NJ Still Drowning in ‘Underwater’ Mortgages, New Study Reveals
Real estate price swings in the US are most dramatic on the coasts. Many property owners who purchased real estate when prices were sky high during housing bubble, particularly in urban areas are still underwater without any equity. The truth is that the value of a property only matters when you buy it or sell it just like a stock or another asset. The price, the value and your equity position while you own a property is less important than whether you can afford to keep up with mortgage payments and maintenance costs. Although having negative equity in a property is disconcerting, the key to thriving as a property owner is being realistic about what you can reasonably afford when you purchase and then putting adequate funds aside for unexpected expenses.
-Gerald