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ScaredEitherWay

How To Be £60k In Negative Equity On A House You Own Outright

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Guest absolutezero
http://forums.moneysavingexpert.com/showth....html?t=1891903

House in the UK.

Rent it out.

Borrow money to buy in Spain, house £100k.

So, all lovely, house in UK £100k, house in Spain £100k

Now drop the UK market and change the exchange rate.

it is worth approx 220,000 euros, our main house, in which we live, is in uk, but cant touch that mortgage as it is a really low rate and is really separate from other 2

Oops. They don't even own the UK house outright.

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Guest absolutezero

Just had a quick read through some of the forums on there.

It makes my blood boil. Most of them are so stupid....

I imagine a lot of them couldn't find their own way home in the dark!

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I wonder how many people are in negative equity on a house they own due to helping their offspring get on the ladder?

I know of couple who wished they hadn't bothered, young couple spilt up after being in the house a year. Nasty.

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I wonder how many people are in negative equity on a house they own due to helping their offspring get on the ladder?

I know of couple who wished they hadn't bothered, young couple spilt up after being in the house a year. Nasty.

It makes me glad I grew up poor and with a father who wouldn't have lent me £10 if the moneylenders were at the door ... you learn pretty quick to sort your own life out.

I'd hate to spend the next 50 years knowing I'd wrecked my parents' life ...

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It makes me glad I grew up poor and with a father who wouldn't have lent me £10 if the moneylenders were at the door ... you learn pretty quick to sort your own life out.

I'd hate to spend the next 50 years knowing I'd wrecked my parents' life ...

I was brought up with a similar father.I would never have even asked, I knew with absolute certainty the answer would be no.

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Guest absolutezero
I was brought up with a similar father.I would never have even asked, I knew with absolute certainty the answer would be no.

Which is the problem these days.

People can't say no.

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It makes me glad I grew up poor and with a father who wouldn't have lent me £10 if the moneylenders were at the door ... you learn pretty quick to sort your own life out.

I'd hate to spend the next 50 years knowing I'd wrecked my parents' life ...

I agree, I would never ask my parents for anything beyond a temporary roof over my head or money for subsistence food. Years ago, they did offer and I politely declined, shame some of my siblings didn't do the same. ;)

My guess is there was some deficiency in their upbringing the parents have guilt over, something like always being at work and not spending much time with them, result of very unplanned pregnancy. They then over-compensate when they're adults

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I agree, I would never ask my parents for anything beyond a temporary roof over my head or money for subsistence food. Years ago, they did offer and I politely declined, shame some of my siblings didn't do the same. ;)

My guess is there was some deficiency in their upbringing the parents have guilt over, something like always being at work and not spending much time with them, result of very unplanned pregnancy. They then over-compensate when they're adults

There seems to be some sort of hard wired thinking that the next generation has to exceed the material weath of the last.

For a long time, this has been true, a radical change of thinking will be required.

It is going to be hard for some parents to bear the thought that their children may have a lower standard of living than they enjoyed. It is indeed a different world to my fathers.

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Guest Steve Cook
There seems to be some sort of hard wired thinking that the next generation has to exceed the material weath of the last.

For a long time, this has been true, a radical change of thinking will be required.

It is going to be hard for some parents to bear the thought that their children may have a lower standard of living than they enjoyed. It is indeed a different world to my fathers.

We'd better get used to it. For the majority of people, for the next two or three generations it is going to be down not up.

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We'd better get used to it. For the majority of people, for the next two or three generations it is going to be down not up.

Sadly the education system and all it's attendant stuff is still in perpetual growth mode. Expectation is going to take some changing.

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Sadly the education system and all it's attendant stuff is still in perpetual growth mode. Expectation is going to take some changing.

The education promises to fulfil parent's dreams of a fantastic career for their offspring. The uncomfortable truth is most children are unlikely to be significantly brighter than the aggregate of their parent's intellects.

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There seems to be some sort of hard wired thinking that the next generation has to exceed the material weath of the last.

For a long time, this has been true, a radical change of thinking will be required.

It is going to be hard for some parents to bear the thought that their children may have a lower standard of living than they enjoyed. It is indeed a different world to my fathers.

i think that's called progress.

and anyway, owning your own home [even outright] doesn't necessarily mean a higher standard of living.

I've heard plenty of the boomer attitude of 'well, if xyz was good enough for us' so i'm not sure they actually like progress or rather some of them sneer at a raising of expectation, as for the higher standard of living.....that, a lot of them just accept, because they believe long working hours and other things they experienced like 15% interest rates for a few hours, will have directly led to a better standard of living for offspring.

again, i think even they recognize progress. Although gordon brown's policies in the area of housing is really about restricting supply of desirable housing at non-bubble prices and increasing levels of competition amongst new buyers.

unfortunately boomers who assit ftb's are playing along with this govt. policy by furnishing offspring with part of the 25% and 40% required in a lot of instances. What choice do they have ? Renting, or atleast paying rent out of your own salary, is a mug's game.

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I was brought up with a similar father.I would never have even asked, I knew with absolute certainty the answer would be no.

I always say no.

the wife caves and I get it in the neck.

They also eat my food....use my special butter, use my mugs, and break my computers. This is all fine, but they have a fridge full of food which they like ( muller lite, low cholesterol spreads, ready meals), they have their own mugs but wont clean them and they all have their own computers...which they break.

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I wonder how many people are in negative equity on a house they own due to helping their offspring get on the ladder?

I know of couple who wished they hadn't bothered, young couple spilt up after being in the house a year. Nasty.

I know two couples that bought tiny properties for about 150k, the maximum they could afford, so that they could get married and move their lives forward.. both relationships failed within 5 years. Neither couple had the space for a child in their little box, and the little box meant they had no place to hide from one another. The little boxes, too small for visitors, for children, a scalelectric set on the living room floor, made them split. That and the 800 per month interest only mortgage.

The next rung on the ladder was just too far.. they were stretched enough on the first.

****** the banks. ****** Labour.

Edited by IwantaHome

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I was brought up with a similar father.I would never have even asked, I knew with absolute certainty the answer would be no.

Mine were there when i needed them - i intend to repay the thought, not just the money.

I think i've got them to thank for realising that you don't really appreciate the value of anything unless you've earnt it yourself - i wouldn't dream of asking them to help me out with a deposit on a house. If i can't afford something like that myself, then i can't afford it.

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Update:

Yes, we have 3 houses, sorry to be unclear

UK worth £250,000, owe on mortgage £82,000, 12 years left. cant change that mortgage really low rate.

UK worth £ 85,000 no mortgage, receive rental of £350pm

Spain worth £191,000 owe on mortgage £127,000, 21 years left (6.487% at moment)

It is the exchange rate which is the killer though??

They have over £300K of equity. I'd suggest to stop whining and count their blessings.

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Update:

They have over £300K of equity. I'd suggest to stop whining and count their blessings.

If they took out a mortgage in Euros on the Spanish property why are they listing it in £s??

:blink:

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Can somone explain to me why they just cna't sell the spanish flat? They say it's worth E220,000.

I'm a bit confused by this.

Spain are having a worse time than the UK. No properties are selling. Euro 220k is way out of the reach of most Spanish people.

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