What do you think to part buy schemes in London?

[EachandEveryone]

I don’t own. I’ve inherited 30,000 but won’t be getting it for awhile. I work in London but eventually will move back up north. They are building flats all around me, thousands of them. They are saying they are worth £450 plus but they aren’t. So, 125 grand will buy a person a quarter plus they charge £450 rent and £150 service charge. Totally it will be about £1300 a month. Is this kind of thing ever worth it? My rent on a three bedroom is £1300 and I share.

Thousands and thousands of flats what if you can’t resell because there are so many brand new ones popping up? What if they are all subletted to people that you really wouldn’t want to share a building with? What about all the gang members/dealers that are there now will the council be rehousing them in these flats?

Before the Brexit vote I would have said buy whatever you can in London

Now though... jobs and businesses moving out left right and centre, sales sluggish, prices falling, i don’t feel confident long term due to the impact of Brexit on the financial sector, which is essentially what keeps the whole city afloat

I would buy elsewhere tbh, Somewhere you actually want to live long term x

Well, that would be up North i wonder if its doable i plan to go back in 7 years

I saw an advert for a part-buy flat recently, two bedrooms in high-rise. Minimum income required 68K.

It was very near Canary Wharf.

If you plan to go back north, why not buy there and rent it out for those seven years? Let someone else pay the mortgage for a bit as well as some of your rent.

I would be tempted to buy up north as well.

What part of London are you looking at Each .
I know Galliard Homes are marketing Romford as London .
There will be 650 new flats near Queens Hospital too.
(I wouldn't call Romford Rough and Souless though )

If you don't want to live there, then don't buy there!

I'm curious as to where too?

Property demand has long outstripped supply in London, so personally I wouldn't be worried. So many people are moving into London all the time, and there is a huge shortage, which gives rise to the high prices.

70 what would you call Romford? I haven't heard anything positive about it! I wouldn't call it London either, it's very much Essex!

www.genesishahomes.org.uk/resale/zenith-house-colindale-nw9/ it would be two bedrooms so I could get a lodger

450k for a 2 bed in colindale? If it's 1300/month, and you can get a lodger, then your monthly outgoings will be pretty reasonable.

I don't think Colindale is that rough or soulless.

Under shared ownership you wouldn’t be allowed to sublet/have a lodger.

Collindale grahampark estate not rough? Really?

hibble IMO Romford is very much Essex but some view it as East London.

It's not that rough and souless but it is getting busier by the year, every time you blink there's a block of flats being built .

altwoo I don't think that is completely correct. Letting part of the flat is allowed usually.

I would imagine it is if you own part of it. They wouldn’t know would they?

Check the terms of your lease.

I have had a shared ownership in the roast and as long as you were living there you could charge rent to someone else.

Another resident could report you, but even then it's limited as to what the housing association could do.

In terms of objective comparison, the area isn't that bad. I looked up the crime statistics and they are pretty good compared to my inner London area, which isn't even an estate, though there are plenty of local estates, which are very rough around here. I would consider it relatively low crime.

I’m the first to defend the area I’m further up in a rough n ready place that got slagged off for having the worst high street in Britain and I really love the community feel of it. Sadly the council won’t spend any money doing it up and are waiting for the day they can knock it all down. Where those flats are has no community spirit yet. Or local ameneties.i know all of this as it is my part of London.

Yep, buy a freehold up north and rent it out until you move back.

That deposit would get you a nice little house up North with a BTL interest only mortgage. The rent would cover the mortgage payments and part of your own rent.
In a couple of years you can release some equity tax free. You could probably then get a place of your own wherever you want to settle.
I wouldn't buy in London now.
Prices are likely to fall over the next year.
Where I live there have been far too many expensive flats built and a lot of them are empty. Prices are falling.
I know someone desperately trying to sell a shared ownership flat due to an unexpected bereavement. They need to sell at nearly £200K over the local prices.

Shared ownership was probably a good deal provided you bought years ago in a rising market, but I'm wondering if it is now, for the reason pp said about uncertainties in the economy and a slowing property market?

I would have some concerns of s.o flats in a property slump, as housing associations are stubborn about lowering prices in those circumstances, this was the case in the 2008 slump. So if there is a slump coming s.o flat prices are bound to be overly inflated in relation to the 'general' market stock, which will make them less desirable to buy. What will happen if these housing associations can't sell the flats they're building overall London? The risk is that they will increase the rent/service charge for existing tenants, which will make the flats unaffordable -yet difficult for existing tenants to sell.

Spoog1971xx : without detailing your court case, what are the main issues your taking the housing association to court for?

I live in the borough of Wandsworth (zone 2) where hundreds of new build flats have gone up all along the river between Putney and Waterloo - one housing association has a 25% share costing £165K but heaven knows what the rent and service charges are.

As all these new properties are not reasonably priced, bearing in mind the average salary in London is £28K, I suspect loads will go onto the market in the next 2/3 years and prices for them will have to come down so no, not a good investment unless you plan to live in them long term.