question 2: what do you mean by negative assets?
Negative assets refer to "insolvency". The term negative assets describes that the market price of a property in the property market is lower than the loan originally used to purchase the property (building mortgage). Negative equity refers to the situation when a person's house price falls below the amount of loans he bears. Suppose a person's current house market price is only 95, yuan, but his loan to the bank is as high as 1 million yuan, then his negative equity ratio is 5%. Once the house becomes negative equity and the owner can't repay the loan, the bank will also bear the corresponding risks, because even if the house is forcibly sold, it can't get back the money it lent.
this phenomenon usually occurs after the general decline in property prices. This also means that if the borrower can't pay off the money used to buy the property, the lender can't make up the difference even if the property is confiscated or resold. When the borrower finally loses his property, he is still in debt.
Simply put, negative equity refers to the situation when the total house price falls below the loan amount. For example, if someone owns a suite, the market price is 1.5 million yuan at the time of purchase, and the current market price is 9, yuan after the price drop, but the mortgage loan and interest he owes are as high as 1 million yuan, then his negative asset ratio is 1%.
rapidly declining house prices and high mortgage ratio are two prerequisites for negative assets. These two premises do not exist at present, and the state is controlling the proportion of mortgage. In addition, house prices are also rising. But it is good to know a little about negative assets.
not all mortgage purchases will become negative assets. Generally speaking, consumers who buy houses with a cumulative increase of more than 5% in house prices are more likely to become negative assets; The higher the house price, the greater the probability and degree of mortgage buyers becoming negative assets. In the last round of cyclical changes in real estate in the United States, Hongkong and China, house prices dropped by more than 5%.
The liabilities of negative assets are greater than assets. According to the equation of assets = liabilities and owners' equity, it can be known that when liabilities are greater than assets, the net assets, that is, all the equity, are negative and the enterprise is in a loss state.
How to prevent the risks brought by negative assets
The risks brought by negative assets must be prevented before they happen, and it is best to take appropriate measures to prevent them before the house price deviates from the mainstream consumer groups. Or increase the supply of land and housing, or introduce hard price-fixing measures. Once the property market enters a sensitive period of high position and high risk, it is too late to take active measures. Just as the bubble is about to burst and the high embankment is about to collapse,
we can only make the best use of the situation, or reduce the bubble, or consolidate the embankment to discharge the flood, so as to gradually bring down the house price and prevent the house price from plummeting. I have always believed that in the sensitive period when the property market is at a high level and at a high risk, the repressive control policies should not be too rigid, too strong and too rigid, and it is more appropriate to adopt soft persuasion strategies and policies to avoid haste makes waste and backfire.
Investment house purchase belongs to real estate investment, so we must pay attention to the following three principles: First, seize the opportunity of investment. It can be said that any investment, even any trading, business and stock market, has already decided to win or lose when buying; In other words, winning or losing, winning or losing, and losing money are not mainly determined by selling, but mainly by buying. If you buy more, you will earn less. If you buy cheaply, you may earn more. The second is to invest within the ability. Many people borrow money to invest, and if they don't do well, they will fall into debt disputes and even lead to family ruin. It is best to make a difference within their own ability. The third is to have the concept of long-term interests. At present, most of the people who haunt various investment markets are not real investors, but speculators who are eager for quick success and instant benefit; To become a master of investment and financial management, we must hold the concept of long-term investment and long-term benefit.