Thursday, Apr 16, 2009
The real story.....without Government embelishments...
Mail: More than a million homeowners are in negative equity - and another million 'are on the edge'
'More than one million homeowners are currently in negative equity because of the house price crash, official figures have revealed for the first time. Almost a million more are days away from being plunged into the same situation if prices continue to drop. '
Posted by hpwatcher @ 08:40 PM (1662 views) Add Comment
13 Comments
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1. it_is_going_with_a_bang said...
"Many of these young buyers will have been lured on to the property ladder by 100 per cent plus mortgages on the promise that house prices would keep on rising and eventually pay off their debt."
Hmmm. Now what source of information could have lead them to believe that house prices keep going up and will never go down....... of course the 'Mail' would never suggest such a thing - after all that would be somewhat irresponsible.
2. cyril said...
even if house pices did keep rising, I still don't see how it can pay off anyone's debts
3. japanese uncle said...
More than a million or two homeowners who first of all should never have touched the 'ladder to hell'. They simply danced to the tune of the Getrichquick polka played by the Nulabier's Abbott & Costello aka the Silky and the Crash, composed, produced and directed by who, God knows, with the mantra 'you need to take a risk to get wealthy like Kirsty Allsop' Yes, those two millions are going to pay for the risk they stupidly took with their misery that last for the rest of their lives as slaves.
4. tyrellcorporation said...
Ju lucid and truthful. The most honest summing up I've heard for a while. You must be on the beers tonight!
5. mark wadsworth said...
Cyril, that's a brilliant slogan. I must remember that.
The article is stupendously bearish, there's no chit-chat about prices picking up soon or even a plea for a bail out. My favourite bit is this: "it effectively leaves borrowers trapped in their property", which wouldn't happen to a tenant, where the risk is being turfed out at short notice, for whatever reason.
When will they/we learn. It's either a place to live OR it's an "investment". Not both.
6. little professor said...
Proper linky for those that actually want to read the article:
http://www.dailymail.co.uk/news/article-1170767/More-million-homeowners-negative-equity--million-edge.html
Negative equity reached 2 million at the height of the 1990s crash - I reckon we could surpass that before we're done this time round.
7. I Call A Spade A Spade said...
:-) My house will never go into negative equity! :-)
Because I own it outright. :-)
8. Graham said...
It isn't just negative equity that stops these people moving. Ultimately many would want to 'move up' the property ladder, borrowing more money than no or negative equity and a mortgage already 10's of thousands of pounds in excess or what they would be able to achieve in 2009. Those who bought and own a home have no intention of selling it without buying another unless forced to do so and in that sense it makes no difference if it is negative equity, no equity, not enough equity or not enough earnings to extend their mortgage. Count up these people and you have the true number of individuals 'trapped' in their home already.
Those who complain about negative equity are often really complaining that the cash carousel has ground to a halt. They no longer feel like affluent achievers because they see no prospect of trading up from their 1 bed spacious apartment to something that anything other than a hamster could raise a family in.
9. will said...
More than a million homeowners in negative equity - that 'll affect around three million people then.
10. Old_traveller said...
Well, I believe this article is playing the victim card big time, precisely aimed to make sure VI's including government or political candidates contribute to arrest house price drops. This headline should scare the bejesus out of any potential political candidate when thinking about potential voters...
This article obviously does not show the positive side of the story, i.e. the "other" millions of potential FTB voters that can now only slightly better afford property...
11. Camping said...
and on a more poetic note:
In my beginning is my end. In succession
Houses rise and fall, crumble, are extended,
Are removed, destroyed, restored, or in their place
Is an open field, or a factory, or a by-pass.
East Coker T.s Eliot.
some things never change.....OWNED,
12. house said...
Why is anybody surprised with negative equity. With 100% to 125% mortgages, no capital repayment plan, interest only mortgages is a recipe for disaster. These people will just have to learn from their mistakes and realise as what Mark Wadsworth said "When will they/we learn. It's either a place to live OR it's an "investment". Not both".
13. penbat1 said...
And how may more people not in negative equity have had their deposit money partly or entirely wiped out.