Affordable housing

[Blue Maverick]

What exactly is this, how much is affordable, recently near us they built 14 terrace houses the cost is £330,000! These are been sold as joint ownership minimum of 35% to be put down, so you’d need £100k deposit, then you pay rent on the rest. So let’s say £500 mortgage then a similar amount on rent, so £1k a month. Now arguably people are paying that in rent alone so at least it gets people on the housing ladder, but the £330k for a 3 bed on a main road is absolutely ridiculous, to me affordable should be no more than £150k, (even that’s too much in my opinion), I really feel for people these days.

 

[inbetween]

What exactly is this, how much is affordable, recently near us they built 14 terrace houses the cost is £330,000! These are been sold as joint ownership minimum of 35% to be put down, so you’d need £100k deposit, then you pay rent on the rest. So let’s say £500 mortgage then a similar amount on rent, so £1k a month. Now arguably people are paying that in rent alone so at least it gets people on the housing ladder, but the £330k for a 3 bed on a main road is absolutely ridiculous, to me affordable should be no more than £150k, (even that’s too much in my opinion), I really feel for people these days.

I think you're confusing the shared owned percentage with the deposit because why would you need a mortgage if it's shared ownership and you're already basically buying a 35% share outright?

If it's 35% shared ownership then the buyer only needs to buy 35% of the house and not 100%. So 35% of £330k is £115k, you then need a mortgage on that amount. A deposit of around 5% on £115k is £5k needed.

The mortgage repayments will be more though at todays interest rates, probably £600+.

 

[metalblue]

Affordable needs to be based on typical incomes, so to me that converts roughly to a flat or 1-2 bed property should be around £100k-110k, a 2-3 bed property £180k then beyond that it’s a free for all. Obviously depends on specific salaries in the region and these affordable properties should be available only to people who currently live or have links to the area. No renting out allowed.

 

[PragueBlue]

I think you're confusing the shared owned percentage with the deposit because why would you need a mortgage if it's shared ownership and you're already basically buying a 35% share outright?

If it's 35% shared ownership then the buyer only needs to buy 35% of the house and not 100%. So 35% of £330k is £115k, you then need a mortgage on that amount. A deposit of around 5% on £115k is £5k needed.

The mortgage repayments will be more though at todays interest rates, probably £600+.

Plus the rent on the % of the house not bought would most likely make it well over £1000 a month I would have thought.

 

[Blue Maverick]

I think you're confusing the shared owned percentage with the deposit because why would you need a mortgage if it's shared ownership and you're already basically buying a 35% share outright?

If it's 35% shared ownership then the buyer only needs to buy 35% of the house and not 100%. So 35% of £330k is £115k, you then need a mortgage on that amount. A deposit of around 5% on £115k is £5k needed.

The mortgage repayments will be more though at todays interest rates, probably £600+.

Ye maybe my English on that is not right, I said shared because you are sharing it with someone else in that you only own 35%, obviously when you come to sell it any profit is split as far as I’m aware. My point still stands, what exactly is affordable? Says shared ownership on them

Check out this 3 bedroom town house for sale on Rightmove

3 bedroom town house for sale in Radcliffe Street, Royton, OL2 5PT, OL2 for £78,750. Marketed by Lisa Westerman Consultancy Lettings and Sales (LWCLS) Limited

www.rightmove.co.uk

 

[Blue Maverick]

I might also add they built 14 and there still half of them left after a year

 

[metalblue]

I might also add they built 14 and there still half of them left after a year

They’ve probably broken even with the 7 they’ve sold. Interestingly my home insurance has my house rebuild costs higher than I could sell my house for. I imagine many are like this. Bonkers if you ask me.

 

[Dave Ewing's Back 'eader]

What exactly is this, how much is affordable, recently near us they built 14 terrace houses the cost is £330,000! These are been sold as joint ownership minimum of 35% to be put down, so you’d need £100k deposit, then you pay rent on the rest. So let’s say £500 mortgage then a similar amount on rent, so £1k a month. Now arguably people are paying that in rent alone so at least it gets people on the housing ladder, but the £330k for a 3 bed on a main road is absolutely ridiculous, to me affordable should be no more than £150k, (even that’s too much in my opinion), I really feel for people these days.

£330k isn't too bad for Highgate, Hampstead or Islington! Bloody grim for Wigan!

 

[metalblue]

Ye maybe my English on that is not right, I said shared because you are sharing it with someone else in that you only own 35%, obviously when you come to sell it any profit is split as far as I’m aware. My point still stands, what exactly is affordable? Says shared ownership on them

Check out this 3 bedroom town house for sale on Rightmove

3 bedroom town house for sale in Radcliffe Street, Royton, OL2 5PT, OL2 for £78,750. Marketed by Lisa Westerman Consultancy Lettings and Sales (LWCLS) Limited

www.rightmove.co.uk

They do look quite nice. I don’t mind the concept of shared ownership, the logic being (for me) if the state invests in an area and that increases property prices then there is a solid argument the state should get some benefit from that. Conversely if they don’t and it goes to shit it’s fair they suffer the consequences. I’m less convinced on the rental aspect I’d rather see it as a bit of a peppercorn otherwise it’s not really affordable in the true sense.

Maybe all houses could be sold allowing for a % of shared ownership as an option. If the rent didn’t negate any savings in reduced ownership for the purchaser it might make things a bit more affordable (helping the seller who still receives full whack) and promote the concept of shared responsibility and local society a bit more.

 

[inbetween]

Ye maybe my English on that is not right, I said shared because you are sharing it with someone else in that you only own 35%, obviously when you come to sell it any profit is split as far as I’m aware. My point still stands, what exactly is affordable? Says shared ownership on them

Check out this 3 bedroom town house for sale on Rightmove

3 bedroom town house for sale in Radcliffe Street, Royton, OL2 5PT, OL2 for £78,750. Marketed by Lisa Westerman Consultancy Lettings and Sales (LWCLS) Limited

www.rightmove.co.uk

It's affordable because you would get a £330k house for £115k which is basically 65% off... A very good deal!

It depends upon whether you see a house as a home or an asset.

If you see it as an asset then unfortunately you have to subscribe to the fact that the housing market must always go up. If you see it as the opposite then buying a house is a really poor financial move...