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Dispelling the myths of Low Cost Home Ownership

02 Sep 2021

Development, harmoni homes

There are many misconceptions about Low Cost Home Ownership (LCHO). The reality is that it’s a perfect solution if you want to get on the property ladder but have limited income to save for a large deposit.

Homes in Bedwas with harmoni homes logo

We’re dispelling the myths about shared equity homes, showing why they are a great option for first time buyers….

Myth 1: Low cost home ownership is a bit of a last option
It certainly is not a last option. Most first time buyers need a deposit of approximately £30,000 today – that’s ten times as much as 30 years ago! By taking part in this scheme you will need a deposit of between 5%-15% of the 70% equity that you will hold in the property, you do not need a deposit for 100% of the value.

Myth 2: Low cost home ownership homes are ‘sub-standard’
Our homes are built to the same quality as any other property for ‘outright sale’. Instead of being forced out of the area where you grew up, low cost home ownership allows first time buyers to buy a quality home in an expensive area at an affordable price.

Myth 3: The monthly costs are high
Not at all, in fact low cost home ownership is often cheaper than renting. There may be a small annual cost to maintain a communal area or grounds but this will normally be shared amongst all residents at the housing development.

Myth 4: Low cost home ownership homes are hard to find
We regularly market properties available to purchase under our low cost home ownership scheme at many new developments. Please look at harmonihomes.com to find what LCHO properties we have available and follow us on Facebook.

11 new homes at Caerphilly Glade development

Myth 5: Low cost home ownership homes aren’t big enough for a growing family
The size of our low cost home ownership homes vary from one to four bedrooms, ideal if you’re a first time buyer. Our scheme helps you get onto the property ladder, giving you that helping hand if you wish to purchase an even bigger property in the future.

Myth 6: You can’t make money on these houses so it’s not a good investment.
If your home increases in value, so does the value of your 70% share in the property. If you wish to buy your home outright and purchase the shared equity that United Welsh owns, you would have to pay 30% of its current market value. That means, if your property decreases in value, you could purchase your home outright for less than the initial value.

Myth 7: Low cost home ownership properties are hard to sell
Wrong! These homes are marketed in the same way as any other property for sale. In fact, they maybe more attractive to buyers for their affordable prices.

Myth 8: The process of getting a low cost home ownership home is complicated
The process is simple and our team are here to help. Get the ball rolling and click on the blue circle icon bottom right of your screen to chat to our Customer Engagement team.