To think part buy, part rent is just a rip off?

[Kokothecow]

I haven’t seen one property where the RENT part alone was less than 1k per month. (I’m south east.) Then you have a mortgage on top, right? And you only own a % of the house.

The only advantage I see is smaller deposits, but in the long run they’re just taking the piss out of people who don’t have a lot of money up front aren’t they?

Or maybe I’m not understanding it fully 🤷🏼‍♀️

I did this, and the rent portion was really reasonable. Ended up with a 2 bed flat where mortgage and rent came to less than £80 more than what I'd been paying to rent a room. I sold after 5 years, and my share went for 17k more than i paid. Was best decision i ever made.

That’s good @Emma198. I’m glad it can work, but I can’t see it working for us 🤷🏼‍♀️

Also worked well for us- we would have never got on the property ladder without it.Paying the same price as what we were paying in rent and after 4 years we had paid off enough of the mortgage and had enough equity to have a 40k deposit too.

YANBU however I think shared ownership is aimed at people on decent incomes but without much of a deposit but we were the opposite - decent deposit but very average income, so it didn’t really appeal to us

I’m not finding these reasonable prices where ever I’m looking. The rent portion is like your average rental price then you’d have to pay your mortgage on top. I know it gets you onto the property ladder & you will hopefully walk away with a larger deposit when it comes time to sell. But the monthly payments seem crippling to me?

Same position as you @cadburyegg

A rip off is something that's charging offensively more than it's worth. What you're saying is you can't afford it, which is not the same thing.

Local to us (Surrey) market rent for a property similar to the one we own (bought with about a 20% deposit) is 20% less than our mortgage payments so it makes total sense that part rent part buy will be materially more expensive than just renting?

You become responsible for repairs, whereas I just rent and my social landlord covers most repairs.
I think its better if you have a lump sum you want to use to buy some shares.

I think what you're complaining about is just the cost of housing. To rent is expensive. To buy is expensive. Why do you think doing part-rent-part-buy will be anything other than expensive?

We decided to buy in a slightly worse area rather than part rent part buy in a better area. We didn’t want a leasehold property and to be beholden to a landlord. Best decision to for us as our house has already gone up 10% in value in 2 years.

When I looked into it it was the conditions attached on shared ownership that put me off, you have to sell through the housing association, so you can’t pick your estate agent, the conveyancing was more expensive because there’s two lots of contracts, you have to ask permission to change things like a new kitchen or bathroom and when you staircase you pay the current value so could end up paying loads more for the house than if you bought it 100% straight off.

But I can see that if it’s your only option then those would just be inconveniences, luckily we found a house the next town over from where we wanted to be that we could afford a mortgage on because it’s a cheaper area.