Tuesday, 2 September 2008

Helping first time buyers? thoughts on government help and shared ownership

I really enjoyed this article by Ross Clarke in The Times this morning.

He is basically arguing that most of the governments scheme to help first time buyers are motivated out of self interest to keep votes. Which of course we probably do all know if we think about it but it can be very difficult if you have been waiting for years to have your own place to be level headed so an article like this is very helpful in giving perspective.

Furthermore he discusses the government's plans to increase shared equity schemes. These are something I have always avoided like the plague. I have felt that they leave you open to risk. Fine you can buy 50% of an often lovely flat in an area that you could never afford otherwise but what happens about the other half?

I'm sure the housing companies who own the other half aren't investing purely to break even. I don't mean the housing companies are looking for anything more than a healthy return on their investment but surely if the housing market continues to fall they will need to start cashing in investments.

Also what would happen if one of these companies was unfortunate enough to go into administration?

No when I finally own I want to own the whole property or own with someone I trust going into the purchase.

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