What First Home Buyers Need to Know About Negative Equity

Are you prepared for the hidden threat lurking beneath the
surface of your first ever home purchase? Brace yourself for an
eye-opening discussion on the implications of negative equity on
you and your homeownership.


Now, you might be wondering, “what is negative equity?”


Negative equity isn't just a fancy term—it's a situation that can
disrupt your plans and cause financial stress. If you're a
first-time homebuyer, negative equity can be especially
worrisome, as it affects your ability to build equity and achieve
financial stability.


Imagine this: you just bought your dream home, and suddenly the
value of the house starts going down, putting you in a situation
where you owe more on your mortgage than what the home is
actually worth. 


That's negative equity, and it can be a real nightmare. 


But don’t fret!


In this episode, we break down negative equity in simple terms,
explaining its consequences and providing practical tips to avoid
or mitigate its risks. Don't let negative equity catch you off
guard! Tune in and take control of your financial future by
safeguarding your home investment.


Episode Highlights:


00:00 - Introduction


02:35 - Meighan’s special house of the week


03:20 - What is negative equity?


08:12 - The best advice for riding through downturns in the
property market


12:36 - How can deposit guarantees impact property value and
buyer risk?


15:10 - What is a mortgage prisoner?


20:00 - Good asset selection is the best way to manage risk


23:11 - The importance of choosing the right property


25:37 - What are some key strategies for building a financial
cushion?


30:10 - Why you shouldn’t be scared of the banks


Resources mentioned in this episode:


First home buyers most at risk of negative equity, especially
if they bought with low deposits in 2022 https://ab.co/3NCq1TX



Resources:



FREE TRAINING: How to make an educated
decision so you buy your first home with the right amount of
debt https://homebuyeracademy.com.au/webinar

Visit our website https://www.homebuyeracademy.com.au/

Learn how to buy property without making a mistake with our
10-step online course for first time home buyers
https://homebuyeracademy.com.au/YFHBG

If you have any questions or would like to be featured on our
show, contact us at: Your First Home Buyer Guide Podcast
support@homebuyeracademy.com.au

Looking for a Sydney Buyers Agent?
https://www.gooddeeds.com.au

Work with Veronica: https://www.veronicamorgan.com.au

Looking for a Brisbane Buyers Agent?
https://www.propertypursuit.com.au/

Work with Meighan: https://www.linkedin.com/in/meighanwells/



If you enjoyed today’s podcast, don’t forget to subscribe, rate,
and share the show! There’s more to come, so we hope to have you
along with us on this journey!


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