Neg Equity - what to do?

Ms_Piggy_2

We are in the process of selling OH's flat - now due to various factors we are looking at a loss. He bought for £160k, EA reckons we could achieve £30k.

Mortgage is £130k, deposit was £30k.

I guess this is just a hit we will have to take if we want to move?

Neg. Equ. mainly due to a glut of new build apartments.

BettiePage

Ms_Piggy wrote: »

He bought for £160k, EA reckons we could achieve £30k.

Did you miss a 1 off that figure?

BettiePage

If there is as you say a glut of these apartments, you need to cut and run asap before the price drops further.

Edit: IMO of course.

Ms_Piggy_2

Yes - I meant to say EA reckons we could achieve £130k...

TBH, I'd rather just cut and run, but I'd rather that be a considered courses of action rather than a knee jerk IYSWIM.

wecanhelpu

Flats will be the first hit, the hardest hit and the last to recover if the market crashes. As you say there is already a glut of flats on the market and many owners will be in similar positions to yourselves.

Where abouts are you?
When was the flat bought?
And what are your plans?

Mr_Blek

There is a massive over supply of flats, especially 1 & 2 bedroom cardboard boxes. The housing market is heading one way and that's down. That 30k negative equity will soon be much, much more.

Ms_Piggy_2

wecanhelpu wrote: »

Where abouts are you?

http://www.rightmove.co.uk/action/publicsite.PropertySearch

wecanhelpu wrote: »

When was the flat bought?

Three years ago in August

wecanhelpu wrote: »

And what are your plans?

We want to move to a 'family' type house in Tyneside/Newcastle. We intend to stay put where-ever we do buy for the medium-long term.



So basically - the feedback I'm getting here is get out quick? :rotfl:

mpsavuk

Price it aggressively and get out fast so you don't end up chasing the market down.

wecanhelpu

Ms piggy - the link is to rightmove home page not your flat

ps I agree with what above posters have said

nollag2006

Take much of the feedback on this site with a large pinch of salt. For some reason the site seems to attract doom mongers who want to talk the market down.

What reasons did the EA give for the fall in value? Is this in line with trends locally ? What is the rush in selling ?

Is there anything you could do to boost the value ?

What have other EA’s said when they came around to value the flat?

Again, take care of anonymous advice on the internet from people who may have their own interests, rather than yours, at heart

Best of luck

Guy_Montag

Everyone on this thread seems to be a known (G)HPC member (as am I).

There's not a lot you can do - you can't build an extension & it's probably already in neutral colours. Have you asked the EA if there's anything they can suggest that will improve the value quickly & cheaply?

Otherwise, I'd take the hit & get out. Price it at £130k & see how you get on. It's annoying to lose £30k, but then if it's holding you back from getting on with the rest of your life, then do it. You never know you might get lucky.

A lot of people think there is an oversupply of new build flats in northern cities & that they will be hit severely in any downturn, which is why you are getting a lot of negative vibes here.


Good luck

edited to add:

put the postcode into nethouseprices.co.uk & see what similar places are going for.