R3 SCMP Negative equity Jan 13 06

R3 SCMP Negative equity Jan 13 06 - South China Morning...

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South China Morning Post Negative equity: Who bears most pain 70pc of affected households bought at 1997 peak, says HKMA Friday, January 13, 2006 PROPERTY ENOCH YIU The typical homeowner struggling with negative equity is a middle-income household earning between $20,000 and $50,000 a month that bought a property below 600 square feet in the New Territories at the height of the 1997 boom. Hong Kong Monetary Authority chief executive Joseph Yam Chi-kwong has for the first time revealed who was carrying the burden of negative equity - where the outstanding mortgage exceeds the value of the property. Mr Yam said there were 9,000 properties with $16 billion outstanding at the end of the third quarter last year, down 91 per cent from the peak in June 2003 when there were 106,000 properties in negative equity to the tune of $165 billion. "I, of course, have great sympathy for those who find themselves in negative equity. Serving a mortgage that exceeds the current value of the property is bound to be distressing,
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This note was uploaded on 09/06/2010 for the course FINA FINA0805 taught by Professor Tse during the Spring '09 term at HKU.

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R3 SCMP Negative equity Jan 13 06 - South China Morning...

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