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Mancghirl

Even The Observer Admits The Game Is Up

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http://observer.guardian.co.uk/cash/story/0,,2156239,00.html

Dubious equity release geezer says 'sell now while you still can'.

Soothsayer or just trying to drum up a bit of business??

No. I think the guy is spot on. Eqity release will become very difficult very soon. Because who wants to give you a mortgage on a house that loses ten thousands in value each year.

New-build property prices could also experience a fall if buy-to-let investors hold off from committing their money; and Stansfield says he would be surprised if buy-to-letters continued pouring money into a market where price increases were slowing.

'It's very difficult to cover your monthly outgoings through rent at the moment,' he says. 'It would seem an odd time to invest. The new-build sector might feel a bit of a pinch from that.'

Edited by Goldfinger

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Guest DissipatedYouthIsValuable
No. I think the guy is spot on. Eqity release will become very difficult very soon. Because who wants to give you a mortgage on a house that loses ten thousands in value each year.

By the same token, why the hell would he want to give anyone equity on a falling asset?

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By the same token, why the hell would he want to give anyone equity on a falling asset?
As the mortgage increases through rolled up interest and the value of your home changes with market conditions, your net equity in the property changes daily. You cannot therefore guarantee that you can leave any of the property as an inheritance for your children.

<_<

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http://observer.guardian.co.uk/cash/story/0,,2156239,00.html

Dubious equity release geezer says 'sell now while you still can'.

Soothsayer or just trying to drum up a bit of business??

he sounds like an idiot - why is he trying to peddle secured loans against assets that he feels are going to be worth less than the loans secured on them? Unless his firm acts as an agent selling on other firms' financial equity release products.... Or unless he's making it up, doesn't really think falls are imminent, but it's a good absurd arguiment to get business.

the rest of the article sounds very non-crashist

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