Give me some hope !

Abbaliz

Hello

What is everyone's best guess on when my house will be worth again what i bought it for? It cost me £140,000 in November 2007 (only put down a 10% deposit so i guess i am already in negative equity)

please no nasty comments about ha ha ha how daft were you to not see the crash coming........:rolleyes:

im happy in my house , can afford the mortgage payments but just worry about how many years it will take me to get out of negative equity should i ever want/need to sell it given that anything from an overall drop of 20-50% from the top to the bottom of the market is being predicted.

will it indeed ever be worth again what i paid for it in my lifetime??

many thanks

tr3mor

In nominal terms? 2020?

In real terms? Never?

mitchaa

Location would be handy.

The 14.7% YOY figure is very misleading to some areas

Your 10% deposit is probably already up the swanny though.

Response above is the usual MSE scaremongering, just ignore. 2020 my ar*e.

Cannon_Fodder

You've given yourself the answer...

"anything from an overall drop of 20-50% from the top to the bottom of the market is being predicted."

No-one knows.

Extra factors, like the credit crunch, add to the uncertainty over timing, compared to previous crashes.

Having said which, previous crashes could be a rough guide - depending on whose stats you use, its around 4-6 years of negative/flat market.

How long back up to the peak after that, will obviously vary greatly depending on the % drop...

"in your lifetime?" How old are you?

sympatex

Abbaliz, noone's house is "worth" anything until they wish to sell it and i'd probably stick with that to stop yourself fretting about stuff outside of your control.

The only concern i would have (as you can afford the repayments) is what happens when you re mortgage if you are on a fixed term mortgage. In some instances not all, a lender will do a house valuation when you remortgage, this is where you may find yourself locked out of the "best deals" and be forced onto the SVR. This can add quite alot to repayments.

Best thing to do is save, either overpay the mortgage or fill up ISA alowance (which you should do anyway) and then when it comes to remortgaing you have a pile of cash which might enable you to avoid negative equity. (if you want to move NE needs to be cleared.) If you don't need to move, you don't need to worry.

There's no telling when your house will be 'worth' what you paid for it, depends on how quickly sentiment changes (and economic ones). If you put it up for sale now you might well get a buyer for what you paid for it, every house & situation is different.

tr3mor

mitchaa wrote: »

The 14.7% YOY figure is very misleading to some areas

You're right. It's an average. Some areas are suffering a lot more.

How's the feeling in Aberdeen now speculators aren't buying North Sea Tulips?

:rotfl:

Abbaliz

Hi again

the house is in Bradford , West yorkshire

25 year repayment mortgage started in November 2007, me and my husband (joint mortgage) both 37

Abbaliz

.....also do have 10% ready to pay maximum capital repayment (most we can do without penalty) in January but i dont think even that will stave off the negative equity !!

can afford repayments, on the lenders current SVR, our fixed term rate finishes in nov 2009. we are prepared for a hike in monthly payment but can pay it........

dopester

mitchaa wrote: »

Location would be handy.

The 14.7% YOY figure is very misleading to some areas

Your 10% deposit is probably already up the swanny though.

Response above is the usual MSE scaremongering, just ignore. 2020 my ar*e.

Yes, but the crash has only just begun in Aberdeen, so your area is just a few months behind England and much of the rest of the world.

--- > Casts out the bait for mitchaa cause she is such a laugh when she is angry and goes in to a storm seeking apologies that there will be no crash that can eat away her HPI.

darktrader

Abbaliz wrote: »

please no nasty comments about ha ha ha how daft were you to not see the crash coming........:rolleyes:

Please don't worry about Negative Equity. You have already said that you can meet the mortgage payments. Assuming you bought the house as a home and not an investment then its declining value is only going to be a problem if you have to sell for some unforseen reason.

During the last crash I sold a house for about the same price I paid to buy it...9 years earlier. In my case, didn't matter because I was paying off the mortgage and was happy where I lived.

Then, the next house I bought, ten years ago, has shot up in "value", and is now losing some. But as I am happy to live here I have never had it valued because...that's right. It is my home, not an investment.

brit1234

Its looking increasingly likely prices will fall further than 50%. Thats good news for a lot of us.