) are now being marketed for £117K which is probably well over the real market value but means mortgagees can beat the LTV requirements.
I would think it reasonable to assume that any developer backed scheme will ultimately be to their benefit.