property ladder

[buhimir]

how is anyone going to get on the property ladder? it is near impossible, check out the article below for some advice


http://money.lycos.co.uk/lycos/index.jsp

[bob-skinner]

I'm so glad that we bought when we did!! I would not be able to afford my home now.

[richieuk]

I don't know how first-time buyers afford a place on the property ladder. I struggled.

[Saz22]

There is a new housing development in my area where they offer part ownership. I dont quite know how it works though.

[bob-skinner]

Originally Posted by Saz22

There is a new housing development in my area where they offer part ownership. I dont quite know how it works though.

Usually you pay up to half of the asking price and then pay rent on the other half of the value. You have the right to buy the other half if your circumstances change and you can afford it.

[Froggystlye]

The way shared ownership works is that you buy a share of the house, this can be anywhere from 20% upto 90%, you then pay around 3% of the remaining value split into 12 monthly payements. So if the property is worth £100k and you buy 50% you then pay 3% of the £50k which is 125 per month to the housing company, as well as the monthly payement to your bank/lender. This sounds good but if you require a 3 bed house you may find the total repayments add up to around the same as a mortgage. Plus you have to take into account the value of the property when selling as the housing company get 50% of any extra value added by yourself. i looked into and decided against it, i have now bought a house in Wales (I am from Midlands) just so i can get on the ladder, when the house prices settle(if they will) and i have a few quid in this house i should be able to move back. A tad extreme but i have no choice as i require a 3 bed house for the kids!! I think they really need to sort house prices out.

[luckythecat]

I agree, it can be a real struggle to get on the ladder. Best bet is to get a cheap first house and build your way up from there. Many people call their first house a fixer-upper meaning that they will try to add value to it in order to make a good profit. This can be done by creating larger spaces by removing internal walls or building extensions. Another good idea is to make sure the house has glood quality fixtures and fittings such as upvc windows and other home improvements. Hope this is of some use to you.