Negative Equity

[jammo]

Millions have it and almost certainly now know it. A lot of speculation gone bad, a heck of a lot of innocent recent FTB sadly have it but probably don't know about the extent of it yet. A fair few (and I know some) are "accidental landlords" - they had to move, so rented out where they were but couldn't sell. So when do we get the margin calls? Seems the debt free are fair game to pay for other peoples punt right now. Is that fair?

[Authoritarian]

Let those 'innocent' ftbers burn.

On another forum I had one boasting about her recent purchase (about a year ago) saying how she bought at the bottom and now prices are going up, up up!

A typical New Lab university graduate.

[jammo]

Let those 'innocent' ftbers burn.

On another forum I had one boasting about her recent purchase (about a year ago) saying how she bought at the bottom and now prices are going up, up up!

A typical New Lab university graduate.

I generally agree, it's the biggest purchase of your life (for 99% at least), you study the market, the situation. People who see a house as a quick money making scheme are parasites. Largely, they are tolerated by society. I saw a sickening bit (before switching off) of Location, location, location today and marked that Krusty was still spouting the same HPI mantra - stronger than ever! No new houses being built, 350k for a crappy terraced house seems reasonable - blah blah blah. What is missing is closure on all this nonsense.

[Authoritarian]

I generally agree, it's the biggest purchase of your life (for 99% at least), you study the market, the situation. People who see a house as a quick money making scheme are parasites. Largely, they are tolerated by society. I saw a sickening bit (before switching off) of Location, location, location today and marked that Krusty was still spouting the same HPI mantra - stronger than ever! No new houses being built, 350k for a crappy terraced house seems reasonable - blah blah blah. What is missing is closure on all this nonsense.

It only makes sense to pay that when prices are going up. When they're going down it should be more obvious what you're getting yourself into; a lifetime's worth of debt slavery.

But thanks to the outgoing government they've fixed it for us so that we can have high house prices forever, and the icing on the cake is that they've used my tax money to prop up the market, don't I at least get a badge?

[Snugglybear]

But thanks to the outgoing government they've fixed it for us so that we can have high house prices forever, and the icing on the cake is that they've used my tax money to prop up the market, don't I at least get a badge?

But, but, but... The outgoing government is gone. Surely the new government can organise lower house prices and stop using tax money to prop up the market.

If it wants to.

[Guest_James Toney_*]

i think soon there will be laods of people in negative equity, what happens to the poor people that will be looking for new mortages soon and their house is worth less, they will have truoble unless they can get another extra chunck of cash together

[dances with sheeple]

How many will default for various reasons? and what will the banks do, still hang on to the property or firesale?

[VeryMeanReversion]

what will the banks do, still hang on to the property or firesale?

They will panic when their jobs depend on it.

VMR.

[ccc]

It only makes sense to pay that when prices are going up. When they're going down it should be more obvious what you're getting yourself into; a lifetime's worth of debt slavery.

But thanks to the outgoing government they've fixed it for us so that we can have high house prices forever, and the icing on the cake is that they've used my tax money to prop up the market, don't I at least get a badge?

How about this one ? And to rub it in - the huge debt you are straining under is not even your own. Nice.

[Andy_K]

If it wants to.

Not if it wants to avoid another banking collapse...

[headrow]

When i bought my house in 1992 i reckon i was in negative equity for the next 5 years and to be honest i can't remember ever giving it a second thought. Other things in my life seemed so much more important than the value of a house.

I

[ingermany]

This is the thing that really makes me angry. This ramping up of the market shouldn't be allowed... I believe it's not allowed with shares and other investments, is it? I can believe it is true brainwashing.

What happened to impartiality?

Perhaps it'll only be when people will get seriously hurt, like what has been happening in Ireland, that broadcasting regulators will do something to ban this idiocy.

At least with the rubbish like Britain's Got the Talent Factor it's relatively innocuous (discounting the public mockery, shame, delusion, etc. lol).

No worse than Top Gear telling everyone to buy the next Aston Martin, and all those mock Train vs Boat vs Car races.........I think they are definitely fixed. I guess TG is a lot more entertaining, but the principles are the same. It's not News or Documentary and it doesn't need to be truthful. Most of the folks on the show are probably BBC employees posing as the public, like they do on Blue Peter.

[winkie]

Nobody forces anyone to buy a property, when you agree a price that price is set with buyer and seller agreement. A buyer buys at a price they are happy with otherwise why buy, if they pay cash and the price falls they lose money, like buying a car is depreciates over time but people still buy them.....If they borrow the money they take on a commitment to repay what they have borrowed plus interest that has to be factored into the overall cost....if you think prices will fall you can do one of two things.

i) Don't buy.

ii) Buy, but be prepared to live there longer.

Last resort if all else fails.....hand back the keys.

[Si1]

in effect their whole working life will be one big margin call

[jammo]

in effect their whole working life will be one big margin call

And everyone else, including the priced out who are paying to keep these prices up! That's not fair really, but it might be bearable (bear ) should prices fall to the affordable level. And I don't mean their idea of affordable either.

[Authoritarian]

in effect their whole working life will be one big margin call

[Si1]

And everyone else, including the priced out who are paying to keep these prices up! That's not fair really, but it might be bearable (bear ) should prices fall to the affordable level. And I don't mean their idea of affordable either.

My rent is NOT supporting these prices, my landlord's yield is very poor

[Stars]

My rent is NOT supporting these prices, my landlord's yield is very poor

Presently, perhaps not, but his overall benefits from you are pretty good though.

He collects rent from you and collects a bonus from the services created by your taxation while you collect nothing commensurate from taxation upon him. He also collects on the government's tax funded overt property price heightening campaigns.

These are benefits he receives that you create

[interestrateripoff]

i think soon there will be laods of people in negative equity, what happens to the poor people that will be looking for new mortages soon and their house is worth less, they will have truoble unless they can get another extra chunck of cash together

Wasn't it the case the extra chunk of cash these people where used to was MEW? They are gonna be kinda screwed if they actually have save to get the cash.

[Si1]

He collects rent from you

negative yield, irrelevent then

and collects a bonus from the services created by your taxation

what's that then?

while you collect nothing commensurate from taxation upon him.

He also collects on the government's tax funded overt property price heightening campaigns.

that aren't going to continue for much longer imho

[scottbeard]

When i bought my house in 1992 i reckon i was in negative equity for the next 5 years and to be honest i can't remember ever giving it a second thought. Other things in my life seemed so much more important than the value of a house.

I'm guessing you didn't get divorced or have to relocate during those 5 years then...?

[Guest absolutezero]

Last resort if all else fails.....hand back the keys.

So lose the house, the bank sells it at a massive reduction AND then you get chased to the ends of the Earth for the balance of the mortgage.

Brilliant plan.

[Stars]

negative yield, irrelevent then

you said small, not negative

And that isn't the heart of the matter anyway. Obviously, if you are forced to rent because prices are high, high prices are inflicting a cost on you despite a landlord's poor yields

what's that then?

The benefit to his asset value caused by your taxes and production.

that aren't going to continue for much longer imho

Yep - it must eventually end when the economy completely folds - do your best to savour this 'reversal' through the deluge of falling wages and rising unemployment

Edited June 12, 2010 by Stars

[Mr Yogi]

So lose the house, the bank sells it at a massive reduction AND then you get chased to the ends of the Earth for the balance of the mortgage.

Brilliant plan.

Not to the ends of the earth - just to the local county court where you file for bankruptcy. You're completely debt-free in minutes.

Let's face it ; if you've lost your house then there's nothing to worry about in going bankrupt. Your credit rating isn't going to be any worse and you lose all the credit card debt to boot.

The key is to organise a rented property first.

[Bloo Loo]

When i bought my house in 1992 i reckon i was in negative equity for the next 5 years and to be honest i can't remember ever giving it a second thought. Other things in my life seemed so much more important than the value of a house.

I

thats right...unless you are active, the value of an asset matters not a jot, apart from what it is doing for you.

However, if everyone was in NEG EQ...then bankers would have to WORK for a living, rather than securing their jobs on a ponzi financial scam that produces nothing but a vehicle for clever derivative scams.