Neg Equity - what to do?

Running_Horse

wecanhelpu wrote: »

Flats will be the first hit, the hardest hit and the last to recover if the market crashes.

This is exactly what happened in the late 80s; many flats became unsellable...However, have you considered holding on to it as a long term investment? Would the rent cover the mortgage?

Ms_Piggy_2

nollag2006 wrote: »

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

The EA says there is basically a glut of new builds in the area. I'm not sure what the general trends are, but having wated rightmove for the past few months things are moving very slowly and seem to be falling.

nollag2006 wrote: »

Is there anything you could do to boost the value ?

I wouldn't have thought so TBH. It's already neutrally decorated, we're in the process of decluttering etc. Not sure what else to do?

nollag2006 wrote: »

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

This is the first one who's been out. That said, he's actually only confirmed my suspiscions - this certainly isn't a bolt from the blue.

However, have you considered holding on to it as a long term investment? Would the rent cover the mortgage?

Rent may cover mortgage if we re-mortgage, but probably wouldn't also cover the maintenance/service charge..... It would if we went I/O.

Ms_Piggy_2

Guy_Montag wrote: »

edited to add:

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

http://www.nethouseprices.com/index.php?con=sold_prices_street_detail&locality=SUNDERLAND&town=SUNDERLAND&street=THE+CROFT&postcode=sr27nr&search_radius=150&cCode=EW&year=&house_style=&house_age=&house_type=&find_postcode=&find_locality=&find_town=&find_street=&eastingToSearch=43910&northingToSearch=55610&pcsaCode=SR2

Phirefly

Guy_Montag wrote: »

(G)HPC

(G)? Whats that?

wecanhelpu

Think global

Act local

Phirefly

.......eh?

Phirefly

aaaahhhhhh i see

Oh dear. We're a bunch of sad sacks for geeking round here but THATS just ridiculous

Guy_Montag

Phirefly wrote: »

aaaahhhhhh i see

Oh dear. We're a bunch of sad sacks for geeking round here but THATS just ridiculous

Harsh, but probably fair. You should join though, all the cool kids hang out there, embrace your inner geek.

Phirefly

Perhaps... Maybe I'll go and have a bit of a troll about and start positive, optimistic threads and other such mischeif. Or I could just get a life

epz_2

Ms_Piggy wrote: »

http://www.nethouseprices.com/index.php?con=sold_prices_street_detail&locality=SUNDERLAND&town=SUNDERLAND&street=THE+CROFT&postcode=sr27nr&search_radius=150&cCode=EW&year=&house_style=&house_age=&house_type=&find_postcode=&find_locality=&find_town=&find_street=&eastingToSearch=43910&northingToSearch=55610&pcsaCode=SR2

thats not really going to be much of a help as rates will have jumped 1.25% since the last sale, its basicly going to be 28% more expensive to borrow the same amount of cash.


frankly i would get shot, its only going to get worse and while its a kick in the teeth you are still exposed to 130K debt and as i read it your probably talking about 5-7 years for the market to recover from a crash and you'll be stuck there till then.

new builds do tend to drop a couple of years after they are released, they are competing against brand new places and usually bigger older places. my mate got stuck with a semi in glasgow for over a year when the market was going mental as there was just so many others on the market.