Browse Forums Home Finance Re: Shared equity or bank loan? 12Apr 04, 2009 2:25 pm My opinion is that these shared equity schemes don't work for most people as there are other ways to reduce your repayments in the short term such as interest only repayments or you could try to get a housemate to reduce the burden. Of course if you are in an area where prices are unlikely to increase in the near future then you can consider it as a short term strategy and just refinance to a normal loan in a couple of years time. I'm not familiar with Keystarts shared equity scheme as they don't operate here in NSW so you should check with your broker to make sure they don't have any expensive exit fees. If you are worried about job security then either don't buy or consider getting some form of income protection insurance. The media loves to blame banks and rate rises for people defaulting on their loans however the reality is that even last year the #1 cause of defaults was because of loss of income for one reason or another. Nobody knows what the next year will bring so be a little more conservative, buy a cheaper place you can afford and get insurance to make sure you are protected. The biggest challenge will be if you take out a loan and then run out of money - you'll have an incomplete security and lenders do not like this so you can get stuck.… 2 19107 How much are you ahead in payments compared to where the build is at? Have you fully drawn down the loan? 5 11917 Hi, I live in a single storey semi-detached house with a shared wall. All is well until my neighbour’s kid started piano lessons (using an upright piano) and the noise… 0 12896 |