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Twenty per cent of homeowners who bought in 2007 are in negative equity
Twenty per cent of homeowners who bought in 2007 are in negative equity
According to a study by Property website Rightmove, nearly a fifth of homeowners who bought their property in 2007 are in negative equity, whereby the value of their home is lower than the outstanding mortgage.
Maidenhead,
Berkshire,
United Kingdom
(prbd.net)
08/12/2012
According to a study by Property website Rightmove, nearly a fifth of homeowners who bought their property in 2007 are in negative equity, whereby the value of their home is lower than the outstanding mortgage.
In addition, 20 per cent of homeowners believe that their property is worth less than it was when they made the original purchase.
Many homeowners also believe that prices will remain the same into next year, with a quarter expecting prices to fall.
House prices and market confidence have a larger impact on the UK Economy than other European countries as we are a nation of homeowners.
Gill Alton runs Alton Property Partners, offering a residential investment property service to help you build a portfolio for a secure financial future. Alton Property Partners provides a comprehensive and personal Property Portfolio Building Service for buy to let investment in the UK. Gill believes that property could be the answer to your pension. She says:
"Unfortunately with the recent drop in the prices due to the financial crisis and the tightening of lending families who bought at the height of the market, gearing themselves highly with minimal deposit may well have found that currently they are in negative equity.
"If they are looking to move on their choices are limited, unless they are able to invest more money into the new home they wish to trade up too.
"This often isn't possible however so they may need to sit tight for a little longer while the market rebalances, prior to growth occurring.
"Historically we know that the housing market follows a cyclical pattern, whereby a period of steep growth is always followed with a period of slowing down and realignment of prices. The situation we find ourselves in currently therefore is not a surprise to those who read the markets, but the depth and severity of the financial crisis is worse than a lot had predicted and has caught a few people unaware.
"Given that and the tremendous economic pressure from the Recession and the continuing Eurozone crisis I believe the housing market is actually holding up significantly well and although the number of transactions are down activity is still happening.
"Now is actually the time when good bargains are found, and it is particularly good to purchase investment property to build your family wealth and security. Purchasing for investment purposes your focus should be on cash flow, and not simply Capital Growth. Capital Growth should be viewed as a bonus, however if you have a property producing you a steady cash flow the underlying value of the property and the movement in the marketplace can become to some extent irrelevant."
Notes to Editors
Gill Alton is the founder of Alton Property Partners, which provides a comprehensive and personal Property Portfolio Building Service for buy to let investment in the UK. To find out how property could be the answer to your pension worries, click here. Alton Property Partners manage the entire investment process, from sourcing property at a discounted value, co-ordinating the Mortgage, arranging the refurbishment, right through to ensuring it is ready for the rental market
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About
Gill Alton is the founder of Alton Property Partners, which provides a comprehensive and personal Property Portfolio Building Service for buy to let investment in the UK.
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