Negative equity refers to the situation when the total price of the house falls below the loan amount. For example, if someone has a house with a market price of 900,000 yuan, but the mortgage loan and interest he owes is as high as 1 million yuan, then his negative equity rate is 10%.

Rapidly declining housing prices and high mortgage ratios are the two prerequisites for negative equity. These two premises do not currently exist - the state is controlling the proportion of mortgages, and housing prices in Qingdao are also rising. But it pays to know a little about negative equity.

Since car prices have been falling, it is easier to illustrate the problem by taking a car as an example: If someone gives you a BMW and he pays the down payment, you only need to repay the mortgage every month. However, you are faced with not only high monthly loan repayments, but also gas prices (it is said that the gas consumption per 100 kilometers is double digits), high maintenance fees, etc. When the car is resold, the price of the car has often dropped, and the proceeds from selling the car are not enough to repay the loan.

You understand at this time: Negative equity "means not only having nothing, but also owing a large debt to the bank, which is more miserable than having nothing."