part-buy, part-rent homes.....

[tinkerbelle93]

Does anyone have any opinions or experience of this?

Me and OH want to get our own place but buying isn't really a financial option, it's really hard :/

So we're considering a part-buy part-rent home?

However, I have read some negatives about them.. but surely part-buying is slightly better then just purely renting, when buying fully just isn't an option?


Arggg opinions please!! xx

 

[Ruby x]

im in the same situaton. Can afford a mortgage but not a deposit!

Thing that makes me hold back on part rent part buy is if you split up you cant rent the property out cos you are renting it already it would be sub letting which im pretty sure you cant do.

Also, I know someone who did it then the other houses around didnt sell so they sold them off as social housing and she had terrible neighbours (abusive, not respecting property/boundary/lot of noise) and the house price dropped significantly too. They found it really hard to sell. Not saying that social housing tenants are bad but with an investment like property I wouldnt wanna take the risk.

 

[tinkerbelle93]

im in the same situaton. Can afford a mortgage but not a deposit!

Thing that makes me hold back on part rent part buy is if you split up you cant rent the property out cos you are renting it already it would be sub letting which im pretty sure you cant do.

Also, I know someone who did it then the other houses around didnt sell so they sold them off as social housing and she had terrible neighbours (abusive, not respecting property/boundary/lot of noise) and the house price dropped significantly too. They found it really hard to sell. Not saying that social housing tenants are bad but with an investment like property I wouldnt wanna take the risk.

I know someone this happened to as well lol! So it can't be a rare occurence.. But still, since buying outright just isn't a likely option surely out of purely renting and part-buying/part-renting, shared ownership is the best option out the two? xx

 

[Ruby x]

depends if you will ever split up and if u cant sell the property quick renting it out is a good option. While I believe me and OH will be together forever im not gonna put myself in a risky financial position being stuck paying for something I cant afford alone.

if you find a home you can live in for a long time or one you would buy normally if u had the deposit then its a good idea. I cant find any 3 bed houses, only small flats.

 

[HayleyBoo]

I part own part rent my home we bought our house 7 years ago thinking that when our situation changed we would either buy more or sell and move up the ladder. Our situation never changed and actually got worse! When we first bought the house it was great as the rent was low on the other 50% but every year the rent has been put up by the maximum allowed which after so long is a real negative as the rent has more then tripled since we moved in! But at least we are paying for some of our own home rather then paying all of someone else's mortgage!

 

[lauren-kate]

We have a shared ownership property too. We've been here nearly 3 years now, and haven't found any problems. We decided we'd rather have the security of this over a rent-only property, and be paying money into something rather than renting and not really getting anything for it.

 

[nickibrum]

Im just abuot to start teh process of buying ourr House. we were really luckly. In Birmingham 3 years ago they had a scheme to rent to buy. Which meant our rent was high (750, now 791) but 40% of that (330) was put into a pot to save for our deposit.
Now we have the 10% deposit together we can purchase up to 75% and then after 12 months we can staircase to 100%.

This was brilliant for us. We try to save 800 a month, but if we didnt have taht compulosry saving of 330 there is no way we would have saved over 1K each month. This scheme allowed us to get married, pay off our debts and still get the deposit together.

You are right your cant sublet the property if your not living in it, but i was allowed a friend to live with us and pay towards the rent at one point. They are quite leniant as they know we are going to buy it.

My suggestion would be to buy the maximum you can e.g. 75%. Easier to staircase up and the rent is less so you have more control over it. Its also more attractive when you come to sell. Our rent is going to be 101 for the remaining 25% and 24 for the service charge. our mortgage is going to be around 640 so its actually working out cheaper for us to buy than rent! not by alot but ill take anything i can get.

xx

 

[xxembobxx]

I go on the Money Saving Expert website and they are really anti these part-buy schemes.
I suppose the problem is when you go to sell you are limited to buyers who are eligible for part-buy/rent.
If you are able to eventually buy 100% of the property I can't see a problem with it, it's just whether you can afford to do that in the future.
All new developments have to have 25% of social housing I believe so even if you bought the property outright you could end up living next door to anti-social socially housed neighbours.

 

[nickibrum]

It all depends on the people like embob mentions.

Its why i liked our first scheme so much, we got to know the area and neighbours before actually purchasing. I would say the aim is always to have 100%, it is alot harder to sell on though you may find the housing association (like ours) wants first refusal so they may purchase from you. For us to staircase up to 100% it will cost about 5K so a fairly easy target. i dont think 25% is worth it. it will be hard to staircase and even if you do then it would probably be to 50 or 75% meaning it takes longer to get to the 100%.

xx

 

[x__Hannah__x]

Can someone please explain to me what this is. Thanks. x

 

[nickibrum]

Its a scheme for first time buyers generally I think. There are two types of schemes to get people on the property ladder, shared ownership and shared equity.
1) shared ownership (what were talking about) is where you can buy a percentage of the full value, usually 25/50/75% but you can sometimes do random numbers like 64% aslong as its between 25-75%. you typically cant purchase more than 75% for the first year and then you staircase up to 100%.
2) Shared equity: i dont know too much about this but i believe you put up 5% deposit and the builders will add 25% meaning you have a 30% deposit. But when you come to sell up and move they get 25% of the purchase price. So if you purchase a property for 100k and sell for 150K they will get 25% of the 150K- therefore eating into your profit.

I perfer the shared ownership (as long as your buying a high percentage) as your still doing it all yourself just in stages. hence why were buying 75% and then will aim to staircase in the next 48 months depending on when #1 comes along.