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andrewheywood

Joined: 09 Dec 2004
Posts: 17

Posted: Fri Dec 17, 04 9:26 am Post subject: community living

I was reading the thread "What can you get for 200K" well not that much these days.

I have also reviewed all types of properties - usually from the Scotmans property and various Scottish property outlets and I would say for 200K - no much at all, 400K - good sized property for a family maybe 5acres attached, BUT for 600K you get much much more - maybe 3 or 4 building and large house and 20+ acres access to rivers / lochs.

My point is that 3 families each with 200K to spend sharing a 600K property they will have a better deal than a single 200K property.

The big question I guess is : can you get 3+ families working and living together as a community especially in today's self orientated society.

sean
Downsizer Moderator

Joined: 28 Oct 2004
Posts: 42219
Location: North Devon

Posted: Fri Dec 17, 04 9:31 am Post subject:
I think it's just about possible. The problems with these things seem to arise when someone wants to leave: do you buy them out? what's the position on selling part of a property to another person? And yu would to get on really, really, really well. I wouldn't fancy it myself.

Jonnyboy

Joined: 29 Oct 2004
Posts: 23956
Location: under some rain.

Posted: Fri Dec 17, 04 9:44 am Post subject:
I can't see why it wouldn't work. You get three totally different familes together in a row of terraces so why not three families with common aims? I guess as long as the houses are detached it wouldn't be a problem at all.

Treacodactyl
Downsizer Moderator

Joined: 28 Oct 2004
Posts: 25795
Location: Jumping on the bandwagon of opportunism

Posted: Fri Dec 17, 04 9:46 am Post subject:

I've often thought about this, a sort of commune. I would be very interested if it has ever worked but I doubt we would be able to get on as we don't general get on with people! (Although I've not actually met anyone apart from my OH that is interested in anything to do with downsizing/smallholding etc.)

A better bet could be to buy a large property or a farmhouse and barn and split into two or more properties. Perhaps the best bet would be for someone to buy the properties and rent out part. Then at least if something goes wrong someone would have the final decision?

It could be ideal as there would be more people to look after any animals if one family went away.

Last edited by Treacodactyl on Fri Dec 17, 04 9:46 am; edited 1 time in total

sean
Downsizer Moderator

Joined: 28 Oct 2004
Posts: 42219
Location: North Devon

Posted: Fri Dec 17, 04 9:46 am Post subject:
But you would be better off managing the land in common, surely, which means a rather closer relationship than I need to have with my neighbours.

Behemoth

Joined: 01 Dec 2004
Posts: 19023
Location: Leeds

Posted: Fri Dec 17, 04 10:00 am Post subject:
ME and some friends briefly looked into this but there were all sorts of complications re agreements and guarentees if one of you wanted to leave, especially if youwere borrowing money as a group. Having said that if you go in as cash buyers and have a firm and legal agreement in place about what happens in that eventuallity there's no resons not to give it a go.

scarecrow

Joined: 15 Dec 2004
Posts: 115
Location: Manchester, Up North

Posted: Fri Dec 17, 04 10:05 am Post subject:
I heard a story on the radio about mortgages which were specifically aimed at house shares. All the legal agreements and everything was included. It was being billed as a solution for first time buyers to get on the ladder, but I can't see why a communal far,/smallholding would be any different. I'll see if I can find any info out.

scarecrow

Joined: 15 Dec 2004
Posts: 115
Location: Manchester, Up North

Posted: Fri Dec 17, 04 10:07 am Post subject:

Found it...

Britannia offers house-share loan

Graduates and professionals are being targeted
Groups of up to four friends will be allowed to borrow three times their salary each in order to buy a home, under a mortgage launched on Thursday.
The 'share to buy' mortgage, from the Britannia Building Society, is aimed at young professionals and graduates.

The idea is to maximise the amount these people can borrow to buy a home.

However, consumer groups warned that even people desperate to get on the property ladder should exercise "extreme caution" over the mortgage.

According to Britannia the mortgage is aimed at "twenty something city dwellers" who can't afford to buy property on their own and are forced to rent.

Needs catered

A single person is often allowed to borrow three or four times their salary to buy a home.

This mortgage may appeal to some people desperate to buy property but it is fraught with risk

Naomi Newman Consumers' Association

As a result, a single person on a salary of �24,000 would be able to borrow between �72,000 and �96,000, not enough to afford even a one-bedroom flat in many UK cities.

But under the Britannia mortgage a single person earning �24,000 teams up with three other people earning the same wage would in theory be able to borrow �288,000.

Tim Franklin, Britannia Building Society spokesman, said that the mortgage was catering to a very real need.

"Even with a sizeable city income these young people are struggling to purchase a home at big city prices, particularly with student debts to clear," Mr Franklin said.

"With many young people rent to a landlord is money down the drain, it is becoming more acceptable for friends to club together in order to purchase a property," he said.

Credit risk

But Naomi Newman, a spokeswoman for the Consumers' Association, urged caution.

"This mortgage may appeal to some people desperate to buy property, but it is fraught with risk," she said.

"What happens if people fall out or one person wants to move out? It can be financially draining to sell a house.

"This is the biggest financial commitment they are ever likely to make. Are they happy taking on up to three other people's lives and complexities?"

Ray Boulger, technical director at mortgage advisory firm Charcol, added to the Consumers' Association warning.

"If one borrower goes into arrears the credit record of the people who share the mortgage will be adversely affected," he said.

tahir

Joined: 28 Oct 2004
Posts: 45674
Location: Essex

Posted: Fri Dec 17, 04 10:09 am Post subject:
An interesting thought, but you've got to have some kind of relationship haven't you?

jema
Downsizer Moderator

Joined: 28 Oct 2004
Posts: 28238
Location: escaped from Swindon

Posted: Fri Dec 17, 04 10:20 am Post subject:
search ofr hte Findhorn thread on this forum, and you will see a few more thoughts iabout this sort of thing. jema

alison
Downsizer Moderator

Joined: 29 Oct 2004
Posts: 12918
Location: North Devon

Posted: Fri Dec 17, 04 12:18 pm Post subject:
It could definately work, but there would have to be a lot in writing, so if it does go sour then peoples financial investments are protected. Having a definate time scale would also help, so either then one party can move, or find a replacement, or the whole project carries on with renewed aims.

andrewheywood

Joined: 09 Dec 2004
Posts: 17

Posted: Fri Dec 17, 04 3:53 pm Post subject:
I guess all the people would have to spend a lot of time together and have discussions before any commitment was made. Think of the time you've gone on holiday with a good mate when you come back they are NOT your friend anymore! But if the people met on a forum this like - then you have a start for a common principle to bind the community together.

tahir

Joined: 28 Oct 2004
Posts: 45674
Location: Essex

Posted: Fri Dec 17, 04 3:56 pm Post subject:
Maybe, I don't think it'd be my cup of tea, but then before this place happened I didn't think I'd ever be involved in running a not for profit website....

Northern_Lad

Joined: 13 Dec 2004
Posts: 14210
Location: Somewhere

Posted: Fri Dec 17, 04 4:00 pm Post subject:
It does sound like a daunting prospect, but if you grouped together to buy an estate, then couldn't the land and property then be split up and you'd live like neighbours?

tahir

Joined: 28 Oct 2004
Posts: 45674
Location: Essex

Posted: Fri Dec 17, 04 4:03 pm Post subject:
That has happened in some crofting communities in Scotland, Sarah (or someone) might know more...

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