Family homes for £200,000

FAMILY homes could be built on States-owned land and sold for as little as £200,000, says the Environment Minister.

Deputy Duhamel says that first-time buyer homes could be built for £200,000
Deputy Duhamel says that first-time buyer homes could be built for £200,000

FAMILY homes could be built on States-owned land and sold for as little as £200,000, says the Environment Minister.

Offering a ray of hope to hundreds of Islanders who fear that they might never own their own house, Deputy Rob Duhamel said that sites could be found and revealed that he had spoken to the Jersey Construction Council about bringing in the homes on budget.

He also said that a bank was prepared to put up funding for 150 mortgages for the houses.

Housing department statistics reveal that 70 per cent of Islanders who do not currently own their homes cannot afford to buy.

Comments for: "Family homes for £200,000"

SB

So long as there is some provision that the owners will not be able to turn around and sell them on the secondary market for £400k in a couple of years time, this can only be a good thing.

Something like any sales proceeds in excess of the purchase price + inflation go back into the states coffers should do the trick.

CAN'T AFFORD= NOT A SUITABLE HOMEOWNER

if people can't afford to buy a house in the normal way, then WHY SHOULD WE ALL SUBSIDISE THEM to be homeowners. you need to prove that you can afford something before you are lent money. if they can't afford it then they're not prospective buyers at all.....SIMPLES

PJ

Eh simples................

Won't the states make money on the interest, more than they would get from a bank in interest and stops them wasting it on other daft projects.

And what makes you think because a home is costing £200k they are not suitable homeowners?

Sounds like your very jealous because you can't buy or have just been ripped off like the rest of the island paying way over the top for their properties, at least it might bring house prices down to earth!!!!!

Alison

What a stupid comment this is. People pay rent of more than double of what a mortgage could cost them, so how can you say WE SHOULD ALL SUBSIDISE THEM. This is a brilliant idea by the States and I hope they see it through and offer all people on low income a mortgage so they can begin a life and give a better financial future to their children.

Mrs B

Alison we will be subsidising them - by giving our land away for free.

Overpopulated

When the last lot of States loan properties were built near me at least 2 were sold the same day they were purchased. The first time buyers made a large profit.

That is why people who own land are reluctant to sell cheap for this purpose.

The States admit they do not actually have any land currently available for this so it sounds like another pipe dream.

Ben

States Loan properties?

States loans became obsolete years ago when loan interest rates went through the floor.

My mortgage which I took out in 2000 is currently 1.50%.

Roselle Pier

Well said SB.

Perhaps it could be done on a sliding scale whereby if you kept your home for 15 years before selling it, then you could keep all the profit. However, if you sold it after, say, 4 or 5 years, then you would have to pay the States back a proportion of the profit.

If this scheme goes ahead, it is VITAL that every effort is made to keep these homes available to low-income families.

I know of 2 young couples who were offered houses at Belle Vue years ago. Both of them turned them down when they realised that they'd have to give the States a large portion of the profit they'd make on re-sale.

People like that don't want a home, they just want a tool to make money.

Simon

Have to say this, which I am sure will not go down well, but I have to totally disagree with this proposal. I spent my life sayings on a property 18 months ago, it cost me 242k, and it is a standard 2 bedroom flat, no thrills.

The fact that the States now want to create affordable "family homes" for 200k will surely have an adverse affect on the value of my property, and all the other homeowners out there. I agree that house prices are crazy in the island, however, anything that will potentially push me in to negative equity, I have to disagree with.

Banks are letting people borrow 5 times their salary, this means that if each parent is earning 20k, they can afford to buy. If you are not able to earn over this amount of money, you could not be thinking about owning a home, but focus your efforts on education and getting more professionally qualified.

MK2K

I agree with your first statement Simon, we paid 225k for a one bed flat and know we'd have to put of having kids for a few years until we could afford a bigger house!

I do not however agree with your closing line and personally find it quite offensive. I have a high 2.1 degree and yet do not earn more than 20k. I think you'll find a lot of jobs you have to be qualified for but sadly do not pay well for doing it! As an example animal jobs, vet nursing and zoo work are specialist and yet low income.

Kyle

Simon, that's the property market and if you don't buy at the right time you lose. It was clear 2 years ago that the recession will hit in Jersey by 2013 and you should have known that prices won't rise, so don't buy at it's peak. I left Jersey 16 months ago because I knew I'd never be able to buy a house with garden at a decent price. Moved out West only 20 mins from the coast, 15 mins from town where I work and my 4 bed house with 2000 m2 garden cost me less than 100.000 in Euro. I don't agree with your comment about 20k either, a couple earning 20k each might save more than a couple on 30k each. I'm not on a massive wage now, around 25K (Euro) but my mortgage is only around €240, so even affordable being unemployed.

eh?

West? Wot to Atlantis ?

Kyle

Yes near Atlantic:-)

Agree

Simon,

I agree with your first two paragraphs, we have just bought a house and I would like to think we can sell it in 10 years time for a profit. Any houses going for £200,000 will ensure that we can never do this.

That Rob Duhamel needs to wake up and realise that life is hard. If you can afford to buy then buy, if you can't then don't. That's how it is everywhere else in the world. Why do people on low incomes (or people who just can't be bothered to work) think that they have a right to just procreate for the sake of it and then get given a home? Society has gone mad.

NB

And what makes you think you should get a profit in 10 years time?

You have bought a home, not an investment. It is attitudes like yours that are the reason prices are so high, expecting something for nothing.

What you have basically said there is: "I have just bought a house at all time high prices so no, people shouldn't be allowed to buy a house for a sensible price because i paid over the odds and expect to make money out of it down the line, if someone messes with prices then i'll never make a profit"

Yes, society has gone mad, and your post is a prime example of why.

Marx

Totally agree NB, people buy at peak prices and still expect to make profit in Jersey (242K for a 2 bed, Oh my God). It's the same when people buy the new jumper at a price of £100 and get annoyed when it's £50 in the Sales after christmas:-).

Agree

NB and Marx,

Do you not understand that that is what every home owner wants/does. That's why it's called climbing the property ladder; you buy a place and then a few years later when prices have gone up, you sell it for a profit and then buy a bigger place.

A property can be both a home and an investment. Why have a go at me for providing a home (and investment) for my family?

If I was renting I would just be feeding the pockets of a greedy landlord. These are the poeple that you should direct your agression at; they buy loads of properties and get gullible people to pay their mortgages for them. You'll find that is the reason that house prices have soared over the last 20 years not because honest hardworking intelligent individuals have bought themselves and home/investment.

I understand why some are discussing negative equity and they may be proved right - I doubt it but it could happen. I just hope it doesn't. I took a risk to provide for my family but it was now or never. There comes a point where one becomes too old to obtain a mortgage so my parnter and I took a gamble and went for it. We love our home/investment and we are proud that we are providing for our children and building a future.

Perhaps you prefer those who live off social and spend the tax you've paid? It is a shame that there are poeple like you who begrudge those who want to make something of themselves and succeed in life.

Merry Christmas to all.

evelyn

its easily done if the states build them selves

Sensible

So they cannot afford to buy, then they should not buy. Either they try and change their circumstances via increased earnings\cutting back on spending to save or the market progresses downward until they can afford to buy. The States should not be involved in allowing people to buy a home, they should be building social housing for those whom cannot afford to buy or rent privately.

And one would imagine that any bank prepared to sign up to this would have come sort of covenat with the States so that they (or us) pick up the bill should anyone default on the mortgage.

evelyn

these will only be 3/ 4 bedroom timberframe houses not like your bricks and moter investment.so dont begrudge low earners

Sensible

Timber frame or not, they cannot afford to buy without subsidy so they should not buy. It would be very well for them to live in social housing but buying property which you cannot afford was a key factor in kicking off the financial mire the west finds itself in.

And for the record, i do not have a bricks and morter investment; i have a home.

evelyn

all working people want a home no matter what you earn it is every ones goal in life

Mo

So what is the catch and how does one go about getting themself on the list and what are the specifications for one acquiring one of these home single, married, with or without kids etc ....there must be some sort of a clause....too good to be true!!!!!!!

Koller

The questions would be:

Are these houses of good quality?

If the land is states owned, is it really yours? If some of these picked people can buy it for 200,000. would they be able to sell at a higher price? You can probably only sell it back to the states (which would make sense) but what are the conditions?

Island Strife

Love to buy one, where do I sign up ?

Or rather, where can I read the no doubt massive criteria to I need to fit to be able to buy one of these places ?

Hopefully I won't be penalised for not being a current states tennant which is the only thing that prevents me buying one of their properties that are currently for sale.

Cue the rants please . . . .

CMC

I sympathise with you completely. We were lucky (?!) to be able to buy an ex-rental property and we think it's despicable that this scheme is not open to locally-qualified non-states tenants, even though they cannot sell the properties! Good luck for the future-however I do have one piece of advice- If you can buy privately instead of using the States to assist in anyway I would say definitely do that. I don't wish to sound ungrateful but we have had no end of various unforeseen problems due to doing things this way and if I could change things I would. Not interested in a fairly priced 3 bed are you?? Haha

the thin wallet

if these homes happen.

what does the say for the valuations of the 40 year old housing stock?

Billy

Well, I didn't pay more than €90.000 for a family home (with space) & don't have to worry about restrictions. Can rent, can sell & the land is actually mine. This could be a good idea but even 200.000 is overpriced at the moment.

Paul The Builder

What is it with this topic of cheap houses.

I wish that everyone and that includes the JEP would report this correctly. I can and have built houses for under £200,000 but it is not this that inflates the price. First of all it's the land cost, anything from £100,000 to £150,000 per plot, then you have the financing costs which can add up to £20,000 per plot, then the Architects,Engineers, Estate agent fee's and lawyer's charges which can be another £10,000. Add these all together and you get a nett price to the builder of £340 - £380,000 per house, NOT £200,000 !!!

The JEP quote "which is £12,000 less than the average price of a one bedroom flat" is highly misleading as the flat includes all the on-costs mentioned above wheras the £200,000 figure does not. Please report this correctly.

evelyn

are you sure your name is not bob

Len

340 -380 per house. Well I can build for a quarter of that so what you say is grossly wrong. You obviously are including your seriously over exaggerated and excessive unrealistic wages and other unneccessary costs to crank up your price eh. A timber frame house can be erected and finished for an extremly low cost. Perhaps you are afraid of loosing business.

Steve

Paul is spot on!

£200k to build is realistic. If the States build on their own land the cost is zero (although not really, as the rest of us taxpayers actually lose - giving away land for free that could otherwise be sold to a developer).

Better all round if the States used this type of land for social housing only, meddling in the market is not good!!!!

Blade

Well said simon I couldn't agree more.

This is more to do with bailing out developers that have built hundreds of flats and can not sell them now.

Life is tough... and some people will never be able to afford a home. Thats life. This just smacks of the same policies that started the sub prime crash in florida, and the present recession.

Sell houses to people who simply do not earn enough to own one. then 18 months 2 years down the line the bubble burst's as we have seen in 2008. Except it will be the taxpayer paying again!

This must never get off the ground.

If you want to own a house save a deposit... stop going on hoilday and buying new i phones/dvd players/new 50 inch tv's and the new car every year and you will be able to afford one.

I can hear the cries from the do gooder brigade already.

Sensible

No cries here, your bang on.

When my wife and I bought our first house here, we were low earners but through saving and careful financial management we were able to live well. This want want want culture needs to stop, owning your house is the ideal but if you cannot afford to then it simply shouldnt happen.

evelyn

well it is going to happen so live with it

I Pasdenom

THis Minister's days are numbered, what's to say the next Minister goes down a different path trying to distance himself from the vision of his predecessor?

And I don't really understand what the obsession with giving away Public assets; hopefully these plans will go the same way as plans to give away our coastline, and be voted out.

evelyn

all the days of big money earners have gone jersey has to adapt to that

Paul

I've heard it all before! There will be no land left one day and there will be property everywhere. Control immagration first and stop letting people outside the island buy property to let out!

SH

Couldn't have put it any better myself.

Alan

The way some houses are priced up in this Island even £200K sounds optimistic.

R B Bougourd

Why the continued obsession with this unimaginative "Traditional" style, made even worse by putting so many into each development?

Sanity

Nice to have such a subsidy from those mugs paying tax and GST. I know many who last time round who made a killing from such blinkered thinking. Beats working for the rest of your life.

Stan

I hear there is some land on the North West coast available

NB

Of course, this will never happen.

You only have to look at the many comments above from people who either a) bought their property at peak prices and so begrudge anyone buying cheaper because it means they were stupid enough to place themselves in a position of possible negative equity OR b) bought decently priced homes before the boom of the 90's and now expect to be owed some kind of over inflated perceived profit, some of them even admit as much.

When so many have vested interests the few hard working who fall above the 'benefits' line yet below the property purchase line are left to squander their money on private rentals.

My partner and i earn just above the average combined wage yet have no hope of buying a property suitable for bringing up our first child. No doubt someone will claim this can be done in a 2 bedroom flat in a block of many others, to those i ask, how many of you were bought up in a flat? I'd be willing to wager most of you were raised in small, well priced houses just like i and everyone else i know was.

Of course, because we are responsible, sensible people and didn't pop out as many kids as possible and live off the state we get the comments like #2 and #10 telling us to 'work hard' or go out and get a better education from those who were either lucky enough to buy before house prices rocketed away from the levels of earnings or those stupid enough to buy at over inflated prices in the last decade.

If you cannot see the status quo has changed dramatically since the mid 90's then i would suggest it is you who perhaps needs better educating.

homeowner

I am not wanting to sound uncaring but if buying a house is so important why not move off island to acheive your dream, there are plenty of houses for sale outside of Jersey. There is such better value housing elsewhere why not up sticks and move for a better lifestyle? If your wages are so low now there is a good chance you will pick up work elsewhere in the UK with comparable if not better renumeration (jobs are there for people who are prepared to move).

As far as Duhammel, you could not build an extension on the side of a house for 200K over here, seriously! give me the name of the builder he will be using. If he pushes ahead with this he will send the housing market into freefall with many people ending up with negative equity. I for one have worked and still do work very hard for long periods of time away from home to be able to afford to live in Jersey, this includes buying and paying for our house. To have some half baked moron (have you ever spent time in his company) come along and propose to set up something that may ruin me makes me very nervous.

Johnston

I do agree homeowner, there are plenty of houses elsewhere. I've seen loads of houses just around the corner where I moved to in Ireland last year that have been bought during the boom and are waiting for new owners. There are jobs available and you can purchase a nice 3 or 4 bed semi for 60,000€ at the moment(that's under £50,000). The lakes are only 15 mins away and max 30mins to center (good bus connection) & coast with amazing surfing. I have loads of educated spanish work colleagues who came over and are happy, while a lot of young Irish still move because they have to pay for there 5 houses, or are just forced to sell:-) I still like Jersey but I made the move because I wanted a nice home at an affordable price. If you're not prepared to move these days, then stop complaining.

Simon

NB it is not a god given right to own a house. If you dont like it, i am sure you can always try another jurisdiction.

If you ever do become a homeowner, lets see if your opinion remains the same, I doubt it very much.

NB

If I ever become a home owner (again), I will wait until prices return to a reasonable level and not buy at stupid prices then complain that my property will be devalued pushing me into negative equity, Simon.

Bing and Bry

" i ask, how many of you were bought up in a flat?"

We were, someone else bought the flat we were renting, so, effectively, we were bought up as well!

Gino Risoli

The truth is that we have valued a home as an asset, a big mistake leading to policies that inflate the price of property such not having a tax structure that would tax profit on short term gain on a sliding scale so that after say seven years there would be no tax to pay.

S2

It looks like English, but can't understand it.

jerseythepartiesover

Anyone who has any knowledge of supply side economics knows this cannot work. The only scenario here is (if, it will never happen) cheap subsidised property comes onto the market the whole property market prices fall.

Jersey property developers who sold newly built properties and sold them well beyond what it cost them to build and property owners who rent out at unbelievable rents and always have done so are finding out the goose that laid the golden egg has flown elsewhere and all you are being left with is your governments Christmas Turkey which has mostly already been devioured.

Merry Christmas.

Kyle

Agree and very sensible, as I mentioned above, my house was less than 100K this year although cost would have been 400K 5 years ago. With more jobs going on the Island, people who bought in the last 3 years might have to sell. The recession also has positive sides, keep saving and you'll do well. It's like buying a jacket, if you don't need it now and can wait for christmas sales , you'll get a bargain.

the thin wallet

is your house falling down?

300k in 5 years?

coninSpector

This house you own worth £100,000 is obviously not in Jersey. The States are bending over backwards to appease voters and even then they can not build for less than £200,000.

Busdriver

Supply and demand will dictate market prices. I wonder how many people are putting off house purchases due to uncertainty in the job market. Negative equity was a reality in the UK not that long ago and many people suffered before the market adjusted to more realistic figures, maybe that's what is needed here. The states should leave well alone and not dabble in this sector, if no one is buying land then the land owners will drop their prices, maybe they won't, who knows. I take it that married couples with no kids who pay more tax and therefore do not take from the system will not get a look in. Brilliant

Overpopulated

Negative equity if a big factor in the UK market currently for people who bought at the top of the market.

However, it is also a fact in 2012 in Jersey, anyone who bought in the boom years with a 100% and/or interest only mortgage will be in negative equity.

Otto Britain

Another stupid scheme that will come to nothing from our Planning Minister! Taxi!

KATIE

Lets just see how far this ends up going.

I see no mention in the report of how many sites have been penciled in for developement, nor any mention of any amount of the idea of how many homes could be built. But I do have this possible tip for the Housing Dept and Island Planning. Take a leaf out of the book of Germany, Austria, France & Poland and build not 3 bedroomed houses but developments of 2 + 3 bedroomed appartments/flats. The day of a States loan home of 3 bedrooms with garage and front and back garden has long gone, and if families do want a home of their own , then it should not matter the style of property. I myself purchased a 2 bedroomed appartment in 1992 for £94,500 under the States Loan, and even though I would have prefered a house, my husband and i were more than willing to get onto the property ladder and still enjoy the property to this day.

Jane

We don't need more boxy flat/apartment developments going up - there are so many of them already. Even estate agents agree the market is swamped with these flats which aren't selling. People should be entitled to at least a chance at some quality of life here for their families (why do we want to follow germany/france/poland??) - do you know how hard it is with a small child and no garden or parking?

coninSpector

Jane

Most apartments have private parking and the beauty of living in Jersey is the fact that beaches and parks are within walking distance. If the parents are too lazy to exercise their children then that is another question.

Jane

ConinSpector

You're obviously not a parent then

KATIE

Many of my neighbours had children, some 2 in their 2 bedroomed Appartments who have now grown up themselves, so as for where your coming from.... I have no idea !

As for your comment on what 'a person should be entitled to' it seems to me that your one of those who believes they have a devine right to own a 3 bedroom house with front and back garden and garage ! For a price of £200k I am sure the queues will be massive, a list i imagine you wont be on !

Jane

@ Katie

I presume the families you are referring to would have much rather preferred a house as opposed to an apartment, and if the opportunity arose to be able to own one i'm sure they would have pursued it!

And as for not thinking I will be on the list, you have no idea of the criteria or my circumstances, so why comment so?

Anyway if you had any chance at buying a house here, without being personal, i think you need to go back to school and learn to spell correctly. Get a decent education. Case closed.

coninSpector

Jane

The point you make about spelling is not relevent. Educated or not, people sometimes make typo errors. Aside from this, the fact remains that if you can afford an apartment but you can not afford a house, then you buy an apartment. You do not expect to be waited for hand and foot by the States of Jersey.

JerseyD

Another good idea you'll probably mess up! The first lot of first time buyers homes (behind the shell gardens) went for sale for next to nothing and they all made over 200% profit on them because Jersey didn't think ahead, J Cat houses were another good idea but because we didn't put an increase in place, as soon as the housing prices rise everything became a J cat! Now you'll sell these houses for £200K and then someone will sell on for £300K and walk away laughing - They should be fixed forever at £200K and people should be forced to sell when their oldest is 18, giving young families a chance to buy well into the future, as much as I'd like that to work - you may as well just rent them a place!

I Pasdenom

What land is available with plot values low enough to enable this? Just sounds like the tax-payer is going to be asked to give assets away to a small number who'll get an unfair advantage over the rest of the population.

If the States want to provide housing for low earners it should be rental only, with rents set to encourage them to move into the private sector as and when they can afford to.

Anyway, surely this Minister going to struggle to last another 6months in the job, so whatever he wants to do he's going to have to think short-term.

Jer78

I think the whole "first time buyer" scheme needs looking at. Just because you are a first time buyer does not mean that you are on a low income. I know of people who have paid £210K for their 3-bed house and they earn £60K+. Sitting pretty now! Whilst I struggle as a single parent with a mortgage.

I believe that too many think that it is there right to own a widescreen tv, i-phone, laptops, nice car etc and class the income they have left as not enough to buy a house. Dedication, willpower and sacrifice are needed if you want a house and have a lower income. That's how I got mine.

Sensible

I too know people who got in on the last scheme, first time buyers with combined income of 100k+....is that fair?

Mrs B

What is this preoccupation with owning your own house? What people really need is their own home where they feel secure and know that they can live there as long as they like without the risk of having to move every couple of years.

No one has the "right" to own unless they can afford it and equally no one has the "right" to own a 3 bed with a garden. We can but aspire.

Despite seeing 1000s of flats being built over recent years there are still not enough proper homes - families should not be expected to bring their children up in rabbit hutches. What happened to building proper 3 or 4 bedroom family flats with decent sized family rooms and circulation spaces? Who decided that we need a load of tiny little starter flats (which were marketed using reduced size furniture to make them seem bigger)?

This whole scheme is nonsensical. As a tax payer would you be happy that the States will in effect be giving away your land for nothing? As a house owner would you be happy that someone can purchase a similar house to yours but at an artificially low price?

People need to lower their expectations. The States need to get their act together and stop any more rabbit hutches being build and also stop passing luxury flats. Just concentrate on proper flats suitable for families. It was done in the past (eg. Les Quennevais, Les Marais), why can we not do this now?

Jersey Boy

I am a young Jersey male, who has been in and out of work for the last 4 years. I have now found a steady job, but there will no way ever I can afford to buy a house in Jersey. I love Jersey and I want to have a family here, but I won't be able to due to the house prices. So all you miserable people who say "oh our houses will be worth less if they build these houses". Well guess what your time is over it is my generations time to take control not yours anymore so sit down and be quiet. If you dont like it BOG OFF we don't want you here anymore you selfish people.

Rentokil

Well said!

All the greedy so and so's I know of who have totally abused the first time buyer system and always want bigger, better and profit,, that's the problem with half this Island. Too busy thinking about what they can get and stuff the consequences for others!!!

I am probably older than you but totally agree. Those who paid over the odds tough!! You have the greedy to blame nobody else!! Those who take advantage always ruin it for others..

Marie

#Jersey Boy

I suggest you do as you say in your last sentence & buy elsewhere as it looks like its going to be your only option

jon

200,000 is still a huge amount of money! only in jersey is this seen as affordable! 100,000 is a far more managable and realistic figure for the islands first time buyers

plagne

Why reward people with our money?

If people can not afford to live here here they can always leave

UNFAIR

I also agree with Simon, why should the selected few be given the option of buying family homes at below the market rate. Schemes like this undermine the value of the property of homebuyers who have paid full price with no subsidies or allowances. If people cannot afford to purchase properties at the going rate, then they should not be encouraged to take on mortgages they may not be able to afford to repay, especially when this is the reason why so many banks are in a mess and so many homes are currently being re-possessed. This proposal is totally unfair to so many people.

James Wiley

You mean unfair to people who have paid over the odds, surely?

What is the market rate, because there are so many houses NOT selling which clearly indicates that the asking prices are well ABOVE the market rate.

As long as interest rates are being held artificially low (they should be about 10% if business loans are anything to go by) we will not be able to determine the true market value of property in Jersey. Fortunately the ratings agencies may well soon downgrade the UK and interest rates will likely have to rise and thereby pop the housing bubble (and Jersey has a forty year bubble to pop)

To subsidise those who do own property, pensions and savings are not getting their true returns, they should be earning 8% on the capital invested but some are evening accepting negative interest rates to preserve as much as possible of the value at this time of global money printing.

5 times average earnings is around £175,000 so it stands to reason that an average family house should be in that region.

Property prices in Jersey are also artificially inflated by rent subsidies (which continue to rise at well above inflation 6% this year) it is clear who the States of Jersey are subsidising - the property owners, you know the Ozoufs of this island.

Just because an estate agent says something is worth something do you believe them? I would say that properties are worth no more than 20% below asking price and are set to fall further as the interest rate rises.

You probably believe what your politicians tell you when they are trying to get your vote?

Many people in Jersey are eventually going to have to face up to the fact that the majority of their earnings is being stolen by the States of Jersey and what little is left is subsidising the banks through negative equity.

That is the painful truth.

Frank

I had an offer on my house of 675,000 in 2009. I decided not to see, but today, my house is valued at 475,000. Property prices in Jersey have never been so low and now is a spectacular time to buy. A 4 bed house that would have cost 650,000 some years ago can now be snapped up for under 400,000 if you look. There are so many bargains to be had. Prices will balance out again and rise just like they always have in Jersey and Jersey has seen this situation all before. Lucky for those who are in a position to buy as they will make 100,000's of thousands in a few years when this stage again passes and property prices rise. Luckily for me I am retired and have paid my mortgage but if I was younger, I would become a property magnate.

Kimberly

@Frank, I agree it's a great time to buy but maybe not in Jersey, as prices are still way too high. There is no job creation in Jersey and even a 400.000 property is only possible for a couple earning 40k each with a 80k DEPOSIT. You just have to look at job sites and you'll see, that these kind of wages have become rare + you only get a mortage with a permanent contract. The golden years are over and there isn't really that much space for development, meaning when will the next job boost come in Jersey? I bought my 4 bed house here in Eire for around 110K this year & my take home salary is even slightly higher than in Jersey, 5 years back it was bought for 390k. We have a Uni here, a new motorway is being built, loads of space for development, meaning a lot of international companies are creating new jobs here (especially in IT & medical area). Buying a house (even in Jersey) for 400K is insane, if you still have to work for the next 30 years with selling restrictions and no job security. Even prices in Ibiza are falling further, although they have the sun:-)

Off the ladder

A lot of comments about 'if you cant afford it, you shouldn't buy it' etc. Whilst I agree to a point that some people should not want to buy, if they cannot finance it, there are (sure I am not the only one) people that can easily afford mortgage repayments, but do not have enough for a deposit or lawyers fees.

In my case, I was a property owner, saved for years to get deposit, started off with small flat, and moved up property ladder over time. Waited until we could afford a house big enough before having children, but lost everything through divorce, house sold and came out of the whole thing with next to nothing.

I work full time, and am forced to rent a 3 bedroom house to accomodate myself and the children when I have them. No help available from states, or social because I work, and because I am not eligible for housing list, I cannot get onto the rental association lists either. My monthly rent is approx £500 more than my mortgage was for a 3 bedroom house. With the cost of living, bills, rent, maintenance etc. I am unable to save money, so short of winning the lottery, I am a bit stuck.

So all in all I can see benefit to a system like this, if it is done properly and fairly, without restricting it to first time buyers or states rental people etc.

Sensible

I feel for you, but unfortunately it will include the restrictions you are worried about: first time buyers, states renters and families.

Keep your head up, at least you can afford to live in a 3 bed house despite not owning it and give your kids somewhere nice to stay.

Off the ladder

Yes you are right,and in my position it is the only way to look at it. If I didn't have kids, I would have been off to somewhere I could afford to buy and enjoy life.

Lowertheprice

Well nobody is stopping you moving somewhere else, even with kids? Other people rent all their lives and are happy + enjoy life. The whole housing situation in Jersey is a mess but there are loads of places where you can find work and rent a nice place for less. You can earn good money and might find that you're better off renting, than buying in Jersey.

Off the ladder

@Lowertheprice, as I said, if it wasn't for my children, I would have moved away, as there is nothing else keeping me here. You are right that housing situation is a mess, and there are plenty of places in the world where you can find work and rent or buy a nice place.

However I think my ex-wife would have plenty to say if I wanted to move with the children. So it was one of those life choices, stay and put up with the housing situation and pay extortionate rent to live in somebody elses property where you need permission to even slap a coat of paint on the walls, or move off Island, find a job and possibility of buying but miss out on my children growing up. Not really that much of a choice!

How about...

If the States can find land to build on the (or currently own land) then they could employ a 'team' themselves to complete the work at a fraction of the price. There are plenty of self employed, or unemployed, tradesmen IN JERSEY who may be willing to complete a housing build project and be paid directly from the States. Would this work???

the thin wallet

exactly, the purchaser could do as much themselves to the house including , general labour .

most can handle a roller for painting and a bit of gloss, or why not stain the architraves and skirtings , you can do this with a rag and stain.

a qualified electrian, could wire his own house on the week ends if working ,or use holiday time .

the fit out i what you can afford basic bathroom / shower ect .

the kitchen basic or take a night cource and learn to make your own units , buy a good quality second hand one ? ( i have)

thankfully my employer is keeping my job open as i work on our home to be .

i have no income only out goings , so its no frills living .

cant afford labour , hard work ? yes .

worth it in the end ? yes .

lunch in france in the late summer ? yes .

holidays again? yes if there is work out there .

coninSpector

Where are all these selfemployed/unemployed tradesmen in Jersey. If they reduced their hourly rates they would be in demand. I dare say they will be able to afford a £200k house.

the thin wallet

well thats the dog chasing its tail that the amount you need per hour to pay rent / mortgage .

run the van , buy the tools , pay tax pay gst social , private health plan ( if poss) as you can get into debt whilst scrimmping by on socials way behind the times paltry sum .

or do you think the tradesman should live in a hovel , get one day of a year and think himself lucky.

Realist

Why all this fuss about buying a house? You are better of renting as when you are old and forced into a home by the social services you will just lose all of it. Just rent and enjoy whatever you can while you can! Spend, spend, spend!

Off the ladder

That is one point of view, and a fair enough comment in itself. But on the flipside, renting can be seen as wasted money, goes to people who are rich enough to own more than one property, and quite often people who own the house, and are off living it up somewhere else.

You say 'spend spend spend', what about leaving something for the future of your children?

Lowertheprice

@Off the ladder, I also bought but at a really low price but what's the point of buying a property in Jersey (one you don't really like)for 450.000, struggling & speculating you might make profit. You'd really be better off renting somewhere abroad for 500€ monthly (no dampness, no extra costs) and could save the money and live again??????????

SH

Wrong. You are better off buying if you can. Paying rent is paying dead money & you have nothing to show for it. Plus, when you have retired you are still paying rent when you have no regular income. I started saving money as a teenager from Saturday/holiday jobs. Bought our 1st home in 1992 (a 3 bed house with garden back & front, 6 months after getting married) and we still live in it today. I'm shocked when I see how much landlords are asking for rent. A 1 bed rental flat is way over what our monthly mortgage is. I know which one I'd rather have.

the wanted

People please see this for exactly what it is.

The underfire Environment Minister is doing what all politicians do when things are not going their way..........they create a good news story, even if it is based on nothing but a seemingly good idea.

There is no land identified. The States would have to approve any such plan. We stopped doing this years ago so why do you think it stands any chance of being resurrected?

Ask to see Duhamels detailed business case. I'll bet there isn't one.

Loveit

Exactly, make the people believe they will be able to afford a home one day, that way the Island is still running and the people pay into the pension pot. After 10 years in a low paid job the people realise that nothing will happen............It's like being in East Germany again, only that people waited for years to get a trabbi & not a home.

donald pond

Not needed. There are lots of empty properties in the Island, the last thing we should do is build new ones, whether luxury developments at Plemont or cheapo ones at some unspecified locations.

Instead, impose annual rates at say 5% of the value of the property on any property that is empty. That will force developers and landlords to drop their prices so that people can buy or rent.

We have a limited amount of land in Jersey and should have a "use it or pay for it" approach to land use.

James Wiley

Firstly, the States of Jersey do not own any land, the public owns the land and the States of Jersey are the trustees. The States cannot sell the land as it does not belong to them. The States have to stop thinking of themselves as a business, they are not and they never should be.

Why not simply sell the plots with planning permission to people instead?

I do love this idea as it will pop the property speculation bubble which exists in Jersey, prices have long way to fall... so glad I quit property and bought gold three years ago.

We just need interest rates to go up - sure many people will go under, but they probably voted for our politicians, stupid is as stupid does.

But the banks will start lending again.

s

Are you living in a house made of gold bullion?

Most people cant "quit" property. Need somewhere to actually live!!

Who cares if prices fall a bit, with historically low mortgage rates for the last few years and certainly a good few more to come, the lower interest payments have certainly more than offset any fall in value, never been better off.

James Wiley

Well it may benefit mortgage payers at first sight but you need to look at the long term picture...

Your pension fund (Social Security and States Employees) is not getting a very good return on its investment, which means that in order to meet the commitments governments will need to substantially increase taxes or you will not be getting a pension at all.

There will be no fund at all by 2030 and I won't have hit retirement age by then.

You need to stop trusting the government they lie, cheat and steal, they are only interested in looking after themselves and it won't affect their election prospects in 2015 so what do they care?

It has been calculated that for every £1 saved by low interest rates, £2 are lost because people just are not getting the returns they should for having had the foresight to save money.

It's called kicking the can down the road and all it means is that by failing to confront the fact that governments have for far too long spent far beyond their means when the inevitable reconciliation occurs it will be far more serious and of course will come at a time when you are no longer so young, or so capable of earning.

Mark Hall

Wait until you try selling your gold, James. You may find that there are even more sharks in that feeding chain than in property.

Your capital might be gaining but you can't live in ingots and they are are easier to steal than houses.

James Wiley

I have physical gold I am not daft enough to trust paper gold any more than I trust paper money.

If it isn't in your hand, it isn't yours.

Just like when you deposit money in a bank you lend the money to the bank, it is no longer yours and if the bank goes under it takes your money with it and no I don't believe that the States of Jersey should offer depositor protection, not that they can actually deliver on the promise in any case. It's an empty promise, they cannot simply turn on the printing press like places with their own currencies.

I will simply go to a local jeweller who will give me 95% of the market value. The very same one who sold it to me at 105% of the market value. If I wanted I could store it for free in his safe but I make my own arrangements.

I bought my house in Nov 2006 for £380,000, I sold eighteen months later for £535,000 (a tidy profit).

I hated having a three bedroom house for just one person, what a waste of economic resources but it was a good investment.

In the intervening three years I have been paying £550 a month net rent and the house I sold is now realistically valued at under £450,000 so I either paid £24,000 in rent or lost £85,000 in asset devaluation plus the interest on the mortgage. So that's a win for me.

At the same time my gold has appreciated from $800 per ounce to $1,700 per ounce. So that's a win for me.

It's win, win.

I am staying in gold and out of property for a while yet.

zippy

What is it about the curious mindset we have in Jersey and the U.K.. Margaret thatcher told people in the eighties that they needed to buy there own home and they all believed her ! If you care to look around at Europe for example the vast majority of people rent.

YES it is possible for a Country and its Economy/people to exist without out the Need to own there own homes. AFFORDABLE rental charges, not rocket science.

Of course and as people have mentioned the rents in Jersey are Bingo numbers material.

We need to FOCUS on Lowering the insane rental charges which will allow people to spend More and boost the economy thus creating JOBS.

Less mindless Emotional discharges, step into the Light, have a Pause for Thought, the above is Simple Common Sense, something sadly missing from many of the comments on this topic.

NB

The difference being that in Europe renters have far more rights to decorate their homes (for example). Short of knocking walls down the law provides for them to enjoy the property as they see fit. Leases are also substantially longer than the 6/12/24 month leases you see offered in the UK and their rights to enjoyment of the property are far greater.

The main issue for renters in Jersey and the UK is one of home security - that is provided for in Europe, it is not here.

Rentokil

Totally.. Which is why some decently priced homes might level out the market.

But as usual all those moaning about their equity, many of which have used MY taxes to give them that priviledge, which many abuse..

Stands to reason really, I bet all those moaning support developing overpriced tat at Plemont to keep the value on their property mind!

Divine intervention I think it's called, and by the way I know of another decent developer who tried to bring this in five years ago as they aren't all greedy, he even offered me a chance but with my circumstances I couldn't really commit. I might give him a ring! :-)