New House/Mortgages

[Jock42]

Just been reading about a 30% discount for key workers on new build homes. Seems all to good to be true and I'm not sure its available up here. Anyone savvy with this type of thing that can offer advice?

[Globus]

No one has commented yet so I'll throw in my tuppence h'apennyworth.

There are some discounts available but not up to 30%, I believe.

Some builders (like Taylor Wimpey) are offering 5%. It may well be that some may offer a shared ownership / equity package, which is not the same as buying the property outright, but might be worth considering.

Good luck in your search Jock, it's a bit of a minefield out there!

[frodder]

No one has commented yet so I'll throw in my tuppence h'apennyworth.

There are some discounts available but not up to 30%, I believe.

Some builders (like Taylor Wimpey) are offering 5%. It may well be that some may offer a shared ownership / equity package, which is not the same as buying the property outright, but might be worth considering.

Good luck in your search Jock, it's a bit of a minefield out there!

I'm with Globus on this. Any discount will be low and heavily caveated

[Lobby]

No one has commented yet so I'll throw in my tuppence h'apennyworth.

There are some discounts available but not up to 30%, I believe.

Some builders (like Taylor Wimpey) are offering 5%. It may well be that some may offer a shared ownership / equity package, which is not the same as buying the property outright, but might be worth considering.

Good luck in your search Jock, it's a bit of a minefield out there!

I'm with Globus on this. Any discount will be low and heavily caveated

It’s a proposed scheme in England. Details here:

https://www.gov.uk/government/news/gov ... by-a-third

The main catch appears to be that you have to pass the discount on when you sell, so any property sold under the scheme will be worth 30% less than market value in perpetuity.

[Jock42]

https://www.zoopla.co.uk/discover/prope ... nt-scheme/

So I'm working off of that. I know about Taylor Wimpey's offer.

[Jock42]

No one has commented yet so I'll throw in my tuppence h'apennyworth.

There are some discounts available but not up to 30%, I believe.

Some builders (like Taylor Wimpey) are offering 5%. It may well be that some may offer a shared ownership / equity package, which is not the same as buying the property outright, but might be worth considering.

Good luck in your search Jock, it's a bit of a minefield out there!

I'm with Globus on this. Any discount will be low and heavily caveated

It’s a proposed scheme in England. Details here:

https://www.gov.uk/government/news/gov ... by-a-third

The main catch appears to be that you have to pass the discount on when you sell, so any property sold under the scheme will be worth 30% less than market value in perpetuity.

Cheers.

[Openside]

I'm with Globus on this. Any discount will be low and heavily caveated

It’s a proposed scheme in England. Details here:

https://www.gov.uk/government/news/gov ... by-a-third

The main catch appears to be that you have to pass the discount on when you sell, so any property sold under the scheme will be worth 30% less than market value in perpetuity.

Cheers.

Well it has to be otherwise 'affordable housing' is only affordable for the first people who buy it....

[Globus]

There's always a catch when "it's too good to be true".

The scheme is a form of shared ownership / equity, as I've said. But not to be sniffed at. If it gets someone onto a decent ladder with opportunity to benefit, then that's OK with me.

I'm no expert these days but did work on the "Local Authority Support Scheme" when Maggie sold off council houses at large discounts and that benefited my great pal and scrum half whose family had never owned a house. He and his wife were brought up in the Valleys.

They now live in a rather splendid place in Brantham.

There's a bit of hope out there but first time buying is not much of a nice situation to be in.

I also dealt with "Equity Release". Now that's a right bearpit as well. I advised against doing it then but it seems to have bounced back.

Again, my good wishes upon your quest. I'm happy to help a fellow poster on here in any way I can. Not on commission! That includes legal advice but there's the odd solicitor around here who might be more up to date.

[Paddington Bear]

What do we see in the tea leaves for next year? My suspicion is that there's a fairly significant correction on it's way.
Suspect there may be very decent deals on central flats, they won't be out of fashion forever.

[Jock42]

It’s a proposed scheme in England. Details here:

https://www.gov.uk/government/news/gov ... by-a-third

The main catch appears to be that you have to pass the discount on when you sell, so any property sold under the scheme will be worth 30% less than market value in perpetuity.

Cheers.

Well it has to be otherwise 'affordable housing' is only affordable for the first people who buy it....

Doesn't really bother us, if the scheme was available it would be our last move anyway. We'll be decrepit by the time we sell it on.

Thanks globus

[Biffer]

It's a desperate attempt to stop the arse falling out of the property market. The wider population doesn't understand just how critical high house prices are to the success of the consumer led economy, and what would happen if they fell substantially. And if they did realise, the whole ponzi scheme of our economic growth of the last 40 years would pop.

[Jock42]

I'm not really bothered how desperate it is if it saves me money.

[Openside]

I'm not really bothered how desperate it is if it saves me money.

Proper Scot

[Jock42]

I'm not really bothered how desperate it is if it saves me money.

Proper Scot

better believe it mate.

[fishfoodie]

It's a desperate attempt to stop the arse falling out of the property market. The wider population doesn't understand just how critical high house prices are to the success of the consumer led economy, and what would happen if they fell substantially. And if they did realise, the whole ponzi scheme of our economic growth of the last 40 years would pop.

The interest rates could be hare'em scare'em Post-Brexit, so I would be playing it safe for on them when getting a Mortgage

[Blackmac]

It's a desperate attempt to stop the arse falling out of the property market. The wider population doesn't understand just how critical high house prices are to the success of the consumer led economy, and what would happen if they fell substantially. And if they did realise, the whole ponzi scheme of our economic growth of the last 40 years would pop.

The interest rates could be hare'em scare'em Post-Brexit, so I would be playing it safe for on them when getting a Mortgage

Our daughter is moving up the ladder and selling her 2 bed flat. We thought about buying it as a rental property but the mortgage adviser almost fell over himself to disuade us. He told us that most experts are predicting a possible 30% decline in prices next summer and we would find ourselfs in a hole for decades.

[Paddington Bear]

It's a desperate attempt to stop the arse falling out of the property market. The wider population doesn't understand just how critical high house prices are to the success of the consumer led economy, and what would happen if they fell substantially. And if they did realise, the whole ponzi scheme of our economic growth of the last 40 years would pop.

My view is not far off this, so am building up a large savings base with the aim of essentially buying once. The amount of my mates who have bought one beds is mad.

[robmatic]

It's a desperate attempt to stop the arse falling out of the property market. The wider population doesn't understand just how critical high house prices are to the success of the consumer led economy, and what would happen if they fell substantially. And if they did realise, the whole ponzi scheme of our economic growth of the last 40 years would pop.

The interest rates could be hare'em scare'em Post-Brexit, so I would be playing it safe for on them when getting a Mortgage

Our daughter is moving up the ladder and selling her 2 bed flat. We thought about buying it as a rental property but the mortgage adviser almost fell over himself to disuade us. He told us that most experts are predicting a possible 30% decline in prices next summer and we would find ourselfs in a hole for decades.

Usually mortgage advisers are somewhat biased on the positive side about property as well.

I have a 2 bed in central Edinburgh that I rent out (bought in 2010). The rental yield isn't great but it kind of works as an investment while interest rates are so low. I imagine things will get squeaky for a lot of landlords if/when interest rates go up.

[Big D]

It's a desperate attempt to stop the arse falling out of the property market. The wider population doesn't understand just how critical high house prices are to the success of the consumer led economy, and what would happen if they fell substantially. And if they did realise, the whole ponzi scheme of our economic growth of the last 40 years would pop.

The interest rates could be hare'em scare'em Post-Brexit, so I would be playing it safe for on them when getting a Mortgage

This is my next conundrum. 5 year fixed term is up in January and I can potentially fix at approx. 25% LTV for 15 years to see me through. But unsure whether that is the best idea.

[Biffer]

It's a desperate attempt to stop the arse falling out of the property market. The wider population doesn't understand just how critical high house prices are to the success of the consumer led economy, and what would happen if they fell substantially. And if they did realise, the whole ponzi scheme of our economic growth of the last 40 years would pop.

The interest rates could be hare'em scare'em Post-Brexit, so I would be playing it safe for on them when getting a Mortgage

Our daughter is moving up the ladder and selling her 2 bed flat. We thought about buying it as a rental property but the mortgage adviser almost fell over himself to disuade us. He told us that most experts are predicting a possible 30% decline in prices next summer and we would find ourselfs in a hole for decades.

Yep, massive downturn in commercial property coming. 20-30% drop in demand for office space combined with the accelerated death of the high street for retail space. That will knock on to residential property.

What we'll see as policy response will be more and more desperate attempts to prop up prices; they've been doing this for years already with help to buy schemes, these will just become more intense. But they won't work, because it's a permanent paradigm change.

A more sensible policy response would be to spend that money on revitalising city centres to make them attractive places to live (which is obviously easier to do in some cities than in others). How do you turn office buildings into residential ones for example, and how do you create centres where people want to spend their free time - this could also help to revitalise the creative industries which will be struggling.

But government will continue to push high house prices as it's fundamental to the economic model of the last 30-40 years. When you have a consumer led economy, you need people to feel wealthy so that they spend more money on stuff. If they feel wealthier they think they should have more stuff, or the latest stuff, or the best holidays, so increasing their perceived wealth is a necessity for a consumer driven economy.

When the arse falls out of housing, then it falls out of that entire model.

[Globus]

.

[Globus]

Whoops, wrong thread.

Some interesting thoughts posted. Nice to see. Not sure of future. We've definitely prospered due to house price increases and this has meant we've got the kids on the ladder and we are stowing up to get the grandkids there too.

Just have to live long enough!

High Streets will wither. We've fought to stop shops being converted to residential here but Covid has shifted all the goal posts.

The Government plans to relax housing planning permission strictures is a real worry for many. Living next to a two storey dwelling which might be demolished for a "skyscraper" adds a lot of worry. Having defended our Town from this sort of thing and being involved in the extension of our Conservation Area, I'm just left with a feeling of gloom for the future.

The likes of Persimmon et al don't give a whassit if they can squeeze profit from whatever they can lay their hands on.

I shall still have my boxing gloves on.

[Uncle fester]

The interest rates could be hare'em scare'em Post-Brexit, so I would be playing it safe for on them when getting a Mortgage

Our daughter is moving up the ladder and selling her 2 bed flat. We thought about buying it as a rental property but the mortgage adviser almost fell over himself to disuade us. He told us that most experts are predicting a possible 30% decline in prices next summer and we would find ourselfs in a hole for decades.

Yep, massive downturn in commercial property coming. 20-30% drop in demand for office space combined with the accelerated death of the high street for retail space. That will knock on to residential property.

What we'll see as policy response will be more and more desperate attempts to prop up prices; they've been doing this for years already with help to buy schemes, these will just become more intense. But they won't work, because it's a permanent paradigm change.

A more sensible policy response would be to spend that money on revitalising city centres to make them attractive places to live (which is obviously easier to do in some cities than in others). How do you turn office buildings into residential ones for example, and how do you create centres where people want to spend their free time - this could also help to revitalise the creative industries which will be struggling.

But government will continue to push high house prices as it's fundamental to the economic model of the last 30-40 years. When you have a consumer led economy, you need people to feel wealthy so that they spend more money on stuff. If they feel wealthier they think they should have more stuff, or the latest stuff, or the best holidays, so increasing their perceived wealth is a necessity for a consumer driven economy.

When the arse falls out of housing, then it falls out of that entire model.

Possibly but another possibility is that it will increase demand in places that are currently not within regular commuting distance from work. If you're going to be working from home more, a 1 bed apartment 30 mins from work is going to be less attractive than a bigger house 90 mins from work, especially if you only have to do that commute a few times a month.
Could be very fluid until it all settles out.

[walletoraccess]

All the above makes me feel smug
Sold my house, moving further away from work and as well as a nice house I will have a good cash pile as well

[Biffer]

All the above makes me feel smug
Sold my house, moving further away from work and as well as a nice house I will have a good cash pile as well

Im alright jack.

Smug is the wrong word - you can’t feel smug about being lucky. If you’d made some kind of informed decision, you could. But you didn’t.

[Globus]

All the above makes me feel smug
Sold my house, moving further away from work and as well as a nice house I will have a good cash pile as well

I don't feel smug at all. We've downsized big time. Still got a rented pile to top up funds when needed.

In a four bed detached house in Oundle with all you could want. Suits us down to the ground. Modern (2000) and I've no wish to go repairing stuff anymore at my age. I get people in.

[Globus]

By the way, the word "detached" in bold is because some idiots on the other place think it's a semi. It's not. Air flows between us and the neighbours.

[walletoraccess]

Biffer - smug is the right word

I work in the property sector & fully expect a correction next year.
Our intention was to downsize in the near future & seeing the way the market was took the decision to sell & move on the basis that the free cash would be of a grater magnitude by doing it now