What are your experiences with Negative Equity...

guppy

PasturesNew wrote: »

Panorama TV Programme from 1995 showing you people in negative equity:
http://www.bbc.co.uk/mediaselector/check/bristol/realmedia/092007/bs_panorama?size=4x3&bgc=C0C0C0&nbram=1&bbram=1

Worth it for the hairstyles alone!

BettiePage

neverdespairgirl wrote: »

Sounds tough - a really stressful commute (and you had to end it in Bracknell! Yuck!)

Interest rates weren't 15%, though, for most of 1992, they were 8 - 10 %

I LIVED IN BRACKNELL FOR A COUPLE OF YEARS,MET HUBBY THERE. LEFT LATE (oops caps lock) 1993.

Edit: In fact, my Nan and my Aunt still live there.

wymondham

Strapped wrote: »

I don't think hubby would ever want to go through that kind of financial stress again.

This is the thing. Those that have been in NE before know the pain and try to convey this to those that have not, mostly to be ignored I hasten to add.

There is a sheep mentality at present, with many FTB's in the process of buying (often newbuild flats :eek: ), asking similar questions, and often not taking on board the hard learned advice that include any reference to losing money or Negative Equity....

I have a feeling here - prediction time! - that come even only 6 months down the line we will get a barrage of unemployment posts as the economy falters and the sudden realisation that NE does effect them. I think this winter will be a tough one.

Old_Git

there is a guy in work who bought a 2 bed flat in April 2007 .
The asking price was £125,000 he paid £140,000 after a bidding war .
He wouldnt get £100,000 for it now .His mortgage (interest only ) is fixed until 2010 ,after that I think he will be stuffed .

Lotus-eater

PasturesNew wrote: »

Panorama TV Programme from 1995 showing you people in negative equity:
http://www.bbc.co.uk/mediaselector/check/bristol/realmedia/092007/bs_panorama?size=4x3&bgc=C0C0C0&nbram=1&bbram=1

Very interesting program, so many similarities with today, two main things in common, they all believed prices would never fall, too much debt/percentages of houses borrowed.

The professor at the end though was a bit wrong. Houses will fall or stay stable for the next twenty years Got that a bit wrong prof.
Maybe he thought people would learn.........

poppy10_2

Lotus-eater wrote: »

The professor at the end though was a bit wrong. Houses will fall or stay stable for the next twenty years Got that a bit wrong prof..

That was the funniest bit :rotfl: "Gently falling over the next twenty years" - maybe that will be the outcome this time, though.

lethal0r

PasturesNew wrote: »

Panorama TV Programme from 1995 showing you people in negative equity:
http://www.bbc.co.uk/mediaselector/check/bristol/realmedia/092007/bs_panorama?size=4x3&bgc=C0C0C0&nbram=1&bbram=1

great link! i'd have thought this was from 2008 if it wasn't for the massive glasses, dodgy haircuts & odd names - Penny Bidder & the Tancock family (nude sunbathing anyone?).

space_rider

Quite sobering really. But at least prices did go up for those that were able to stick it out. Perhaps it would be a good idea for people to be shown programmes like this before they sign on the dotted lines. Especially when it is obvious that they would run into trouble in a few years.

mlz1413

My negative equity story was to ride it out, I bought a house on my own in 1991 for 35K like most people in their 20's I struggled to pay the bills but I grafted and made enough money to pay the bills, run the car and eat.

I met a guy in 1994 and he wanted me to sell up and put our money together, I wasn't as keen as this was my home, but looking at the prices I would only get 25K if luckly, so he bought a place on his own and finally I rented mine out and lived with him. By 1995 the relationship had gone sour but I had just re-rented mine for 6 months so I went back to Mum and commuted to work. The money I made renting th house for 6 months gave me enough to do some much needed work on the house and garden and I lived there again until 2002 by which time it was worth about £100k.

I had never dreamt a small terrace house would get to that price and so I looked at selling - but when you look at the market you realise that your house is only worth the same rung of the ladder as it always was. I'm very grateful that I could afford my bills and that I rode out the negative equity.

It taught me to ensure I could always afford my out-goings as you never know when interest rates and property values will change!