A word of warning on buying council houses

[Plain Talker]

Only if you could afford a sizeable deposit and could take on a larger mortgage. Buying a council house is for many people the only way to afford to buy a house. And I still don't believe you when you say you would rather pay rent for the rest of your life than own if within a 15/20 year (or less) period.

 

If it's the "only way someone can afford to buy a house", wouldn't that then just scream "Actually, they can't really afford to buy"?

 

When you think that the person who owns the property then becomes responsible for every last bit of the maintenance, up to and including re-roofing, replacing windows, shoring up walls, remedying subsidence... etc. etc, and you find that many people haven't budgeted for this sort of expenditure.

 

People think "Oh, I've bought my house. Bargain!" they don't think beyond that, to the situation where "Oh i need to budget for a leaky roof", or, "I need to budget for the pointing being re-done..." and what about the general day-to-day upkeep of the property? If the windows or doors are not UPVC replacements, for example, you'll have to have them painted every so often.

 

With renting, if something goes wrong, the landlord should rectify it. (unless it's deliberate damage).

 

I know I'd far rather follow my mother and father's philosophy of not over-reaching yourself, financially. They rented, as do I.

 

I asked my late mother why they hadn't bought a property, and she replied "Because I didn't want us to live like some folk we know... all 'Net curtains and no carpets'... 'Big house and cabbage soup'!".

 

I think that's a realistic outlook. I remember the case which hit the front pages of the local rag, a couple of years ago, when a family were having their maisonette repossessed because they had taken out a small mortgage to buy it (I think they were only going for about 20/ 25 thousand pounds at the time).

 

Because the family were classed as "Sub-prime" borrowers, their high mortgage interest rate reflected their high risk of inability to pay.

 

They then started demanding that the council rehouse them as "homeless". Not "We could not afford the mortgage, and should not have taken it on in the first place" or "Had we continued renting, rather than buying this property, we probably would not have got into such a tangle, financially... We had a responsibility to think ahead, and keep a roof over the heads of our children!"

[Benedictine]

If it's the "only way someone can afford to buy a house", wouldn't that then just scream "Actually, they can't really afford to buy"?

 

When you think that the person who owns the property then becomes responsible for every last bit of the maintenance, up to and including re-roofing, replacing windows, shoring up walls, remedying subsidence... etc. etc, and you find that many people haven't budgeted for this sort of expenditure.

 

People think "Oh, I've bought my house. Bargain!" they don't think beyond that, to the situation where "Oh i need to budget for a leaky roof", or, "I need to budget for the pointing being re-done..." and what about the general day-to-day upkeep of the property? If the windows or doors are not UPVC replacements, for example, you'll have to have them painted every so often.

 

With renting, if something goes wrong, the landlord should rectify it. (unless it's deliberate damage).

 

I know I'd far rather follow my mother and father's philosophy of not over-reaching yourself, financially. They rented, as do I.

 

I asked my late mother why they hadn't bought a property, and she replied "Because I didn't want us to live like some folk we know... all 'Net curtains and no carpets'... 'Big house and cabbage soup'!".

 

I think that's a realistic outlook. I remember the case which hit the front pages of the local rag, a couple of years ago, when a family were having their maisonette repossessed because they had taken out a small mortgage to buy it (I think they were only going for about 20/ 25 thousand pounds at the time).

 

Because the family were classed as "Sub-prime" borrowers, their high mortgage interest rate reflected their high risk of inability to pay.

 

They then started demanding that the council rehouse them as "homeless". Not "We could not afford the mortgage, and should not have taken it on in the first place" or "Had we continued renting, rather than buying this property, we probably would not have got into such a tangle, financially... We had a responsibility to think ahead, and keep a roof over the heads of our children!"

 

It is certainly wise to budget for repairs and other expenditure, but if you do the maths in most cases it is absolute folly not to buy. Let's take a very rough look at my situation for a minute discounting inflation costs etc, even if the rent is rising faster (7% per annum) and the mortgage rate is fixed for 3 year.

 

Current house value £62,500. Cost to buy due to discount £35, 000 (14 years living at the property - I have already paid around 50k).

 

Rent costs £350 per month (for life). Annual cost = £4, 200.

Mortgage costs £220 for 20 years. Annual cost = £2, 640.

 

Now that is a saving of £1560 per year. Over a 20 year period that is a saving of £32, 500 with no further payments. Whereas the rent, at current values, continues until retirement approximately for another 15 years, so that's an extra £63, 000, for nothing.

 

Total cost to buy £53, 000.

Total cost to rent £147, 000.

 

Yes there are potential repairs/improvements to find there, but if you are sensible and put some of that £100k odd saving away then that should cover it.

 

Besides the last time I desperately needed help i.e. my kitchen was 6 inches deep with water I phoned Kier and it was 'not an emergency' cheers for that, so ended up sorting it myself anyway and that is not the first time I have paid for repairs myself either far from it.

 

So no thanks, I do not want to rent.

[chem1st]

It is certainly wise to budget for repairs and other expenditure, but if you do the maths in most cases it is absolute folly not to buy. Let's take a very rough look at my situation for a minute discounting inflation costs etc, even if the rent is rising faster (7% per annum) and the mortgage rate is fixed for 3 year.

 

Current house value £62,500. Cost to buy due to discount £35, 000 (14 years living at the property - I have already paid around 50k).

 

Rent costs £350 per month (for life). Annual cost = £4, 200.

Mortgage costs £220 for 20 years. Annual cost = £2, 640.

 

Now that is a saving of £1560 per year. Over a 20 year period that is a saving of £32, 500 with no further payments. Whereas the rent, at current values, continues until retirement approximately for another 15 years, so that's an extra £63, 000, for nothing.

 

Total cost to buy £53, 000.

Total cost to rent £147, 000.

 

Yes there are potential repairs/improvements to find there, but if you are sensible and put some of that £100k odd saving away then that should cover it.

 

Besides the last time I desperately needed help i.e. my kitchen was 6 inches deep with water I phoned Kier and it was 'not an emergency' cheers for that, so ended up sorting it myself anyway and that is not the first time I have paid for repairs myself either far from it.

 

So no thanks, I do not want to rent.

 

You also have to factor in the cost of the rent rises. Affordable housing rents have risen above RPI inflation every year for a decade. And will continue to do so up until 2015, it has become increasingly unaffordable and becomes even more unaffordable still!

[MrSmith]

If it's the "only way someone can afford to buy a house", wouldn't that then just scream "Actually, they can't really afford to buy"?

 

When you think that the person who owns the property then becomes responsible for every last bit of the maintenance, up to and including re-roofing, replacing windows, shoring up walls, remedying subsidence... etc. etc, and you find that many people haven't budgeted for this sort of expenditure.

 

People think "Oh, I've bought my house. Bargain!" they don't think beyond that, to the situation where "Oh i need to budget for a leaky roof", or, "I need to budget for the pointing being re-done..." and what about the general day-to-day upkeep of the property? If the windows or doors are not UPVC replacements, for example, you'll have to have them painted every so often.

 

With renting, if something goes wrong, the landlord should rectify it. (unless it's deliberate damage).

 

I know I'd far rather follow my mother and father's philosophy of not over-reaching yourself, financially. They rented, as do I.

 

I asked my late mother why they hadn't bought a property, and she replied "Because I didn't want us to live like some folk we know... all 'Net curtains and no carpets'... 'Big house and cabbage soup'!".

 

I think that's a realistic outlook. I remember the case which hit the front pages of the local rag, a couple of years ago, when a family were having their maisonette repossessed because they had taken out a small mortgage to buy it (I think they were only going for about 20/ 25 thousand pounds at the time).

 

Because the family were classed as "Sub-prime" borrowers, their high mortgage interest rate reflected their high risk of inability to pay.

 

They then started demanding that the council rehouse them as "homeless". Not "We could not afford the mortgage, and should not have taken it on in the first place" or "Had we continued renting, rather than buying this property, we probably would not have got into such a tangle, financially... We had a responsibility to think ahead, and keep a roof over the heads of our children!"

 

I also know people like that; they are still working hard to pay their rent, whilst take I take it easy because my house is paid off.

I do agree though, that if you can get a council house instead of buying, it would be much cheaper because of the massive subsidies they get.

[Ms Macbeth]

I also know people like that; they are still working hard to pay their rent, whilst take I take it easy because my house is paid off.

I do agree though, that if you can get a council house instead of buying, it would be much cheaper because of the massive subsidies they get.

 

For many of us getting a council house wasn't an option. In the 70s, if you dared to move away from your home town (like my husband and I did), even getting on a council list somewhere new was difficult. Many of us had no option but to buy privately. I have always understood why individuals bought their council homes, although I remember when a highly paid manager of mine bought his in the 80s. I thought that was wrong as he could have bought privately and freed it up for people on much lower incomes, but the discount was the big attraction.

 

Through the hard years of high interest rates, we held on to our home. We sold up before retirement, and bought the one we are in now to be mortgage free. As we are just over the limit for means tested benefits, it's the best solution for us. However, if we were entitled to housing benefit and council tax benefit, being in a rented home would be more advantageous as we'd get all the repairs and maintenance carried out.

 

There's no 'one size fits all'. Some people who have bought council properties have regretted it, especially if they bought flats and have ended up having to pay for improvements to the block. All in the deeds, but often not considered. Others have seriously made a killing. Houses in places such as Worrall, where most have been sold, fetch prices almost equal to those built for private sale. And I haven't even mentioned London.

[gnvqsos]

For many of us getting a council house wasn't an option. In the 70s, if you dared to move away from your home town (like my husband and I did), even getting on a council list somewhere new was difficult. Many of us had no option but to buy privately. I have always understood why individuals bought their council homes, although I remember when a highly paid manager of mine bought his in the 80s. I thought that was wrong as he could have bought privately and freed it up for people on much lower incomes, but the discount was the big attraction.

 

Through the hard years of high interest rates, we held on to our home. We sold up before retirement, and bought the one we are in now to be mortgage free. As we are just over the limit for means tested benefits, it's the best solution for us. However, if we were entitled to housing benefit and council tax benefit, being in a rented home would be more advantageous as we'd get all the repairs and maintenance carried out.

 

There's no 'one size fits all'. Some people who have bought council properties have regretted it, especially if they bought flats and have ended up having to pay for improvements to the block. All in the deeds, but often not considered. Others have seriously made a killing. Houses in places such as Worrall, where most have been sold, fetch prices almost equal to those built for private sale. And I haven't even mentioned London.

 

In most cases council houses were built to higher standards and sometimes attract a premium.

[MrSmith]

For many of us getting a council house wasn't an option. In the 70s, if you dared to move away from your home town (like my husband and I did), even getting on a council list somewhere new was difficult. Many of us had no option but to buy privately. I have always understood why individuals bought their council homes, although I remember when a highly paid manager of mine bought his in the 80s. I thought that was wrong as he could have bought privately and freed it up for people on much lower incomes, but the discount was the big attraction.

 

Through the hard years of high interest rates, we held on to our home. We sold up before retirement, and bought the one we are in now to be mortgage free. As we are just over the limit for means tested benefits, it's the best solution for us. However, if we were entitled to housing benefit and council tax benefit, being in a rented home would be more advantageous as we'd get all the repairs and maintenance carried out.

 

There's no 'one size fits all'. Some people who have bought council properties have regretted it, especially if they bought flats and have ended up having to pay for improvements to the block. All in the deeds, but often not considered. Others have seriously made a killing. Houses in places such as Worrall, where most have been sold, fetch prices almost equal to those built for private sale. And I haven't even mentioned London.

 

I agree entirely, we were in the same situation and would never have been given a council house. I agree with right to buy but not how it is done or how the discount is worked out.

 

My kids want a house but for now can't afford one, whilst a friend of ours that lives in a council house also has her two kids with babies in council houses. Three council houses occupied by the same family seams a little unfair when other people can’t get council houses.

[MrSmith]

In most cases council houses were built to higher standards and sometimes attract a premium.

 

The big selling point to me with an ex council houses is usually the size of the garden, new build, no garden.

 

 

The same money I spent on my house ex council house would only have bought a smaller private house with a significantly smaller garden. Right to buy policy gave me the opportunity to buy something I would have never been given or been able to buy.

 

The only down side is that 8 door away is the only council tenant on the street, they stand out like a sore thumb because theirs is the only garden full of 4 foot weeds, and a gaggle of foul mouthed kids.

[ricgem2002]

 

My kids want a house but for now can't afford one, whilst a friend of ours that lives in a council house also has her two kids with babies in council houses. Three council houses occupied by the same family seams a little unfair when other people can’t get council houses.

if they have been given a house through the proper channels they are quite rightly entitled to it why should your kids be given priority:huh:

[MrSmith]

if they have been given a house through the proper channels they are quite rightly entitled to it why should your kids be given priority:huh:

 

I didn't say they should be given priority, but a system that rewards a family that doesn't work with three free houses, whilst keeping houses out of the reach of many workers, is worthy discussion and complaint.

 

8 bedrooms, for 3 adults and two children isn't right when other people ar strugling to find an house.