Ian
Site Administrator
Registered: 28th Aug 99
Location: Liverpool
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If that's worth spending more money then yeah, do that.
Dead money though - what would you call your money? You spent it and can't get it back. That's called dead money isn't it?
Bit of a myth populated by people selling homes and a lot of people buying them that because its yours you're somehow investing and every pound you spend you'll in the least get back and in most cases get more back.
Facts are, its all dead.
Unless you're putting loads down or staying there for years, say bye bye to cash.
The above also assumes you didn't do any work while you're there. A lot of my neighbours have had heating problems, I've had a toilet pump, radiator valves.
Your dead money mates get those for free.
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John
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Registered: 30th Jun 03
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If you stick at paying a mortgage for long enough you'll have something of some value. If you rent forever you don't.
If you don't have kids/don't care about leaving them money and also don't mind paying rent until you die instead of a mortgage until hopefully some point before then, you aren't better off.
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Kyle T
Premium Member
Registered: 11th Sep 04
Location: Selby, North Yorkshire
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If my post didn't ooze enough sarcasm regarding dead money, apologies 
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Impreza WRX STi
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Ian
Site Administrator
Registered: 28th Aug 99
Location: Liverpool
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quote:
Originally posted by John
If you stick at paying a mortgage for long enough you'll have something of some value. If you rent forever you don't.
I agree but that's not what I'm talking about here. I'm specifically referring to a short term residency in a low equity situation.
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Ian
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Registered: 28th Aug 99
Location: Liverpool
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quote:
Originally posted by Kyle T
If my post didn't ooze enough sarcasm regarding dead money, apologies
Yeah kind of missed it worry 
I do like the moral high ground of pseudo ownership but if I needed to move I'd be in the exact same boat, paid loads, not much to show for it after its all said and done.
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deano87
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Registered: 21st Oct 06
Location: Bedfordshire Drives: Ford Fiesta
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Kyle T, your story worry's me 
Although I'm certainly not in a position to move yet, with the deposit I can save and the period of time I want to move, I was considering one of these schemes.
May be not now, unless like some say, it is a house and I have no aspirations to move and it is potentially big enough to raise a child!
Glad I am on the Save to Buy scheme with Nationwide as that still gives flexibility.
Yes 95% LTV but at least there isn't a 3rd party involved causing issues.
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Kyle T
Premium Member
Registered: 11th Sep 04
Location: Selby, North Yorkshire
User status: Offline
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quote:
Originally posted by deano87
Kyle T, your story worry's me
Although I'm certainly not in a position to move yet, with the deposit I can save and the period of time I want to move, I was considering one of these schemes.
May be not now, unless like some say, it is a house and I have no aspirations to move and it is potentially big enough to raise a child!
Glad I am on the Save to Buy scheme with Nationwide as that still gives flexibility.
Yes 95% LTV but at least there isn't a 3rd party involved causing issues.
My situation is slightly different from the one recently announced.
The value of my home has no impact on what I owe to the lender of my deposit (Government via Redrow). If I'd have taken a 95% "traditional" mortgage (such as the Nationwide offer) I'd be in exactly the same position, NE.
The only real safeguard is to have a larger deposit. If I had put down 10% instead of 5, I'd now be in a position to at least cut my losses and walk away.
Still it's kinda worked out for me. It's considerably easier for me to get £10k together than it was 5 years ago - so breaking even shouldn't be a problem providing we hammer down some savings over the next 12 months.
The new scheme however, as pointed out means that your contributed deposit will scale with the value of the property. If you're still living there in 10-15 years and your property has doubled in value, then so has your repayment figure to the government. That'll eat into your profits when you come to move on, but could be mitigated by paying that section of the loan off sooner rather than later... I guess.
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Impreza WRX STi
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deano87
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Registered: 21st Oct 06
Location: Bedfordshire Drives: Ford Fiesta
User status: Offline
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