Return Of Three Minute Real Estate Today’s Word Equity
This series is to promote a common understanding.
Real estate has it’s own jargon, it’s own colloquialisms, both industrially, locally, with-in the office and unique to the individual agents. Hopefully together we can promote a common understanding, one word at a time.
Today’s video contains personal opinion.
Nick,
There are only slight differences between positive and negative equity!
1. If the when you subtract the balance of your mortgage from your homes current value the number is negative, and you subtract the sale cost the resulting negative number gets bigger.
2. No one wants negtive equity!
Still, equity makes no difference unless you're buying or selling! Regardless of equity your home provide the same functions you bought it for at the same payment! Probably allot less than renting a similar property. Remember we're talking about homes, owner occupied homes, but rentals purchased for positive cash flow should also continue to provide it.
All bets are off if all the jobs are exported!
Bill
Bill I remember the blog that you did on this subject not to long ago, but it was good hear you put it into words. More people in this industry need to look at equity with the point of view that you presented, if they did we might have far less of these so call strategic defaults.
George,
Guilty! You're going to see more of this in the next few days.
I'm nothing if not redundant.
I'm also an optimist, while I believe that most strategic defaults are just plain stupid, I remain hopeful that some are only ignorant, Ignorance can be curred one word at a time. Stupid is terminal.
Bill
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