Renting? Shared Ownership?

Shared ownership is where you own a percentage of the house which is paid by mortgage and also pay rent on the other part that you don’t own. You will still need to save a deposit and pay legal fees but the deposit will be smaller than buying the whole house. You will also have the option to buy a larger share of the house in the future and pay less rent. I have heard that they can be very difficult to sell though and a flat will also be subject to extra maintenance fees. My brother is using an inheritance to buy a large share of a property outright then pay cheap rent, that’s probably the best way to do it

Is it better than just renting? I can’t afford a mortgage outright yet and I guess renting in the long run would end up being more expensive?

andi said:

Is it better than just renting?

I used to work for a company that built and sold these as part of its property portfolio and the whole model is designed to take as much money from you as possible.

If the property rises in value, you have to share any profit with them when you sell.

If the property drops in value, you have to take all the loss when you sell.

Management fees are a way they take a lot more from you than they spend on delivering the services that these fees are for.

Appeal for shared ownership is really only there when the market is in a very overvalued state so if times get difficult it becomes incredibly hard to sell it.

Do some research online - that can be ok in specific circumstances but I suspect it is not a good deal for you to consider just to "get on the ladder" as you will find it near impossible to move to a different rung.

I believe it better to wait that extra year, build up your deposit that bit more and maybe buy in conjunction with friends with a clear contract to work from if you have to get out on your own.

andi said:

Is it better than just renting?

I used to work for a company that built and sold these as part of its property portfolio and the whole model is designed to take as much money from you as possible.

If the property rises in value, you have to share any profit with them when you sell.

If the property drops in value, you have to take all the loss when you sell.

Management fees are a way they take a lot more from you than they spend on delivering the services that these fees are for.

Appeal for shared ownership is really only there when the market is in a very overvalued state so if times get difficult it becomes incredibly hard to sell it.

Do some research online - that can be ok in specific circumstances but I suspect it is not a good deal for you to consider just to "get on the ladder" as you will find it near impossible to move to a different rung.

I believe it better to wait that extra year, build up your deposit that bit more and maybe buy in conjunction with friends with a clear contract to work from if you have to get out on your own.

Don’t get me wrong. I made mistakes and it’s cost me a lot of money. 10 grand in my savings trying to help my significant other and bailing him and his kids out of things. So yes I made some stupid mistakes and if I didn’t I could probably have enough for a house so yes I was stupid but now I’m trying correct but it feels too late 

I don’t really have a year, my end goal is a little 2-3 bed house. Get a mortgage and just live there for the rest of my life. However it’s so hard right now. I’m saving as Much as I can and now my wages have gone up hopefully my savings will go up faster but everything is so so expensive now and it’s so disheartening. I’m doing my driving lessons but I can’t afford a car, I get a decent wage for my age and experience but I can’t afford to move out. Life just seems like a massive catch 22