New Build Salesperson

SquatNow

rugbygirl27 wrote: »

Thank you lostinrates. I know that we are not the only people in this situation though and at the end of the day even if we lose the money it's only money and we still have a roof over our heads even if it is rented. It would mean no wedding and no children but hey - you can't have everything!

Think of it as a big fat gift from god, wrapped up in silver paper with a big pink bow.

If you had completed you'de now be in MASSIVE negative equity.

That is, assuming they don't chase you for the difference between your offer and the final selling price.

Treadmill

SquatNow wrote: »

Think of it as a big fat gift from god, wrapped up in silver paper with a big pink bow.

If you had completed you'de now be in MASSIVE negative equity.

That is, assuming they don't chase you for the difference between your offer and the final selling price.

How do you work that out then ? The 25K deposit the poster has lost is real cash.... negative equity is just a paper loss. i know which one I'd rather suffer.

SquatNow

Treadmill wrote: »

How do you work that out then ? The 25K deposit the poster has lost is real cash.... negative equity is just a paper loss. i know which one I'd rather suffer.

oh dear.

Oh dear oh dear.

This "paper loss" thing has come up again.

It's only a paper loss until you sell....
.... or your mortgage fixed rate expires and your stuck on the highly inflated SVR and then you can't afford the payments anymore. Or you go off sick and need a payment holiday. Or you get a promotion but have to turn it down bcause you can't move.

People need to start to realise that negative equity is REAL money, not play money. It means your stuck there... forever.

You can never change job, so you carrear prospect go out the window.

Negative equity is a financial disaster for anyone in it, are people speak far too lightly of it.

IMHO.... the OP dodged a bullet on this one.

Microstar_2

SquatNow wrote: »

IMHO.... the OP dodged a bullet on this one.

No she's not, she's £25k down so the loss is already realised.
She should be trying to get the £25k back and carry on renting for a while yet.

SquatNow

Microstar wrote: »

No she's not, she's £25k down so the loss is already realised. She should be trying to get the £25k back and carry on renting for a while yet.

I want to make it clear that I'm not trying to belittle the rugbygirl27's losses.

In fact I think the builders contracts should be investigated by the court, declared illeagle and then thrown out... they are distgusting.

All I'm saying is that a £25k loss now is better than a £50k loss in a couple of years time. The rugbygirl27s life hasn't been ruined forever and they still have time to start again.

I think peoples perceptions on negative equity, especially people over 40, are still coloured by what happened last time. The government inflated away the debts. Sadly as we are now net importers of pretty much everything rather than exporters, that wont happen this time. We're getting inflation but not wage inflation.

baileysbattlebus

I have to say this - I'm over 40 and had a house during the last recession - I certainly didn't suffer from wage inflation - we had a 3% pay cut and not a penny rise for 3 years - I worked for a big mult national.

They halved the work force and like many at the time I felt I was quite lucky to have a decent job, which was more than a lot of others had.

We didn't suffer from negative equity fortunately, but negative equity may prove to be least of people's problems.

GDB2222

Natty082 wrote: »

We only went for it because it was reduced and we went in and got an extra £40K off, stamp duty, carpets and legals! And its a 'home' not an 'investment'

That's another one for the sig.

GDB2222

The three D's are the 'killers': Divorce, Death, and 'Dundancy. (OK, that last one's an R, really.) People can live with negative equity provided they can be sure of avoiding the 3 D's.

The last time there was a property crash, it took almost 10 years for prices to recover to the previous peak. That's a long time to avoid the 3 D's. Half of marriages end in divorce these days, for example. Death can usually be insured against, but that's the least likely of the 3.

If you are in negative equity then once you get hit by one of the 3 D's you are almost bound to get repossessed. So, the simple answer to this is to avoid getting into negative equity by being careful not to buy your house at or near the peak in prices.

lostinrates

rugbygirl27 wrote: »

January this year we signed up. At the time we were getting a very good price for our house and we had no problems getting a mortgage as we had a good 10% deposit. Unfortunately since then the CC has hit the mortgage market and 90% ltv mortgages are short on the ground. New builds in particular have lost their value hence making getting the required amount very hard. If Bellway weren't messing the build schedule around we would have been in before our offer ran out so we wouldn't have had a problem.

I AM NOT A LAWYER, but the more I think about this the more I wonder if it is not an unfair contract? (from what we have heard). Has this been tested in the Courts? Does anyone know?

Natty082

GDB2222 wrote: »

That's another one for the sig.

well what would you do if your boyfriends nut job ex kept harrassing you and was making your life hell? Have a home and lose some money - or have your health and mentality ruined!

We risked the house!