Black Friday needs to have an effect in the UK

The US Retail sector enthusiastically braces itself for a horde of bargain hunters

Today, Black Friday, so-called as it is the day when a vast swathe of the retail sector head out of the red and into the black, may make an economic turning point in the run up to Christmas. With half of the entire US population, some 152 million people, expected to hit the shops over the course of this weekend, up 10% on last year- the spike in trade could mean good news across the economy.

Black Friday usually sees shopping chains throw open their doors in the early hours. But this year that rush has crept into Thanksgiving Day itself. The effect isn’t limited to the US however, as Britain’s biggest and most well-known retailers have started “mega sales” early this year in an attempt to boost Christmas shopping amongst cash strapped shoppers. Amazon, in the run up to Black Friday is offering bargains for its ‘Black Friday Deals Week’ and Comet are offering a 5day Frenzy super sale. In effect this has turned black Friday into one of the biggest online shopping days of the year.

In the run up to Christmas consumers are expected to spend a whopping £7.75 billion on online shopping according to e-tailing trade association IMRG. An estimated £13 billion will be spent across all sectors online, however figures on the high street are expected to fall by 2.1 per cent in spite of so many sales starting early. It is clear that this year’s success stories will be told with a distinctly online lilt.

Kevin Flood, CEO of the leading social shopping website Shopow said, “Retailers that were desperately in need of a reversal of their fortunes have found that they now have an encouraging platform on which to build in the run up to Christmas. High street stores have had to pull out all the stops to make their shops attractive by reducing prices early and creating imaginative promotions to increase footfall and more activity at the tills. It is still far from plain sailing and there is still a lot of pressure on retailers and as long as business and consumer confidence remains low, the battle will continue to persuade shoppers to return in their droves.

“Online activity has emerged as a vital area that will only continue to grow in importance over Christmas. We are expecting a significant amount of Christmas activity online and those who have introduced innovative shopping tools that make shopping easier and more cost effective will take capitalise.”

For the past six years, a combination of increasingly early opening times and an array of discounts have helped make the day after Thanksgiving the biggest shopping day – and cement the term “black Friday.” It will be nonetheless difficult for chains that have struggled with sales declines lately, including the likes of Topshop, to see a benefit from thoroughly deep discounting. Many have opted instead to move into the social shopping environment in order to drive sales through peer to peer reviewing and sustainable discounting.

Social shopping has emerged as an exciting trend in online retailing as many of these high street stores look to engage consumers. It involves the use of social networking to share recommendations, share discounts, post reviews and ask for advice on products before purchase.

Mike Harty COO of Shopow (www.shopow.co.uk) said “Regular web shoppers are now empowered to talk about their purchases in an honest way. Social shopping enables shoppers to use their trusted networks to make informed decisions but also makes online shopping more interactive, enjoyable and indeed sustainable.”

New Standard For Digital Banking As Citibank Launches iPad App

Furthering CEO Vikram Pandit’s vision to become the world’s digital bank, Citibank today unveiled its first-ever consumer banking app designed specifically for iPad. Citibank for iPad provides U.S. consumer banking clients with an engaging, visually rich tool to track, analyze and plan their finances.

“Our iPad app is all about listening to our clients and understanding that they need their digital banking experience to be more engaging and dynamic – beyond the standard static tables you find with other iPad apps, ” said Tracey Weber, Head of Internet and Mobile Banking, North America Consumer Banking, Citi. “We’re offering a whole new way of banking, with enhanced visuals and interactive tools. We’re focused on continually offering modern solutions that help put ease into our clients’ financial lives, wherever and whenever.”

Citibank for iPad is the first app from a major U.S. bank to depart from traditional ledger-style banking and offer graphs and visual representations of consumer accounts and transactions. The intuitive user interface makes it easy for customers to check balances, control their cash flow, pay bills, transfer funds, access rewards and find nearby Citibank ATMs and branches, all at the touch of their screen.

Unlike other banking apps for iPad that mirror the PC or mobile phone interface, the Citibank app takes advantage of the unique tablet experience to provide users with a visually revealing, insightful interface along with a host of interactive new features.

More than just an account management tool, the app allows consumers to more deeply engage with their experience, from basic banking to more in-depth financial management. Advanced features allow users to view information and take actions that will make managing their finances easier, including:

* Plan cash outflows with the help of a unique interactive chart of past and future payments and transfers
* Analyze personal spending habits through automatically generated, customizable charts of payee spending
* Compare personal spending habits with general consumer data, filtering by location, age group, income bracket and purchase category

Citibank for iPad also offers access to resources and information that help users manage their financial lives, including direct access to exclusive, continually updated content from Citi Personal Wealth Management and Women & Co., a service of Citibank. Consumers can also use the app to reach customer service directly. Citi is the only major U.S. bank to offer direct access to its Twitter customer support option via its tablet app.

To Download or Learn More:

* Citibank for iPad is available free from the App Store(SM) on iPad or at www.itunes.com/appstore/.
* View a demo of Citibank for iPad on YouTube at: http://citi.us/okRNbo.
* To learn more about Citi, please visit www.citi.com or www.citigroup.com.

Women & Co. is a vehicle from Citibank for insightful women to build their financial knowledge, bolster their confidence and create financial strategies that will help them achieve their goals. Through access to education, resources, and a community of financially minded women, Women & Co. is Where Wisdom, Wealth and Women Meet. Sign up for free at womenandco.com.

Why the Economy Could Take Another Downturn—and What the Average Investor Can Do To Protect Themselves

Why the Economy Could Take Another Downturn—and What the Average Investor Can Do To Protect Themselves

The following article was written by Daniel A. White, CLU, ChFC , President, Daniel A. White & Associates:

To the casual observer, the economic headlines look promising. To be fair, there are a few positive indicators. Unemployment figures are gradually improving, retail sales are on the upswing, corporate profits are up and consumer confidence is surging. Unfortunately, the reality is much more complicated. To many financial advisors and investment professionals–myself included at Dan White and Associates–there are reasons to be cautious. A closer look at historical comparisons and advanced metrics behind the rosy headlines reveal cause for concern.

Trouble looming?

One of the biggest underlying reasons I suspect we might be headed for another 2008-type bubble in the not-too-distant future—is my skepticism regarding the pace of the current recovery and the factors driving it. Standard and Poor’s (S&P) earnings are on pace to hit $91/share by August; up nearly 13 fold from the March of 2009 lows of $7/share and surpassing the all-time high of $90/share in the 3rd quarter of 2007. There is nothing wrong with profits, but why are we seeing those profits?

The short answer is pretty simple: the government is printing more money as part of a strategy called Quantitative Easing (QE2); monetizing the national debt by purchasing securities and turning government bonds into circulating money.

So what happens when the government turns off the spigot? We can get a pretty good idea by looking at other government incentive programs. Whether it was a home-buying tax credit or a “Cash for Clunkers” promotion, the markets dropped off sharply when programs ended. It’s also worth noting that after the last round of Quantitative Easing–in the months after April 2010–the market plunged.

PE ratios and commodity oddities

Since QE2 began last August, the price of Silver is up 70%, crude oil and coal are up close to 40%, and a number of other commodities are up sharply. And when you see the U.S. Dollar down 10.6% at the same time, that’s a recipe for trouble.

Perhaps most concerning, is the historical pattern of the price to earnings (P/E) ratio and what it means to investors. When you get in the market at a low P/E ratio, things tend to work out well, and when you get in when the P/E ratio is high, that doesn’t bode well. The current S&P 500 P/E 10–is at about 24. It has only been at 24 a handful of other times in history.

What can you do?.

* Be conservative. Investing in healthy companies with large cash reserves is fairly safe, but commodities and other risky assets are a bad idea.
* Plan ahead, be cautious and don’t get overextended. The first sign of trouble is likely to be short-term interest rates starting to tick up. If you see that happening, reduce your exposure.
* If you are retired or almost retired, all of this is particularly relevant. Be extremely vigilant and pay close attention to the subtleties of the marketplace.

Founded in 1987, Glen Mills, Pa.-based Daniel A. White & Associates is a financial planning firm specializing in asset protection and transitional and retirement planning. Through a team of knowledgeable experts, Daniel A. White & Associates provides comprehensive financial planning for retirees and pre-retirees in estate planning, asset protection, wealth management and wealth transfer strategies.

www.danwhiteandassociates.com

Revealed: the Brits are a Nation of Hoarders

There is more than £2.5 billion worth of unwanted goods cluttering homes across the UK, confirming that the Brits are a nation of hoarders.

The recent survey by Cash Converters identified that more than 75% of UK households have redundant items taking up valuable living space, when they could be earning the owners money.

Finances are still tight for many families across the country, so with the potential to unlock hundreds of pounds worth of cash by getting rid of unused items, we would be foolish not to. DVDs, Mobile Phones and obsolete games consoles topped the list of most unwanted items that are lying dormant in people’s homes.

The UK’s number one retailer of buying and selling pre-owned goods, Cash Converters has more than 190 stores across the UK that offer to buy and sell a wide variety of items, including musical instruments, HiFis, TVs, CDs and DVDs and DIY tools.

David Patrick, chief executive of Cash Converters is staggered at the value that is currently not being unlocked in people’s superfluous belongings. He said: “Almost 13 million homes have admitted to keeping hold of unused items. Often people come into our stores surprised at what we will buy from them not realising that the unwanted items in their homes could be making them money.

“At Cash Converters we’re keen to highlight how you can make money from items you already own, as we all continue to feel the pinch and look for ways to raise some extra cash. It may be you only need some money to tide you over, in which case we offer the option to get your item back, known as a Buyback.

“Buyback is a really straightforward and quick service to use. Customers bring in an item along with some up to date identification; a price is agreed and the customer gets the cash and up to 28 days option to buy back the goods. Of course, if you realise you can live without that old Playstation 3 or the guitar you meant to learn to play but never did, you can simply leave it with Cash Converters.”

For more information visit www.cashconverters.co.uk

Kate Middleton & William Sidelined by Posh & Becks

After all the Royal Wedding fever has died down and with the patter of a little baby Posh on the way, it would seem that the royal couple have been sidelined…

A new survey by House Exchange, the mutual exchange website for social housing tenants, reveals that nearly twice as many Brits said they would rather swap homes and lives with David and Victoria Beckham (13%) than with Kate Middleton and Prince William (7%). The poll shows that it is in fact the glamorous jet-setting lifestyle of the Beckhams that us Brits really hanker after rather than the down to earth, low-key approach favoured by Kate and Wills.

The British public, however, were quite happy to move into some rather Royal properties with Buckingham Palace (12%) and Warwick Castle (10%) coming top of the list of famous House Exchanges, closely followed by Monica’s flat in friends (9%) and Mum and Dad’s House (5%).

The survey results also show that many people are happy in their current homes, especially the over 55s, of which more than half (55%) said they wouldn’t want to swap homes. This is in direct contrast to the 16-24 age group, where only 19% were happy to stay were they were.

Kim Doran, House Exchange Manager, said: “Young people often struggle to find their ideal home due to high rents and difficult lending conditions. However, the situation is much bleaker for social housing tenants who are not on the property ladder. We estimate nearly 500,000 of the UK’s 3.9 million social housing tenants would like to move home but can’t.

“They end up stuck on transfer lists for years and this is why we have developed House Exchange, a mutual house exchange database for social housing tenants anywhere in the UK.”

The House Exchange website currently has around 70,000 properties listed around the UK and makes around 1,000 successful swaps per month. Over half the social housing tenants that sign up have been trying to move for more than two years, yet 80% of tenants using House Exchange find their perfect match within six months, and many move within only six weeks.

House Exchange boasts two exciting features to make it easier for tenants to find their perfect match.

Three way swap

If tenants can’t find a direct swap, they can find a third property to complete the house exchange. A three way home swap is a good way of completing more house exchanges. It also helps more people move into homes that are appropriate for their needs.

Real-time matching

House Exchange matches all properties instantly. This means that when a perfect property match is found, tenants are notified immediately by email.

Visit House Exchange at www.houseexchange.org.uk

7 Burglary Prevention Tips for Your Summer Vacation

Warm weather is finally here, and you might be planning your summer vacation. Here are a few tips — some you might not have thought of — for making sure your possessions are still there when you get back:

1) Do not post about your vacation on Facebook until after you get back. If that takes more discipline than you can muster, at the very least keep your location status off any public social networking pages. Many burglars use these sites to identify “safe” targets.

2) Make your home look lived in. A light on a timer is a great first step. You can buy a small device called “FakeTV” that simulates the light output of a television ($35 at http://www.faketv.com), making it look like you are home watching TV each evening. The effect is so convincing that your neighbors may later ask if you really went on vacation.

3) Don’t leave obvious signs that the house is unoccupied. Stop the mail and paper, or have a neighbor take it in. Arrange for lawn care as needed. And don’t leave notes on the door! (“Dear thieves …”)

4) Make your home hard to get into. You need good locks. Your hidden outdoor key is probably not as cleverly hidden as you think it is. So, get to know your neighbors, and leave the key with them. Let them know you will be gone, and have them keep an eye out during your absence. If you have an alarm system, by all means use it. Amazingly, many people forget to set the alarm. Conversely, do not think that an alarm system makes you invulnerable. Burglars can still cause you a great deal of misery in a smash-and-grab robbery, leaving before the police can respond. Park a car in the driveway, but be sure to take out the garage door opener first.

5) Remove obvious temptations. Take a walk around your property and make sure you cannot see any easily pawned valuables through uncovered windows. Are there any ladders left out, or particularly easy or well-concealed access points?

6) Prepare for the worst. If your computer were stolen, what might the consequences be? For most of us, this would be dire indeed. So, back up and password protect. Make a quick run-through around the house with a video recorder, listing off the valuables. This could save a lot of hassle with the insurance company if you should need to file a claim.

7) Strike the right balance. Only you can make the trade-off between security measures and the burdens they impose. You may wish to place irreplaceable items in a secure location, such as a fireproof safe. This can include expensive jewelry, family photos, and financial records. Your insurance policy is up to date, right? Also, label your possessions with your name. An engraver is best, but a Sharpie is a lot better than nothing.

The good news is that only two out of a hundred homes will be burglarized in any given year. The bad news, and this is intended to jump-start you into a bit of action, is that for those two homes that are burglarized, the effects of the intrusion are often devastating. The average burglary costs $1750, and a whole lot of peace of mind. Ask anyone who has had a break-in; they never look at their home quite the same again.

Security is a mindset, and need not be a great burden. Fortunately, your security measures do not need to be perfect. Most crime is opportunistic, and if the guy down the street failed to take a few simple precautions, his house (poor chap!) is more likely to draw the attention of the thief than yours. And frankly, there are no measures that can stop the most determined criminals. So, just take a few simple steps to improve your odds and peace of mind. It will make your getaway that much more relaxing.

Simon Cowell Joins Sunday Times Rich List. Who's Up and Down This Year.

SIMON COWELL JOINS RICH LIST
MUSIC TOP 10 WITH £200m FORTUNE

KATHERINE JENKINS WITH £13m FORTUNE PIPS CHERYL COLE, WITH £12m, TO HEAD YOUNG MUSIC MILLIONAIRES TOP 20

ADELE AT £6m, FLORENCE WELCH £5m, TAIO CRUZ £5m, ARE NEW ENTRIES IN YOUNG TOP 20

U2 HEAD IRISH MUSIC CHART WITH £455m

X-Factor judge Simon Cowell has amassed a personal fortune of £200m to place him at number six in the annual Music Millionaires Top 50, published in The Sunday Times Rich List 2011 this weekend.

The 23rdannual Sunday Times Rich List – the definitive guide to wealth in Britain and Ireland – is published as an extra 104-page magazine, free with the paper on Sunday.

The Music Millionaires Top 50 is headed by Clive Calder, with a £1,300m fortune made from the sale of Zomba Records in 2002. New entries include AC/DC’s lead singer Brian Johnson, born in Gateshead, who is worth £50m, and Moya Doherty and John McColgan, worth £70m, who own the Irish dance show Riverdance.

Katherine Jenkins, worth £13m – up £2m on 2010, tops the young music millionaires chart of people aged 30 and under ahead of Cheryl Cole, Leona Lewis and Katie Melua, who all have £12m fortunes. The top new entry in the young music millionaires chart is Adele at ninth equal with a £6m fortune. Two more new entries are Taio Cruz and Florence Welch, each worth £5m.

U2 with a combined fortune of £455m, up by £26m from last year – see table below, head the list of Irish music millionaires who appear among Ireland’s Richest 250 in The Sunday Times Rich List 2011.

THE SUNDAY TIMES RICH LIST 2011
TOP 50 MUSIC MILLIONAIRES

Music rank 2011

Music rank 2010

Name

2011 wealth

2010 wealth

Difference
(+/-)

Clive Calder

£1,300m

£1,300m

No change

Lord Lloyd-Webber

£680m

£700m

-£20m

Sir Cameron Mackintosh

£675m

£635m

+ £40m

Sir Paul McCartney

£495m

£475m

+ £20m

Simon Fuller

£375m

£350m

+ £25m

Simon Cowell

£200m

£165m

+ £35m

Sir Elton John

£195m

£185m

+ £10m

Sir Mick Jagger

£190m

£190m

No change

Sting

£180m

£180m

No change

Keith Richards

£175m

£175m

No change

Olivia and Dhani Harrison

£170m

£160m

+ £10m

David and Victoria Beckham

£165m

£145m

+ £20m
13=

Jamie Palumbo

£150m

£150m

No change
13=

15=

Ringo Starr

£150m

£140m

+ £10m
15

15=

Sir Tim Rice

£143m

£140m

+ £3m

Sir Tom Jones

£140m

£135m

+ £5m

Eric Clapton

£125m

£125m

No change

Roger Ames

£120m

£120m

No change
19=

Phil Colins

£115m

£108m

+ £7m
19=

Rod Stewart

£115m

£105m

+ £10m

Barry and Robin Gibb

£110m

£110m

No change

26=

Roger Waters

£105m

£85m

+ £20m

David Bowie

£100m

£100m

No change

Ozzy and Sharon Osbourne

£95m

£95m

No change
25=

George Michael

£90m

£90m

No change
25=

26=

Robbie Williams

£90m

£85m

+ £5m
27=

David Gilmour

£85m

£78m

+ £7m
27=

33=

Brian May

£85m

£75m

+ £10m
27=

26=

Charlie Watts

£85m

£85m

No change
30=

29=

Chris Blackwell

£80m

£80m

No change
30=

29=

Robert Plant

£80m

£80m

No change
30=

Roger Taylor

£80m

£70m

+£10m

33=

Jimmy Page

£75m

£75m

No change
34=

Moya Doherty and John McGolgan

£70m

_

_
34=

36

Chris Wright

£70m

£64m

+ £6m

38=

John Deacon

£65m

£60m

+ £5m

Noel and Liam Gallagher

£63m

£55m

+ £8m
38=

29=

Judy Craymer

£62m

£80m

– £18m
38=

Mark Knopfler

£62m

£62m

No change

38=

Engelbert Humperdinck

£60m

£60m

No change

41=

Nick Mason

£50m

£50m

No change
42=

Brian Johnson

£50m


42=

41=

Van Morrison

£50m

£50m

No change
42=

41=

Sir Cliff Richard

£50m

£50m

No change

44=

Chris Martin and Gwyneth Paltrow

£48m

£45m

+ £3m

44=

John Paul Jones

£45m

£45m

No change
47=

50=

Mick Hucknall

£40m

£35m

+ £5m
47=

50=

Kylie Minogue

£40m

£35m

+ £5m
47=

46=

Bernie Taupin

£40m

£40m

No change
47=

46=

Pete Townshend

£40m

£40m

No change

THE SUNDAY TIMES RICH LIST 2011
TOP 20 YOUNG MUSIC MILLIONAIRES (aged 30 and under)

Young
Music rank
2011

YoungMusic
rank
2010

Name

2011 wealth

2010 wealth

Difference
(+/-)

1=

Katherine Jenkins

£13m

£11m

+£2m

Cheryl Cole

£12m

£10m

+£2m
2=

1=

Leona Lewis

£12m

£11m

+£1m
2=

4=

Katie Melua

£12m

£10m

+£2m

Joss Stone

£9m

£9m

No change
6=

1=

Charlotte Church

£8m

£11m

-£3m
6=

Craig David

£8m

£8m

No change

9=

Paolo Nutini

£7m

£5m

+£2m
9=

New entry

Adele

£6m

_
9=

9=

Lily Allen

£6m

£5m

+£1m
9=

Natasha Bedingfield

£6m

£6m

No change
9=

9=

Duffy

£6m

£5m

+£1m
9=

9=

Amy Winehouse

£6m

£5m

+£1m
14=

9=

Nadine Coyle

£5m

£5m

No change
14=

New entry

Taio Cruz

£5m

_
14=

9=

Sarah Harding

£5m

£5m

No change
14=

9=

James Morrison

£5m

£5m

No change
14=

9=

Nicola Roberts

£5m

£5m

No change
14=

9=

Kimberley Walsh

£5m

£5m

No change
14=

New entry

Florence Welch

£5m

THE SUNDAY TIMES RICH LIST 2011
THE MUSIC MILLIONAIRES IN IRELAND’S RICHEST 250

Irish
Music rank
2011

Irish
Music
rank
2010

Name

2011 wealth

2010 wealth

Difference
(+/-)

U2

£455m

£429m

+£26m

Michael Flatley

£214m

£241m

-£27m

Denis and Caroline Desmond

£185m

£186m

-£1m

Enya

£85m

£85m

No change

Moya Doherty and John McColgan (Riverdance)

£70m

£72m

-£2m

Van Morrison

£350m

£50m

No change
7=

7=

Chris de Burgh

£32m

£31m

£1m
7=

New entry

Bob Geldof

£32m

_
7=

7=

Westlife

£32m

£31m

+£1

The 23rd annual Sunday Times Rich List – the definitive guide to wealth in Britain and Ireland – is published in a special 104-page supplement, which profiles the 1,000 richest people and families in the UK and the 250 richest across Ireland. The list is based on identifiable wealth (land, property, other assets such as art and racehorses, or significant shares in publicly quoted companies), and excludes bank accounts (to which the paper has no access).

The Sunday Times Rich List 2011 is compiled by Philip Beresford, the leading authority on British wealth, and edited by Ian Coxon. Ireland’s richest 250 is compiled by Colm Murphy.

FIRST TIME BUYERS BEWARE: The Shared Equity Con

First time buyers are finding it increasingly difficult to get on the property ladder. Incomes and property prices remain distorted and banks have become increasingly stringent.

With the situation as it is many first time buyers are turning to shared equity housing schemes. Instead of buying the whole of a property you only buy a percentage. The local government housing authority or a building company own the rest. You pay rent on the remaining percentage but the amount you borrow is significantly reduced and so are your mortgage repayments. You also require a smaller deposit.

The government loves the scheme, it helps the construction industry and keeps the property market booming.

As someone looking to get onto the property ladder I had been considering such a scheme. I was therefore appalled when I came across some of the horror stories people have had with shared equity schemes.   I felt it was important that anyone looking into the scheme should be aware of what they are getting into. Here is a selection of people’s experience.  All comments are taken from the evening standard see the full article here and all the other comments as well.
– Marlise, Reading, 01/07/2010

Biggest mistake of my life! I bought a 40% share of a property through Thames Valley Housing Association in 2005. After a couple of years, rent had gone up by almost £200 and service charges sky rocketed, for a very poor service. Due to personal circumstances I had to move to London, to which TVHA gave me permission to rent via the local council. The council tenants did not pay rent for close to a year, and after struggling to pay living expenses in London and Rent/Mortgage on the shared ownership property, I went into serious debt, as well as mortgage debt. TVHA have been extremely unhelpful in this situation. Not making it easy for me to sell my share of the property (the costs of which are ridiculous). I am now unemployed and left to deal with mortgage debt collectors’ calls and harassment from TVHA for their rent. I no longer have an attachment to this property and would love to see it go as it has caused me so much stress, but I am trapped.

 

 

– SR, London E14, 15/04/2010

Biggest mistake of my life wish I had read this four years ago. Desperately need to sell to move closer to a disabled relative, there are errors in the lease preventing me from selling and the housing association are taking their time to sort it out. Paying a fortune in service charges for poor service.

 

 

– Lewis, Southampton – England, 02/03/2010

Very Interesting reading all the comments, only wish the info had been out there 2 years ago before I bought my 40% share. Rent and charges have jumped up by 75% in 2 years, flat has dropped £40,000 in value, can’t afford to increase my share, can’t afford to sell, and now paying more in combined rent and mortgage than I would have if I were privately renting….
Whatever anybody thinks, it is genuinely a mistake to get involved in shared ownership (even in a rising market) believe me!!

– Josh, London, 17/07/2009

 

Hi, I have just bought on shared ownership. This was the only means of myself and girlfriend to get on the ladder. We are paying a good £450 cheaper than renting in that area. Our incomes are low but we still managed to get a 4.5% fixed rate. This was the only option for us. To be honest all the problems are down to lack of research and thought. In a falling climate you will obviously find it hard to sell property. Not only this but we have gone into this scheme planning on staircasing to 100%. I don’t think anyone can say this is worse than renting as I am saving £450 per month to go on more equity.


As a long term I don’t see this as an investment but a foot up. To me it’s less risk of neg equity if circumstances change i.e break up. If you go in to this thinking it’s an easy way then you will find problems every day. As for the overpriced bit. Ours was on the market for 300,000. We got them to go down to 250,000 due to our independent survey we got and they accepted as they knew we would pull out otherwise. This is about 10% cheaper than all 2 beds in the area on the open market.


I think if you look at this as an easy way to own a home by still having the same rights as renting you will be in for a big awakening. I also have friends who have bought and sold on this scheme and because they did their research they have come out with no problems and quids in.
So I part own a 2 bed apartment right on the river in London next to canary wharf for 800pcm inclusive. Bad??!!

– Sarah, London, 09/07/2009

I am in the same situation trying to sell my 45% of shared ownership property to no success.
My rent and service charge has doubled it is just ridiculous! Now in the predicament of taking it off the market to try and gain some equity as if we sold now we would lose so much, however have a baby on the way and need out! Feel completely stuck in this flat, but had nowhere else to live and no deposit so had to go shared ownership! A2 Dominion housing associations are also unhelpful, time wasters and money grabbers. Good luck to anyone trying to get out!


– Gillian, London, 16/07/2009

I too, am in a similar predicament to the other people commenting. After securing a good job in Norfolk I informed my housing trust (Metropolitan Homes) that I needed to sell my 40% share of my one bedroom flat. It has taken them 5 weeks to market the property, a valuation (for which I had to find and pay a surveyor) £15,000 below one estates agents valuation and £30,000 below a second estate agents valuation. They have sent only two people to view in the two weeks since marketing and I now have only 6 weeks till I take up my new post with NHS Norfolk. (I am a nurse)
Everyone recognises that selling a house is stressful but the ‘don’t care’ attiutude of housing associations just makes the whole situation worse!

 

 

– Aji, London, 09/09/2008

The shared-ownership scheme has been around for years and the Government are always attempting to promote it, it’s a way of getting people off council waiting lists. I have lived in a shared-ownership property for 15 years and I would never recommend it to anyone, in fact I would advise people to think very, very carefully before taking part. My housing association owns the larger percentage of the house, but do not pay a penny towards the upkeep, as a ‘home owner’ I am expected to do this myself. There are lots of pitfalls with these schemes so my advice is “buyer beware”!

I offer my condolences to all those who have suffered but I also thank them for sharing their experiences. Hopefully we can now avoid making the same mistakes they have. This was not a case of me cherry picking the worst stories. This was the majority experience; please check the evening standard article for yourself.

If you are considering a shared-equity scheme the message is clear, do your research and don’t rush into anything. Make sure you read the small print.

More articles on property coming soon.