shared ownership: good or bad?
June 6, 2012 10:56 AM Subscribe
How do shared ownership schemes work when buying a property? Are they a good idea or not? I am based in London, UK.
posted by anonymous to Work & Money (3 answers total) 3 users marked this as a favorite
I'm at the point now where I want to start thinking about my future, and what I'd really like is a place to call my own - no landlord, being able.to decorate with paint and pets as much as I like. I have.no interest in "the property ladder", I just want some autonomy and security.
My credit rating has improved in recent years, but the problem with getting my own place is the deposit - at 30% of, say, £150k, (the cost of a flat way out of town, or that will need a lot of work doing to it)that's about 175% of my annual salary. (I will hopefully be getting somewhere with my current partner if we stay together and happy in the future, but he earns considerably less than I do. I don't plan to change jobs for a number of reasons, so let's assume I don't suddenly start earning tons more.) Getting help from family isn't an option, neither is moving to a different part of the country right now. I'm working on paying off.my consumer debt, and am saving a little too, but this isn't enough to produce the seemingly enormous sum required to get started. The thought of having to deal.with the insecurity and expense of renting is a less than pleasant one. In a couple of years, I'll be debt-free, have hopefully a good chunk of.money saved, a happier credit rating and a good idea of whether the boyfriend and I would be wise to buy together, so the impossibility of it is really discouraging.
I have read about shared ownership schemes, where you essentially buy a part of a property and rent the rest, with the possibility of increasing your share later. This seems like a far more attainable future goal, but I wonder if these are the wisest choice - is there a catch? I would probably qualify for the schemes where you have to have below a certain household income, and it seems like a good idea for someone in my/our position. Is it? Any experiences?