AMSTERDAM – It will take another 10 years before households ‘under water’ stand are out of trouble. Expects that the Dutch Central Bank (DNB).
The Netherlands has 1.48 million households where the mortgage exceeds the value of the home. That’s a third of all households own a property. Although house prices rise again a bit, but it goes so slow that the gap between debt and value but very gradually smaller.
Troubleshooting
DNB expects housing prices in the coming years to increase each year by 2% to 3%. “But that’s not everywhere. In Groningen, Friesland and Zeeland prices fall yet,” said Job Swank, director of the bank. DNB does not know how many households the depths are in trouble. “It depends on when the house is sold. Who bought the expensive period 2002-2004 had to deal in many cases with a value of 20% to 30%,” says Swank. These households are unable to reduce their debt by additional repayments.
An attempt by Minister Dijssel Boom (Finance) to move the mortgage of a household that banks ‘under water’ is no penalty to close on at a lower rate, failed. Banks do not want to because she would miss interest income, they have recently indicated the minister there.
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