My house hasn't appreciated in value in 12 years

[Jasmine1]

I’ve had my house for 12 years, and according to Zoopla, its value has increased 84% in that time.

This sounds fantastic, only I keep a general ledger for everything I have spent on my house, and it tells a different story.

When I factor in expenses like legal fees, mortgage interest (despite paying it off within nine years), and various home improvements, the total outlay matches its current valuation.

If I include the countless hours and resources I've poured into DIY projects, then I'm in negative equity. I certainly haven’t done anything unusual or been particularly expensive either.

My circumstances can’t be unique, but they have left me a bit conflicted.

On the one hand, I have a nice house to live in that’s been decorated to my taste, and it sure as hell beats renting. Yet I can’t shake the feeling that I have made a financial mistake by not buying a property that, while not cutting-edge, necessitated significant expenditure.

I’m curious: Are a lot of people in this position? Is the notion that you’ll always turn a profit on a house wrong? Should I care?

[hidetheelephants]

It's presumably stopped you getting wet and dying of exposure in the meantime, so it's not all bad..

[Simpo Two]

It's an interesting thought - like people saying that if they hadn't sold their Porsche in 1990 it would be worth £X now - but forgetting how much it would have cost them to keep for 34 years.

Stop keeping a ledger. You'll save time and be much happier

[Boosted LS1]

When you sell it you'll have lots of cash.

[Alex Z]

Deduct the amount you’d have spent on rent in the meantime from your calculations and report back.

[Jasmine1]

Alex Z said:

Deduct the amount you’d have spent on rent in the meantime from your calculations and report back.

I get that, it’s more the fact the money I’ve spent on home improvements you never get back.

It’ll make the house easier to sell in future but investment is the wrong word. It’s a bit like ordering a brand new car with options, I suppose.

[xx99xx]

Legal fees and mortgage interest are present with most house purchases so not sure you can factor them into the Zoopla appreciation. If you'd bought a different house in a different area you'd still have the fees and mortgage.

Home improvements and DIY are standard running costs of owning a home. If you hadn't done any of that work, the property would be worth less when you come to sell. Whether you'd be better off not spending on the house over the years and selling for a lower price due to it's poor condition is a bit of a lottery based on locations. But it's a given that well maintained homes sell easier and for more than run down gaffs that need a load of work.

[ChocolateFrog]

My parents have spent a good 80 or 90k just on kitchens in the last 10 years.

People spend mental amounts of money, atleast from my perspective.

I'm around £3k into my house over the last 7 years but 2k of that was doing the garden.

I prefer holidays to new kitchens and bathrooms.

[Dingu]

You don’t get a return on most money you spend

[JackJarvis]

Unless you're planning to move house, does it really matter? You're mortgage free in a house you've improved and renovated to your taste, that's a serious first world problem.

[Alex Z]

Jasmine1 said:

Alex Z said:

Deduct the amount you’d have spent on rent in the meantime from your calculations and report back.

I get that, it’s more the fact the money I’ve spent on home improvements you never get back.

It’ll make the house easier to sell in future but investment is the wrong word. It’s a bit like ordering a brand new car with options, I suppose.

If it’s genuine improvements like an extension then you’ll be increasing the value, but a lot of what people refer to as improvements like a new kitchen, carpets etc are really just maintenance to avoid deterioration. They’re just a cost of running a house.

[Wombat3]

I've spent quite a lot on mine over 10 years & it definitly hasn't really appreciated as much as it looks like it has on paper.

Arguably I'd be much better off if I'd stuck that money in a Global Tracker fund .

....but I've had a much better house to live in instead. I'm not sure how you value that but I'd do it again.

[bigandclever]

Jasmine1 said:

Should I care?

No, not really

[blueg33]

ChocolateFrog said:

My parents have spent a good 80 or 90k just on kitchens in the last 10 years.

People spend mental amounts of money, atleast from my perspective.

I'm around £3k into my house over the last 7 years but 2k of that was doing the garden.

I prefer holidays to new kitchens and bathrooms.

Your parents much be hard on kitchens!

In 20 years for us it’s one kitchen, three bathrooms, a cloakroom and a utility. Total about £45k on a property worth circa £1m now. Kitchen still looks good at 20 years old. Bathrooms at 5 years old are like things from a new fancy hotel.

[dickymint]

JackJarvis said:

Unless you're planning to move house, does it really matter? You're mortgage free in a house you've improved and renovated to your taste, that's a serious first world problem.

Somebody will be quids in though........when he snuffs it

Edited by dickymint on Thursday 25th April 06:31

[hotchy]

Jasmine1 said:

Alex Z said:

Deduct the amount you’d have spent on rent in the meantime from your calculations and report back.

I get that, it’s more the fact the money I’ve spent on home improvements you never get back.

It’ll make the house easier to sell in future but investment is the wrong word. It’s a bit like ordering a brand new car with options, I suppose.

That depends. If you buy a heap never decorated since 1960 then you'd increase the value more than your home improvements cost.
I spent £20k doing mine and it increased by over 60k. Improvements well spent. Decorating a house already in good nick is where home improvements make no difference to value.

[gangzoom]

dickymint said:

JackJarvis said:

Unless you're planning to move house, does it really matter? You're mortgage free in a house you've improved and renovated to your taste, that's a serious first world problem.

Somebody will be quids in though........when he snuffs it

Does anyone care about their house value when they are 6ft under?

Surely living in a home you enjoy is far more important than what numbers on a Zoopla says?

[Chicken Chaser]

Zoopla isn't always that accurate, you would be better off comparing similar with Rightmove

[OldPal]

More to life than a spreadsheet.

I spent a fortune on my garden last year and , yes while it probably has increased the value of my property it has also given my family a space to play,have fun and have bbq’s which is a far bigger concern over if it will make me money when I die/sell

[tight fart]

Are you single?