FTBers sleepwalking into negative equity which threatens to leave manny trapped

joe_blotts

Around 40,000 first-time buyers a
year are sleepwalking into a negative equity trap which threatens to leave many unable to move for a decade.

A Money Mail investigation has discovered that one in five of all first-home buyers are putting down 10 per cent or less as a deposit.

But with prices plunging in most regions of the country, and buyers being lured to snap up newly built homes, many of these are seeing their tiny deposits disappear. In some cases, this can happen even before they have properly moved in

http://www.dailymail.co.uk/news/article-2171619/First-time-buyers-sleepwalking-negative-equity-trap-threatens-leave-unable-decade.html#ixzz20IkEs1xc


But there's never been a 'better time to buy'. Don't think just buy!!

FTBFun

I think any article which uses the phrase "plunging", and has its first quote as someone from PricedOut, can be taken with a pinch of salt.

Mr._Pricklepants

Anyone else thinking this joe blotts guy is another reincarnation of our beloved Foxy?

mystic_trev

Mr._Pricklepants wrote: »

Anyone else thinking this joe blotts guy is another reincarnation of our beloved Foxy?

Anone else think this Mr. Pricklepants guy is another reincarnation of our beloved MrRee? :rotfl:

moneyinmypocket

These doom Sayers are some of most jealous nasty people around - if you rent your losing money every month! If you buy, budget sensibly, live within your means and get on with your life

wotsthat

If someone has an irrational fear of negative equity then they should forget buying and just rent instead.

wymondham

I think something missed out of the article were the incentives given to first timers to buy new properties by house builders/Gov schemes. It's a bit like a drug dealer giving you a 'sample', knowing you can't help yourself and you'll be back - despite it not being good for you or in your best interest!

I would however like to witness a 'money mail' investigation - I wonder if it involves anything other than the use of Google?

Mr._Pricklepants

mystic_trev wrote: »

Anone else think this Mr. Pricklepants guy is another reincarnation of our beloved MrRee? :rotfl:

I don't think my posts are even similar to the ones of our beloved Mr. Ree, but if you want to believe that I am him, be my guest.

ess0two

wotsthat wrote: »

If someone has an irrational fear of negative equity then they should forget buying and just rent instead.

Odd really,the majority will happily pay 20k for a car,for it to be worth less than 10k 3 years later.

And dont even bat an eyelid.

joe_blotts

Mr._Pricklepants wrote: »

Anyone else thinking this joe blotts guy is another reincarnation of our beloved Foxy?

Whose Foxy and Mr Ree? Do Newbies always get accused of being 'someone else'?

abaxas

ess0two wrote: »

Odd really,the majority will happily pay 20k for a car,for it to be worth less than 10k 3 years later.

And dont even bat an eyelid.

Cars wear out and need maintenance. So do houses, if you dont spend the money, all you have is a pile of bricks.