Quote:
Originally Posted by Avulon
There is one difference it makes, whether you can afford to sell or not. Near to the beginning of a mortgage term negative equity often means that selling the house will leave a shortfall in paying off the mortgage, a shortfall that often can't be met. Leaving the 'owner' unable to move until the equity balance is restored. Either by prices going back up or by paying off a larger percentage of the mortgage. (Of course there's always the option of leaving the market and renting, or becoming homeless).
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It's fairly simple, if you can't afford to move, then don't, if you can't afford to buy, then don't, and when considering the single most important purchase in life, choose carefully and don't rush.
Property prices are artificially inflated above the norm by greedy speculators, often overseas absentees, private landlords, and greedy estate agents.
This is coupled with the scandalous "right to buy" meaning social housing stocks are dwindling to a point where people not in a position to buy their own home for whatever reason, are forced down the road of private rental property.
My house if marketed today would in all likelihood sell at around 200k, four times what I paid for it 25 years ago, and 3000% more than the house cost new 48 years ago.
£6500 in real life inflation terms from 1972 as opposed to 2020 is £86000, so why the disparity?
When asked by people what is your house worth? I always answer as to the price I paid, simply put I couldn't care less how much the house is worth, it is my family home and not an investment vehicle.
Brian
