House prices and first time buyers

[violetblue]

Yet again, I've read about the sickening house price rises which I'm fed up of seeing as 'good news'; it's a disaster for us. Has anyone had experience of buying a half share (ie with a housing association or similar owning the other half) and would you recommend it? Thank you very much in advance.

[ugly_bob]

not yet violet, but I'm looking into doing that myself now. Just about to send off the application form actually.

[tim2969]

Lets look at the evidence High Unemployment Interest Rates steadily rising possible oil crisis and the potentail failure of the US equity markets in about 18 months proprty prices will come tumbling down you mark my words.

[violetblue]

Hope it goes well for you, bob - sorry can't call you ugly. Keep the site posted.

If only, Tim, but I've been telling myself that for 3 years and I fear it's getting so that even if they fall in the future, it will be from such a high level, and the years are ticking away - haven't got 25 to spare...

[Mr Tall]

I am in the process of getting a mortgage now ex council RTB. but even with the �16,000 discount I am really going to struggle with a �194,000 mortgage. The problem is the longer I leave it, it becomes increasingly unlikely that I'm going to get my foot on the ladder and I don't want to miss the boat. I wouldn't mind so much but its only a 1 bedroom flat conversion.

[lucyp]

My property is a 50% ownership with a housing association. Its ok if you are younger, but If you are in the property upon retiring age, you have to consider wether you can afford all the service charges & the rent you have to pay on their half of the property that you occupy. My Assc. pay nothing at all towards the property, I am responsible for everything, and the rent goes up every two years. The best thing to do is go ahead, then buy the other half asap. You also get treated like a housing Assoc. tenant! But dont let me put you off!

[buildersmate]

That's not one of the better deals offered by Housing Associations. The 'rent' you pay on the share you don't own does not increase in the some of the better deals - its fixed for about 15 years. It should be set at around 2.75% of the capital sum owned by the Housing Association and stay fixed.

[violetblue]

Thanks so much all of you for your replies, and good luck with your own situations.

[DCMT]

The only reason house prices are remaining so high is that uninformed people are pannicking and stretching themselves to the limit to get on the ladder worried that they will continue to rise They are so stretched that any more interest rate hikes, which are on the cards will see many houses repossesed. Many have taken interest only mortgages which are a joke. You are better off renting. Once these fools are bankrupt the House prices will come plumiting down. Why do you think banks lend you up to 7 times your salary, It's because they desperate to tie you into a large money making mortgage not because they are trying to help. Also the only ones who still tell prices are rising are the estate agents who are scared to death of the truth, and in the hope of persuading the uninformed scared buyer into parting with there money.
Please do not fool for this, use your brain look at the ecomony, higher interest rates, unemployment, recession round the corner and wait a little while you are the only ones to blame for propping up the prices.