The Times warns of negative equity:

Kez100

I'll feel sorry for those forced to sell their own home due to an unforseen change in circumstance and in NE. I won't feel sorry for those whose mortgage deals end and cannot afford SVR - that was always a possibility, just as BOE rate increases were always a possibility (we know they have been low for years). I won't feel sorry for second (and third and fourth and more) home owners as they made a choice to take the risk.

A home is not a risky investment. The number of FTBs that say on here 'we are stretching to afford this' It's ridiculous - they should have listened to themselves and rented.

pickles110564

!!!!!!? wrote: »

I feel sorry for the genuine people who just wanted to own their own home and took bad advice to buy into an overinflated market but they should be blaming the chancers who borrowed, borrowed, borrowed to speculate in the market.

Good point, but there must be a way that we can help everyone, FTB OO and BTL.
Some BTL are in for profit but as long as they look after their Tenant's why should they not benefit.

WTF?_2

pickles110564 wrote: »

Good point, but there must be a way that we can help everyone, FTB OO and BTL.
Some BTL are in for profit but as long as they look after their Tenant's why should they not benefit.

People simply should have done their sums before they bought into a grossly out of control market.

It clearly wasn't sustainable and has been that way since about 2003 (and was showing signs in 2001). We've had a succession of dubious measures by the government ever since then to keep the party going and we're now at the point where just about everything has been exhausted, making the bust that much worse.

The best way to help is to let the bust take its course quickly and try to stabilise the banking system - so that markets can return to norms. A programme to buy up defunct BTL stock like city centre apartments to provide more social housing wouldn't go amiss either.

Desperately trying to fight the 'correction' is going to draw things out for many years, Japan-style.

pickles110564

!!!!!!? wrote: »

We've had a succession of dubious measures by the government ever since then to keep the party going and we're now at the point where just about everything has been exhausted, making the bust that much worse.

I would like to see a scheme from GB where if you only own one home and have children, the government takes over their mortgage and they buy it back and 1% interest rate.
This would be cheaper than having them go bust and then the state putting them up in expensive Hotels/BB or privately rented homes.

brit1234

Aren't most of the repossessions buy to lets anyway. Surely thats good news for the majority.

ManAtHome

pickles110564 wrote: »

I would like to see a scheme from GB where if you only own one home and have children, the government takes over their mortgage and they buy it back and 1% interest rate.

Blimey, can see that working - think I'll cop for somebody with a kid and get a million quid mortgage (costing me a subsidised £800 a month), cheaper than renting...

Why won't this be available to the kidless..?

kristianwilliams

Can I get help for my rent if I cant afford it?

...figured not. :P

WTF?_2

kristianwilliams wrote: »

Can I get help for my rent if I cant afford it?

...figured not. :P

All the more reason why there's never been a better time to buy :rotfl:

glen8

I won't be laughing at anyone....im not that sad :eek:

What I will say is how on earth can someone say "DONT BUY NOW" or "People who have just bought are going to get stung"

ermm........I didn't think everyone was in the same boat?

If I won 20 million on the euro lottery would you still tell me to wait to buy a 2 million house? extreme example I know, but if you are able to sell high and buy low then why shouldn't someone buy now?

We have just bought the home of our dreams. We sold ours for 10% more then true market value and bought for 10% less with LOTS of extras. We have a nice wedge of equity and won't fall into negative unless house prices fall 40%

I'm 30 and don't want to wait years and years like some of you are suggesting. We want to start a family and therefore need a bigger house. We don't want to wait 5 years for a baby!!!! The mortgage will be paid off when I'm 55 which is good enough for us.

Not everyones in the same boat. I think people need to be a bit more specific in what they post. It winds me up reading posts that say "I don't think people should buy now". Why not put "I don't think first time buyers should buy now unless xyz" or "dont buy if you haven't got £xxxx"

baby_boomer

The Observer puts some figures on the negative equity issue

"According to the investment bank Citigroup, a quarter of a million of them now owe more than their properties are worth since house prices started to drop at the end of last year.Citigroup said prices had dipped by 7 per cent since the autumn and the bank's chief UK economist, Michael Saunders, yesterday warned that house prices could fall by 15 per cent or more by the end of 2009. Such a drop would leave at least a million homeowners in negative equity.