W
WetBimbette
People can't sell in negative equity so the market will stabilise for a decade while everything catches up
joe-90,
Of course people can sell in negative equity, that is what can happen when they go bust or when their lender reposseses the house.
People may be reluctant to sell in a negative equity position, however, if they lose their job and are mortgaged up to the hilt in a falling market and have run out of "grace" with their lender then they may not have a choice, ie, the decision may be taken away from them. This exact scenario happened to a neighbour of mine who bought a house just up the road from me when I lived up North. He bought the house with a very high percentage of borrowing, lost his job within months of completion and had to sell in a falling market in late 2008 early 2009 when prices were plummeting month on month. It cost him the best part of forty grand by the time he got shot of the house and he was glad to get out at that. Admittedly, he got shafted for a thick wad in stamp duty on purchase and agency fees on selling plus the usual other costs
There are more redundancies to come with all of these government cuts, less money on the ground filtering through the system impacts on all trades either directly or indirectly.
In your full time property development role these are good times for you as there are plenty of opportunities. Just in case you are not aware of the website the below link might be interesting:
http://www.housepricecrash.co.uk/forum/
It is a forum with a very high volume of traffic dedicated to the impending UK property crash. There are some seriously clued up people posting on there as well as the usual forum devotees.
Wet Bimbette
joe-90,
Of course people can sell in negative equity, that is what can happen when they go bust or when their lender reposseses the house.
People may be reluctant to sell in a negative equity position, however, if they lose their job and are mortgaged up to the hilt in a falling market and have run out of "grace" with their lender then they may not have a choice, ie, the decision may be taken away from them. This exact scenario happened to a neighbour of mine who bought a house just up the road from me when I lived up North. He bought the house with a very high percentage of borrowing, lost his job within months of completion and had to sell in a falling market in late 2008 early 2009 when prices were plummeting month on month. It cost him the best part of forty grand by the time he got shot of the house and he was glad to get out at that. Admittedly, he got shafted for a thick wad in stamp duty on purchase and agency fees on selling plus the usual other costs
There are more redundancies to come with all of these government cuts, less money on the ground filtering through the system impacts on all trades either directly or indirectly.
In your full time property development role these are good times for you as there are plenty of opportunities. Just in case you are not aware of the website the below link might be interesting:
http://www.housepricecrash.co.uk/forum/
It is a forum with a very high volume of traffic dedicated to the impending UK property crash. There are some seriously clued up people posting on there as well as the usual forum devotees.
Wet Bimbette
