Negative Equity Property & Struggling to Manage

BTman

I'm sure we will see more of this over the next few years.
Remember, always do your own research, never trust anyone with a vested interest on rising property prices. especially the media and estate agents!!

mobile-advice

In this tricky situation, I would sell.

I think although in general demand exceeds supply, there have been so many of these semi-luxury 2 bed, 2 bath flats been built, which target a relatively narrow segment of the market.

Taking the hit now would be painful but getting it repossessed would be far worse.

Zammo

Krish, do you have a post code so we can look up what the other properties are selling for on nethouseprices?

ianian99

mpsavuk wrote:

I can't understand it. I thought property only ever goes up in value?

Surely you can't loose if you've invested in bricks & mortar?

HAHAHAHAHAHAHAHAHA thats really funny mate but I bet theres loads of people that believe that due to the way EVERYONE in the uk is fighting each other to buy property.
Rollon the big crash thats what i say.

ianian99

mpsavuk wrote:

Ok, explain it to me then if you are so clever.

Renting is dead money so it's always best to buy.

Prices are going to keep rising so best to buy before you get priced out.

The media say prices will be going up 10% this year and 12% the year after.

You can't loose if you get on the property ladder, even with an interest only mortgage.

even funnier mate :rotfl:

maninthestreet

It is worrying that in 2 1/2 years of what we are led to believe is a booming property market, somone can end up in negative equity like this.

BTman

I'm sure mpsavuk has their tongue firmly in their cheek..

andrew8018

It's a heartbreaking decision but my advice would be to cut your losses. As other posters have mentioned, you could be in a far worse position in six months time, never mind three years.

Holding on to break even is a considerable gamble and if a correction does begin any time soon, it's exactly this type of property which is going to fall first. I think you take some comfort in the fact that's it's not your residential home in negative equity.

Best of luck

TTMCMschine

The stock market has an old saying: "cut your losers, let your winners run"

In other words, if something is making you money stick with it, if something is costing you money ditch it. Your flat is not just losing value, it's costing you money (£300 per month) to lose that money.

Thats a really bad position to be in - ditch it now & take the hit while it's still only £20K.

Doozergirl

I think I'd sell too. New build flats just aren't a good investment. They are rarely worth what people pay for them and the oversupply means that they are highly unlikely to gain back that £20,000 lost before you spend nearly that much in interest payments, even in an otherwise bouyant marketplace.

You're paying out nearly £3600 every year before you acount for the agents fees and the fact that your flat will be rapidly losing it's sparkle while someone is living there and is going to need a makeover sometime to make it stand out against all the others.

If anything does happen for worse in the houseing market, there are plenty of people out there subsidising the rent and they are all going to start selling together. I'm watching flat after flat get repossessed in a development near me which is worth around 80% of it's original sale price (no price crash, just what they were worth in the first place).

You're potentially throwing good money after bad now

I'd wet myself if I lived in a street with 300 identical houses to compete with.