Another Waste of Tax Payers funds

[kintangoman]

First we had Maggie Thatcher giving away Council houses for 'FREE', then now we have David Cameron handing over money to banks so prospective home buyers only have to provide 5%? WHY
http://www.bbc.co.uk/news/uk-politics-24319583

His comments:
He added: "If we don't do this it will only be people with rich parents to help them who can get on the housing ladder - that is not fair, it is not right."

Well, if Maggie had maintained council housing stocks as opposed to giving them away for free, we wouldn't have 35 year olds living with their parents.

[Mooncat]

Brilliant, more houses for people without the means, more defaults. My building society has had to stop taking savings as they have enough money for house-buyers. They don't lend more than 70% LTV.

[kellys_eye]

I'm totally convinced that Government policy is designed to take us over the edge, ruin the economy so thoroughly that the only 'escape clause' left to us is full integration (fiscally and politically) with the EU. Government can't convince us being an integral part of the EU is what we 'need' so they're prepared to ruin us all to achieve their aims.

[big-all]

in theory there will be no money from the taxholder
the house is say £200.000
deposit required say 5%
building society dont like lending more than 80%
so building society will lend 95% in line with government promise to pay the other 15% if they fail
so if it fails as long as the house is worth £190.00 the government is not out off pocket

[joinerjohn]

House prices have been artificially inflated for years though. Do many of us really believe a plot of land and the cost of building a house on it is anywhere near the price that new builds are selling for? Some houses being built near me are selling for near on £100,000. I reckon the land cost the builders, probably something near £15,000 per plot and the houses they're building, probably no more than £40,000 to build.
My father bought his (brand new) bungalow in 1969 for £4000. Based purely on RPI, his house would be worth around £55,000. He sold it last year for £86,000. £31.000 more than it would be worth, using RPI as the inflation figure.

[big-all]

yes i fully agree both the cons and labour have sold social housing cheap
the cons at 75% discount and labour more like 35% on average but not sure
this has had several outcomes
people have bought there council houses
some have come a cropper when "repairs" have been charged to owners on a leasehold flat
or owners now dont have the funds for repairs when things go wrong previously covered by there rent
or new home owners cant go on strike because they now have a mortgadge to pay

so many people where sold there council houses cheap as a step up many have flourished but many have crashed and become worse off in a bad way because they have no idea whats happening with "indipendant advisor " charge a fee to "help "you house sale

[kintangoman]

big-all, the problem is if the home owner defaults and the house is repossessed, chances are it will take six months or more to have home owner evicted. By that time they may choose to trash the house?
House will then have to be auctioned.
As we all know, even if the house was 'bought' for £200,000 and is now worth £210,000, at auction it may only fetch £180,000.
The government will have to pay the shortfall to the banks as they guaranteed the sale. So in effect, tax payer would've footed the bill?
I THINK???

[big-all]

why would they trash the house ??
these are not irresponsible tenants who have no vested interest these are home owners who have been made to jump through hoops to get a mortgage
why would they reduce the value off the house they are trying to sell they get more for the house than they borrowed its money in there pocket
if it goes for less they have to pay the shortfall
the chances are it will be several months down the road before they get into trouble and remember the first payment is on activation off the mortgage

i do not for one min think this is a good idea it will just cause further overheating in the housing markets pushing more people out who dont qualify

[Razor]

why would they trash the house ??

You've not been in many repos then BA?

[big-all]

why would they trash the house ??

You've not been in many repos then BA?

they must be fairly thick unless they are fairly destitute the lender will come after them for the money

[steviejoiner74]

[quote="joinerjohn"]House prices have been artificially inflated for years though. Do many of us really believe a plot of land and the cost of building a house on it is anywhere near the price that new builds are selling for? Some houses being built near me are selling for near on £100,000. I reckon the land cost the builders, probably something near £15,000 per plot and the houses they're building, probably no more than £40,000 to build.
My father bought his (brand new) bungalow in 1969 for £4000. Based purely on RPI, his house would be worth around £55,000. He sold it last year for £86,000. £31.000 more than it would be worth, using RPI as the inflation figure. [/

No danger can you build a new house for anything close to 40k!! The plots they will get cheap as chips yeah but 40k to build a house!

[BillyGoat]

All I see is friends moaning about house prices and how hard-done they all are.

They want 95 or 100% or even 120% mortgages, thinking that the answer is always to build newer houses paid for by the 'government' and sold to buyers, not land lords and companies for rental.

When I go out for walks, I see SO many empty houses, boarded up, needing repairs, but that's too much work for them. They have no savings, they say. These should be taken care of and communities reinstated before new houses are built.

No sooner do they finish talking about having no money for a deposit, do they then talk about:

- Their new iPhone 5s (some 1600 over 2 years)
- Their new TV
- Their new cars
- Their clothes and shopping sprees
- Their 2 holidays a year, all inclusive
- They city apartment rent

I don't feel sorry for them at all, not even a bit. I started saving money when I was 16 and working, so did my wife. I think by the time I was 21 I had around 20k saved towards my first place and the missis had a considerable amount too. I think people need to sort themselves out rather than demanding everything be handed to them on a plate.

BG

[BillyGoat]

Well, if Maggie had maintained council housing stocks as opposed to giving them away for free, we wouldn't have 35 year olds living with their parents.

I missed this in my major moan, but these are the people I refer too. Granted, not all of them, but most of the people know in this position go out every single day to get away from their parents that so graciously put them up.

If you spend all your money going out, how can you ever save? Sucks balls in the short term, but long term dictates some common sense being employed.

BG