Are you in negative equity?

[im-dan.glee]

According to the headlines theres 1 million brits in negative equity , and it also says the majority of them are people who bought their houses from 2007 onwards before the drop in house prices.

Has anyone here been unlucky?

[Bbbananas]

Not me - I only rent. But my son bought in 2007, added on a loan for renovations, now finds himself in N.E.

He's just going to sit tight and wait...

[ummmm]

No....I got my house too long ago. I've just sold it and made a very nice profit.

BF's paid silly money for his house compared to todays prices.

[rinkins]

You are lucky you guys! Sadly I am. Bought in 2007 too. Fixed MTG for 5 years. Broke up with tw@t of an OH last year and obviously can't sell house! Would be great if I could then I would finally be rid! :-/

[Rollo]

Happily I am not in that "unlucky" situation.

But it only matters if you want/need to sell, or you can't afford to keep paying for the mortgage.

Otherwise sit tight and wait for prices to go back up. That may take a few years.

[im-dan.glee]

Sadly rollo they reckon it will be many years and with the job market as it is many folk cant sell their houses to move for work as theyd be short of money and unable to get another mortgage.

Its all very worrying.

[T&S]

The whole point of being in negative equity is that you are looking to sell. There will be unfortunate instances, such as rinkins. I expect a lot of the people suffering from NE are those who bought property as an investment and not to live in. The sorts of people who make it difficult for 1st time buyers to get on the property ladder. I don't have much sympathy for these individuals.

[New Judge]

I'm in "negative equity".

I bought a car two years ago, and it is now worth about half what I paid for it.

Negative equity in property is not a problem unless:

(a) you want to sell up - and even then it can be overcome if you're buying something else, provided there is a general drop in prices, or

(b) you can no longer service your mortgage.

People buying property should realise that its value can (and often does) go down as well as up.

[abbie1977]

New Judge, I'm the same as you. I bought a car this time last year and its value has dived. :(

[craft1948]

bought my current property in 2006 but paid cash..........may be worth less now than when I bought it but as I have no intention of moving again doesn't really matter.....

[annie0000]

At least this time, the interest rates are low, so that should mitigate the negative equity factor by allowing the debt to be reduced faster as long as you don't reduce your payments. Unless of course you are on a fixed mortgage and I guess that had rates gone up they wouldn't be complaining....