In spite of a recent modest recovery in house prices in some parts of the world, according to the RP Data Annual Equity Report, “3.7% of the homes in Australia are in negative equity”. Negative equity is a problem associated with the bust and boom cycles of the modern day economy. However, as the peaks and troughs become closer on the time scale, it is possible for homeowners to escape the trap of falling house prices.
The real problem exists if you bought at the peak of the property price boom and now find yourself in a situation where your loan is larger than the market price of similar houses. If you live in an area where prices have declined by 15% or more since you bought, selling your house now could be a challenge for most real estate agents. Unfortunately, it could take many years for a house to recover back to a price where you can sell without making a loss. You might be wondering, “How am I ever going to sell my house fast and move on?” Don’t worry, there are ways to minimise the pain now and release that pressure.
If you are a homeowner who has found yourself in negative equity, you do have options. One of those options is contacting a property buying company about taking over the finance payments on your property. Many of these companies consider homes in this state as wise long-term investments.
These investors are more than happy to buy your property now on the basis that they will make money over the long term. How many times have you heard of deals falling through because of the banks saying “No”? Well, just imagine a buyer who does not rely on the bank to buy your house. Do you not think the house will sell much quicker? Only a few investors in Australia are able to buy without fully relying on the banks.
Once you have managed to escape the trap of negative equity houses, you and your family will be able to move on successfully with your lives. This option is not only ideal for families caught in the trap, but also for homeowners who are:
• stuck with a house the agent cannot sell because traditional buyers are simply not offering enough to clear the debt
• just over the investment property because it is constantly taking money out of your own pockets with little hope of capital growth in the next few years
• struggling to keep up with their financial payments and at risk of repossession
• looking to relocate for work, etc. and do not have the time to wait for their house to sell
• developers unable to afford refurbishment of their properties in preparation for sale
• in the midst of divorce, which means assets are being divided and they must be freed from the financial obligation that comes with co-owning a home
For many people who currently have their homes on the market, time may be running out before prices fall once more. If you’re an owner trying to sell a negative equity house you may feel as if you cannot afford to decrease the price of your home any further because you are concerned about covering the associated costs of selling the property.
It is possible to sell negative equity houses. You can find out more about finding a solution for your dilemma by reading the blog post, Selling Negative Equity Houses. You will learn that you are not alone and there really is light at the end of this tunnel.
To find out how you can sell your house fast to private buyers in Australia visit SellMyHouseHere.com.au. Our recent blog posts will share useful insights on how you can sell a house fast [http://sellmyhousehere.com.au/blog] in any situation under any condition.
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