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Negative Equity

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With the small decreases in prices recently, are there likely to be some people who are likely to be in negative equity already? Albeit slight. At what percentage does 'Joe public' start to get nervous?

Wasn't Natasha Kaplinsky's house sold for less than she bought it?

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With the small decreases in prices recently, are there likely to be some people who are likely to be in negative equity already? Albeit slight. At what percentage does 'Joe public' start to get nervous?

Wasn't Natasha Kaplinsky's house sold for less than she bought it?

She earns a HUGE salary though. I reckon she had a sizable deposit.

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What about ordinary people?

Friends of mine bought off plan last year with the plan to 'flip' it in order to be able to live in the area they wanted (family, schools,jobs).

They have had it on the market for 11 months now with only 2 viewings. Houses are still being built on their estate and being marketed for only £5k less than they're asking. (they have carpets, curtains, fixtures, fittings and grass etc...) so they're not being greedy.

Whilst not in negative equity, they can't really afford to drop their price until people in their area of choice do. It's a viscious circle isn't it? I wonder who'll crack first?

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What about ordinary people?

Friends of mine bought off plan last year with the plan to 'flip' it in order to be able to live in the area they wanted (family, schools,jobs).

They have had it on the market for 11 months now with only 2 viewings. Houses are still being built on their estate and being marketed for only £5k less than they're asking. (they have carpets, curtains, fixtures, fittings and grass etc...) so  they're not being greedy.

Whilst not in negative equity, they can't really afford to drop their price until people in their area of choice do. It's a viscious circle isn't it? I wonder who'll crack first?

The people who find thier P.45 in the post will crack first.

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She bought the place in Hammersmith for £690k in 2001.

She accepted an offer of £680k earlier this year (almost £100k off the asking price of £775k), but the sale has since fallen through.

At the moment she's living in Fulham with her new investment banker fiance, while still owning the Hammersmith place with her ex.

So you can expect this to be a forced sale.

On breakfast TV a few weeks ago Andrew Winter was giving her the lowdown on the housing market, how it has now "stabilised", she looked very interested.

I think this was around the time the sale fell apart.

http://www.telegraph.co.uk/news/main.jhtml.../ixnewstop.html

The Blair's are losing huge amounts of money on their dodgy apartments in Bristol and the place in Belgravia.

Edited by BandWagon

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Houses are still being built on their estate and being marketed for only £5k less than they're asking. (they have carpets, curtains, fixtures, fittings and grass etc...) so  they're not being greedy.

So they want £5k more for a "used" house than a new one? If it was £5k less then they might be able to sell it, the new ones probably have developer enticements as well I guess - free carpets/stamp duty paid/free holiday and the like.

So I'd say they are being unrealistic.

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I think negative equity will happening on a large scale soon considering the idiotic multiples of yearly income people have taking out on mortgages, especially in the North East, my part of the country, where the only remotely affordable housing are in areas you would not wish to venture out in

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I think you are saying that: They dont mind selling for a lower price,

provided they can buy for a lower price.

Yes, I am.

They don't have to move, but it would make life a lot simpler, however the area of their choice is considered to be a bit snobby, with few houses that usually come onto the market and theres little chance of the locals dropping their prices for a while I'd think.

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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