For anyone attempting to analyse the existing real estate market, there is a serious chance that they will struggle to arrive at a suitable level of understanding. After all, while the level of demand for British real estate remains high and the signs of growth are tangible, this does not negate the fact that spiralling prices pose a huge threat to long-term economic stability. Such a contradictory market can be particularly difficult for home-owners to navigate, especially those who are struggling with negative equity or a high price home that they are struggling to offload.
How to Deal with the Threat of Negative Equity in 2014
With this in mind, what practical steps can home-owners take to deal with the threat of negative equity and maximise the remaining value in their home in the current climate? Consider the following: –
- Be Realistic in terms of Price Point
In a market where prices continue to spiral, it may be tempting to attach a premium cost to your property. This is often a false economy, especially if your house is faced with the prospect of losing value or you are in a position where you can no longer afford to make consistent mortgage repayments. In this instance, it is important to be proactive and seek out an alternative before the issue becomes unmanageable. Setting a realistic price point is the ideal place to start, as this enables you to strike the ideal balance between maximising existing value and executing a quick sale. Remember, as prices soar you can offer a more competitive deal by slightly reducing the cost of your home.
- Adopt a Frugal and Sustainable Lifestyle
If you find yourself in a position where negative equity has yet to take hold but you would like to retain your property, it may be worth tackling this issue head-on and creating a purposeful household budget. With a viable income source and a willingness to embrace frugality, it is possible to increase your level of disposable income and manage your mortgage repayments more easily. On a similar note, you may also wish to consider using a marketable skill to increase your earning potential as a freelancer, while continuing your day-to-day role of employment.
- Consider Executing a Quick Home Sale
For those of you who are already mired in negative equity and have passed the point of no return, it is important to take decisive action before the situation worsens. This is a difficult step to take, as it is likely to result in a far from ideal outcome that would preferably be avoided at all costs. The most effective option at this stage is to partner with a professional and reputable partner such as the House Buyer Bureau, as this type of firm operate by making a fair cash offer for your home and completing the transaction within a seven day period.