Negetive Equity

[brooke]

Just wondering how this is going to effect people?

I think small business and entrepenuers could well be hit hard if they stretched themselves, as is their nature, especially if they brought at the peak.

Were in for what they reckon will be 2-3 years of falling house prices, which will result in what they describe as a 10 year trough, that is the amount of time it will take house prices to get back to their 2007 peak after the crash and allowing for the subsequent rise.

Are there any tax breaks on negetive equity? Any signs of government handouts?

[Brian Turner]

I think so long as you're looking at the long term then negative equity really shouldn't be a problem.

Got to admit, I wanted to hold off buying a property for as long as possible, but in the end, I'm glad I jumped on the property ladder 18 months ago.

Not too worried about potential house price falls as I've been over paying my mortgage already.

Even still, always had it in mind that in a worse case scenario we all buy a little caravan and live in that. Not fun on rainy days I'm sure, but so long as there's a roof above our heads, that's all that matters.

2c.

[brooke]

i was wondering more along the lines of wether small businesses had used the equity from their home against business ventures etc? MEW in particular.

I think that the small business man is quite safe really because they call their own shots, ie, wont be made redundent. Plus as times get tougher people will be more likely to turn to the internet as a cheap way of getting new business.

I just think this whole idea of negitive equity is really strange. After all, a home is a home.

Must say, I find it strange that no one on this site for entrpenaurs never mentioned BTL before and discussed the BTL 125% mortgage world etc. Seemed there was money to be made there.

im surprised brian doesn't have a forum on it?

[Brian Turner]

Originally Posted by brooke

im surprised brian doesn't have a forum on it?

Here you go: http://www.homemove.co.uk/forums/

The whole BLT market is very different, and going downhill now, though - those 125% mortgages are long gone.

However, definitely something I'm hoping to cover more of here - the whole finance and investment side, actually.

I think it has to be an integral part of business, but for many start-ups and SME's is something that develops only with maturity of business - as an option, whether exercised or not.

2c.