Negative equity to affect new homebuyers |
16 2008 |
| Anyone who bought a house in the last couple of years is bound to be affected by negative equity. That is according to Firstrung, which said that price drops will have an impact on many new buyers. It suggests that many people are better off renting rather buying as most people want to avoid being in negative equity. "Negative equity is going to be an issue without a shadow of a doubt for everybody who bought over the last couple of years," said Paul Holmes, operations director at Firstrung. "But it depends on the deposit you put in, where you bought, what improvements you have made and you can rationalise in your own mind the benefits of ownership versus renting, whether it's affordable and whether you have made the right decision," he added. Falling house prices have led many to people to decide that it makes financial sense to rent rather than buy.  |
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