The number of people who feel they have reached a problem incapable of a solution is growing.
It is all to do with money and the falling house prices of course, but here one has to differentiate between several categories.
The young have complications, senior citizens have complications, the well off have complications, the less well off have complications, and the ex-pats have complications.
All of these complications are subject to their own peculiarities and need separate understanding.
In the case of the young first time buyers, prices are getting lower almost by the day, so from that angle it is better news for them than it was some months ago.
However, getting a mortgage is a formidable task and is harder than finding the right house.
It may help to look at things from the point of view of the lender, who will not part with money providing he has funds to lend, without careful checking.
This means giving correct information as to the income which must be adequate to repay the loan.
The type and condition of the property plays a role because the lenders like to have as much security as possible in case of having to recover their money.
Ten worthy reliable borrowers are better than a hundred iffy ones.
Easy mortgages are a thing of the past, and getting the lender to lend is the biggest obstacle to jump.
Senior citizens, who bought their house more than twenty years ago, should have no problems.
Properties in big towns went up so much that they might have sold and bought something cheaper in the countryside to pocket the difference.
However, assuming they did, now that property prices have fallen and continue falling, they may have been better off had they stayed put without all the hassle.
Some might have borrowed against their property to help the youngsters, but since their house would have gone up significantly before they got their loan, it would not have gone down to a level where they would land in the negative equity zone, so they will muddle through.
The well off brigade have either made more money and got out in time, or else lost some back and remain rich unless they entered the housing game very late and bought at rather high prices.
Of course, they probably also suffered losses in other directions, and must now wait patiently for the markets to recover which may take quite a time.
The fix will come, but there is no quick fix.
Patience is the key, as good opportunities will emerge and to be ready to step in at the right time is essential.
The not so well off are usually very flexible.
They have known good days and bad days and by and large are survivors.
They are the good spenders when they are holding, and tighten their belts when things are going badly.
There is a section on a fixed income that bowl along at a steady pace come what may, who neither get an abundance of thrills nor an abundance of disappointments.
Finally, there is an army of ex-pats who sold their houses in U.
K.
at the right time, and bought their new property abroad at a reasonably low price with a very high pound.
Life was great, and those on a pension enjoyed the bonus of the very good exchange rate for years.
Now the prices of houses have also gone down, especially in Spain where most of the ex-pats have settled.
The pound has greatly lost value against the euro, meaning the pension is thus worth much less.
It is a double blow.
Does the answer lie in selling the house abroad and buying one back home now that the prices have fallen and will fall further? This time the exchange rate would be on their side!
It is all to do with money and the falling house prices of course, but here one has to differentiate between several categories.
The young have complications, senior citizens have complications, the well off have complications, the less well off have complications, and the ex-pats have complications.
All of these complications are subject to their own peculiarities and need separate understanding.
In the case of the young first time buyers, prices are getting lower almost by the day, so from that angle it is better news for them than it was some months ago.
However, getting a mortgage is a formidable task and is harder than finding the right house.
It may help to look at things from the point of view of the lender, who will not part with money providing he has funds to lend, without careful checking.
This means giving correct information as to the income which must be adequate to repay the loan.
The type and condition of the property plays a role because the lenders like to have as much security as possible in case of having to recover their money.
Ten worthy reliable borrowers are better than a hundred iffy ones.
Easy mortgages are a thing of the past, and getting the lender to lend is the biggest obstacle to jump.
Senior citizens, who bought their house more than twenty years ago, should have no problems.
Properties in big towns went up so much that they might have sold and bought something cheaper in the countryside to pocket the difference.
However, assuming they did, now that property prices have fallen and continue falling, they may have been better off had they stayed put without all the hassle.
Some might have borrowed against their property to help the youngsters, but since their house would have gone up significantly before they got their loan, it would not have gone down to a level where they would land in the negative equity zone, so they will muddle through.
The well off brigade have either made more money and got out in time, or else lost some back and remain rich unless they entered the housing game very late and bought at rather high prices.
Of course, they probably also suffered losses in other directions, and must now wait patiently for the markets to recover which may take quite a time.
The fix will come, but there is no quick fix.
Patience is the key, as good opportunities will emerge and to be ready to step in at the right time is essential.
The not so well off are usually very flexible.
They have known good days and bad days and by and large are survivors.
They are the good spenders when they are holding, and tighten their belts when things are going badly.
There is a section on a fixed income that bowl along at a steady pace come what may, who neither get an abundance of thrills nor an abundance of disappointments.
Finally, there is an army of ex-pats who sold their houses in U.
K.
at the right time, and bought their new property abroad at a reasonably low price with a very high pound.
Life was great, and those on a pension enjoyed the bonus of the very good exchange rate for years.
Now the prices of houses have also gone down, especially in Spain where most of the ex-pats have settled.
The pound has greatly lost value against the euro, meaning the pension is thus worth much less.
It is a double blow.
Does the answer lie in selling the house abroad and buying one back home now that the prices have fallen and will fall further? This time the exchange rate would be on their side!
Source...