First-time buyers under 40 offered 20% Discount!

How nice of the Tories to offer such a scheme. Homes for everyone!

http://www.dailymail.co.uk/news/article-2771380/20-cent-home-Tories-offer-time-buyers-40-special-discount.html

im over 40, been working ard for 15 years and still cant afford a house...what about me?

They're getting desperate. I've been around alot of message boards this morning and most of the tories appear to be saying growth is not needed or necessary. I doubt they'd be saying that if Labour were in government. These tories are rather pathetic.

Social housing.

From the Tories.

Whatever next?

im over 40, been working ard for 15 years and still cant afford a house...what about me?

You've had 40 years to sort yourself out. What have you been doing!

As it stands they might as well just give those FTB 40k.

If I was in a position to buy a house for 160k that was worth 200k, I'd buy it, then immediately sell it for 190k (still cheap you see, would sell quickly), and pocket the difference. Even after the expense of buying and selling, that'd be a quick 25k in your pocket...

As it stands they might as well just give those FTB 40k.

 

If I was in a position to buy a house for 160k that was worth 200k, I'd buy it, then immediately sell it for 190k (still cheap you see, would sell quickly), and pocket the difference. Even after the expense of buying and selling, that'd be a quick 25k in your pocket...

What if the terms of the offer meant that you couldn't sell it for five years?

Would you still take the chance?

As it stands they might as well just give those FTB 40k.

 

If I was in a position to buy a house for 160k that was worth 200k, I'd buy it, then immediately sell it for 190k (still cheap you see, would sell quickly), and pocket the difference. Even after the expense of buying and selling, that'd be a quick 25k in your pocket...

Its very likley to have a clause which states it can only ever be sold with a 20% discount, they have been around for several years.

What if the terms of the offer meant that you couldn't sell it for five years?

 

Would you still take the chance?

I suppose they could put in a clause that would claw back the discount if you sold. A clause to stop you selling wouldn't be enforceable.

---------- Post added 27-09-2014 at 09:39 ----------

Its very likley to have a clause which states it can only ever be sold with a 20% discount, they have been around for several years.

That doesn't sound quite right, a 20% discount on what, the market value, the asking price?

Very easy to get around, just 'value' the house at 20% more, and then apply the discount. It's not like house valuations are done by anyone actually qualified or in any scientific way...

If I had a house for sale I wonder sell under 20% of the market value

I suppose they could put in a clause that would claw back the discount if you sold. A clause to stop you selling wouldn't be enforceable.

 

---------- Post added 27-09-2014 at 09:39 ----------

 

 

That doesn't sound quite right, a 20% discount on what, the market value, the asking price?

 

Very easy to get around, just 'value' the house at 20% more, and then apply the discount. It's not like house valuations are done by anyone actually qualified or in any scientific way...

In that case how do you know the £160K house was ever worth £200K and could be resold immediately for £190K.

If I was in a position to buy a house for 160k that was worth 200k, I'd buy it, then immediately sell it for 190k (still cheap you see, would sell quickly), and pocket the difference. Even after the expense of buying and selling, that'd be a quick 25k in your pocket...

Hmmm, so what they're saying is that builders will be allowed to develop on sites that you'd have to be desperate to want to live on, in sub-standard housing. So they'll be putting portacabins on industrial wasteland. No wonder they'll be cheap!

It does make sense I guess to free up land that would otherwise be out of bounds for housing development. Will it make a dent in the overriding problem which is that house prices are out of kilter with earnings? Cameron would have to do a great deal more to address this, but he'll never want to risk putting half the country into negative equity.