Is the help to buy scheme worth it?
Are you asking “Is the help to buy scheme worth it?” Did you watch the recent video Samuel released about the Help To Buy government scheme? In that video, Samuel spoke about the downside of the Help To Buy scheme. Many of the comments were appreciative of the insight. However, some were negative because they felt he was being too biased. The purpose of the video was to give you the cons and the catches, because the good points are already well known and well documented online.
One of the key downsides is the fact that it is a loan. It's not a free grant. You will have to pay that loan back eventually. Secondly, you are forced to purchase a new-build property. The main negative aspect of buying a new-build is the fact that the value will inevitable drop, immediately after purchase. This lands you in a position of negative equity as you have bad debt and an asset which is worth less than your investment.
Some people have shared anecdotes about how the Help To Buy scheme has helped them. If you are looking to be a property investor, this scheme is not going to be a big weapon for you. If you are looking for a place to live and call home, you could indeed use the scheme. However, the property investor's mantra is always to rent where you live. That's our suggested strategy because we believe you should only own assets which produce cash flow.
So, instead of borrowing money from the government and relying on the state, Samuel is motivating you to be independent. If you can't raise money from friends and contacts, be creative, be entrepreneurial and figure it out. Try deal sourcing, no-money down rent to rent deals – these are just two examples. If you want to get more information about strategies, tactics and methods, we have an easy solution for you. Come along to our free Crash Course where you can begin your journey of learning and earning.