Property market outlook and negative equity?Make Text Bigger
Currently, markets such as property and stocks are near their highs. One cause is the rock bottom rates pushing investors into risky assets and away from cash.
So, what will happen to the property market over the next few years? Is it worth delaying purchases? Am I correct in assuming that as rates rise, property prices will decrease and rent will increase?
Additional novice question: When an individual has a buy to let mortgage, if property prices fall shortly after purchase, can the lender ever seek additional capital to cover any of the negative equity? Or is the borrower relatively “protected” from falls in prices, so long as they do not wish to sell?
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