If you are prepared to loose a lot of cash now is the time to sell your house. Yes, there will be those who have no choice but to sell but if you are simply bored and looking for a change you could be loosing as much as £10k on a house valued at £100k. It really is this much money you will loose.
Despite the economic optimism the UK is in a serious mess and the housing market is going through a double dip crash. Seriously, there is no doubts or questions.
Estate agents are as keen to make a living and their 1% margin from your sale makes no difference at the end of the day. estate agents as always are showing their true colours and advising home owners selling to lower their prices. Why? Well, they will tell you that the market forces are at work and that you need to bite the bullet in order to get a buyer interested. When in fact what they should be saying is hold on to your property and ride through the storm, after 18 months all will be alot calmer and prices should stabalise.
There is no point hiding from the fact that the banks are not releasing cash for first time buyers and this is the main reason why the growth has faltered. It really is market demands taking house prices to an all time low but you must bear up because the next stage is going to get worse!
Interest rates will rise repayments will increase and the negative equity will seem like a noose around the neck that cannot be carried on any longer. So, do you bail out now and just write it off? This is a good question as the driving force behind any repayment plan should be based on individual assets growing and NOT based on paying off the debt the banks caused. This last point is all the more important when you consider why your house is falling in value and the price is going down and not up.
The banks ran up the clock and no one knew what time it was, now it is 1 o’clock the banks have run down and this is not hickery dickery. You like paying off the bankers debt and not having a penny to show for it?
During the early 90′s people were in the same situation and they simply threw their keys away and left the property. Is it going to be any different this time around? House prices are going to fall by another 20% over the next 18 months can you really sustain this amount of loss and afford to keep up repayments on your mortgage?
Here is an example. A house previously valued at £150k is now worth £130 it will go down as far as £110 within the next 18 months, that is a loss in value of £40k whilst the repayments remain the same you are paying for house in real terms that will take 50 years to pay back. And here is the crunch, no one can say for sure that house prices are ever going to go back up or at least not at the same rate as they did during the Blair government from 1997 things in the UK housing market really did change.
