sorry but look, these companys are building homes that they know if they suddenly cut the cost and sell cheap its going to crash the housing market, all those people trying to sell their used homes etc are going to loose alot of money.
The developers don't care about anyone's pocket other than their own. I was just wondering why they preferred stagnation over price cutting. The issue of the price they paid for land makes sense to me, they have to lay off workers and remain dormant until they can make back the money on the land.
because if they crash the market, all those people wanting to move will get nothing for their current house, or won`t be able to afford to move anyway.
remember average house move costs £20,000 with stamp etc
if you buy your house on a 90% mortgage you owe 180,000, drops by 20%, very possible, your house is worth 160,000, now add on the cost of the move, you need to find 40,000 to move, or add it to your exsisting mortgage, no lender is going to give you that!
if you buy your house on a 90% mortgage you owe 180,000, drops by 20%, very possible, your house is worth 160,000, now add on the cost of the move, you need to find 40,000 to move, or add it to your exsisting mortgage, no lender is going to give you that!
20% of £180k is £36k making your house worth £144k!
If you have a 90% mortgage and your mortgage is for £180k your house is 'worth' £198k 20% of which is £39.6k im assuming thats what was ment?
sorry for being picky ive had a bad day! I might take it out on the trails
