How far will house prices fall [volume 4]
Discussion
Derek Smith said:
Direct reply to the headed question.
Bought my house 42 months ago. Next door is a similar house, but without my extension. There was an old girl who lived there up until three weeks ago. The downstairs is clean but with old fashioned decoration. Upstairs has been unused for some years and needs a bit of work. I'd budget for new windows, new heating but the oven/hob is hardly used and fairly modern.
Probate is going through and a chap came to value the house for probate, which I'm told undercuts the resale value to an extent.
Going by the estimate, even if my larger house attracts the same price as the valuation, its value has increased by a minute fraction under 32%. Not much use to me as I doubt I will move again, but sweet news for my inheritors.
Bought my house 42 months ago. Next door is a similar house, but without my extension. There was an old girl who lived there up until three weeks ago. The downstairs is clean but with old fashioned decoration. Upstairs has been unused for some years and needs a bit of work. I'd budget for new windows, new heating but the oven/hob is hardly used and fairly modern.
Probate is going through and a chap came to value the house for probate, which I'm told undercuts the resale value to an extent.
Going by the estimate, even if my larger house attracts the same price as the valuation, its value has increased by a minute fraction under 32%. Not much use to me as I doubt I will move again, but sweet news for my inheritors.
I genuinely do not get why we celebrate the cost of homes increasing in the UK and I think I'm just about alone on that.
If my home goes up, it just means my kids will eventually need a bigger mortgage if they want to buy or have to pay more rent as their landlord has to pay more so will charge more. Or indeed will be a large pension fund! I'd rather they didn't become even more enslaved through debt just to have accommodation (or spend their days wishing for inheritance!).
If that means my house doesn't go up, I don't care. It's a home. So long as I can service the cost, I don't care what someone with a vested interest tells me how much it's gone up or how much more it would cost to buy the next house up.
Of course, if you're an estate agent, mortgage provider or politician then increases are all super news - increased commission, increased loan values and continued votes.
Pork said:
Derek Smith said:
Direct reply to the headed question.
Bought my house 42 months ago. Next door is a similar house, but without my extension. There was an old girl who lived there up until three weeks ago. The downstairs is clean but with old fashioned decoration. Upstairs has been unused for some years and needs a bit of work. I'd budget for new windows, new heating but the oven/hob is hardly used and fairly modern.
Probate is going through and a chap came to value the house for probate, which I'm told undercuts the resale value to an extent.
Going by the estimate, even if my larger house attracts the same price as the valuation, its value has increased by a minute fraction under 32%. Not much use to me as I doubt I will move again, but sweet news for my inheritors.
Bought my house 42 months ago. Next door is a similar house, but without my extension. There was an old girl who lived there up until three weeks ago. The downstairs is clean but with old fashioned decoration. Upstairs has been unused for some years and needs a bit of work. I'd budget for new windows, new heating but the oven/hob is hardly used and fairly modern.
Probate is going through and a chap came to value the house for probate, which I'm told undercuts the resale value to an extent.
Going by the estimate, even if my larger house attracts the same price as the valuation, its value has increased by a minute fraction under 32%. Not much use to me as I doubt I will move again, but sweet news for my inheritors.
I genuinely do not get why we celebrate the cost of homes increasing in the UK and I think I'm just about alone on that.
If my home goes up, it just means my kids will eventually need a bigger mortgage if they want to buy or have to pay more rent as their landlord has to pay more so will charge more. Or indeed will be a large pension fund! I'd rather they didn't become even more enslaved through debt just to have accommodation (or spend their days wishing for inheritance!).
If that means my house doesn't go up, I don't care. It's a home. So long as I can service the cost, I don't care what someone with a vested interest tells me how much it's gone up or how much more it would cost to buy the next house up.
Of course, if you're an estate agent, mortgage provider or politician then increases are all super news - increased commission, increased loan values and continued votes.
Burwood said:
we celebrate it because, firstly, it makes people feel good that they made a good call/investment.Secondly, it's a safety net in the event you need some cash. In Australasia there is a ticking ..... as so many fools remortgage to buy flash cars, handbags and hols. Some areas over there have risen 250% in 5 years. makes London look tame.
That has happened an awful lot here too. I remember a mate with and interest only mortgage withdrawing equity to buy a new car. Madness.I understand it makes people feel good, so does eating sugar. Short term, it's harmless. Doing it for decades is less so.
If your a sensible chap then the fact your value is rising your getting better repayment rates on your mortgage. I bought my first house 2 years ago and had it valued yesterday, 32% increase in value. That shaves a huge chunk off what I'll end up paying on my mortgage, damn right I'm happy that money will end up in my pocket and any future kids. I'd be perfectly happy for the increase to slow down but while it's clearly rising I want to live in somewhere that rises with it!
MDMetal said:
If your a sensible chap then the fact your value is rising your getting better repayment rates on your mortgage. I bought my first house 2 years ago and had it valued yesterday, 32% increase in value. That shaves a huge chunk off what I'll end up paying on my mortgage, damn right I'm happy that money will end up in my pocket and any future kids. I'd be perfectly happy for the increase to slow down but while it's clearly rising I want to live in somewhere that rises with it!
a LTV increase has been the main benefit to me.My LTV went from 80% to 50% in 18 months which got me a much better deal.
Being in an up and coming area means your house may increase more than surrounding areas too which is what happened to me so I 'cashed in' on the extra and bought a bigger place in an area which wasnt rising as fast.
p1stonhead said:
MDMetal said:
If your a sensible chap then the fact your value is rising your getting better repayment rates on your mortgage. I bought my first house 2 years ago and had it valued yesterday, 32% increase in value. That shaves a huge chunk off what I'll end up paying on my mortgage, damn right I'm happy that money will end up in my pocket and any future kids. I'd be perfectly happy for the increase to slow down but while it's clearly rising I want to live in somewhere that rises with it!
a LTV increase has been the main benefit to me.My LTV went from 80% to 50% in 18 months which got me a much better deal.
Being in an up and coming area means your house may increase more than surrounding areas too which is what happened to me so I 'cashed in' on the extra and bought a bigger place in an area which wasnt rising as fast.
It's certainly nice to know all the time spent agonising over what house to go for was rewarding both in terms of having a nice place and the finances working out. 
p1stonhead said:
a LTV increase has been the main benefit to me.My LTV went from 80% to 50% in 18 months which got me a much better deal.
Being in an up and coming area means your house may increase more than surrounding areas too which is what happened to me so I 'cashed in' on the extra and bought a bigger place in an area which wasnt rising as fast.
okgo said:
Where was that in Surrey out of interest?
Mine was RH2.My step brother's house in Sutton just sold for £375,000 having bought it 14 months ago for £249,950. They didnt do one thing to it. No upgrades, modifications or decorating. They just bought a 4 bed house near me for £460,000 and are only 24/25 with average pay jobs (I dont know the figure but assume £80k combined). Their deposit however is now £175k so 'only' a 3.5x mortgage. They certainly did ok out of rising prices but only because the moved area which is the key.
Edited by p1stonhead on Friday 4th March 15:05
p1stonhead said:
Mine was RH2.
My step brother's house in Sutton just sold for £375,000 having bought it 14 months ago for £249,950. They didnt do one thing to it. No upgrades, modifications or decorating. They just bought a 4 bed house near me for £460,000 and are only 24/25 with average pay jobs (I dont know the figure but assume £80k combined). Their deposit however is now £175k so 'only' a 3.5x mortgage. They certainly did ok out of rising prices but only because the moved area which is the key.
I suppose the nice thing about moving from Sutton to anywhere else is that you don't feel you've given much up in the move.My step brother's house in Sutton just sold for £375,000 having bought it 14 months ago for £249,950. They didnt do one thing to it. No upgrades, modifications or decorating. They just bought a 4 bed house near me for £460,000 and are only 24/25 with average pay jobs (I dont know the figure but assume £80k combined). Their deposit however is now £175k so 'only' a 3.5x mortgage. They certainly did ok out of rising prices but only because the moved area which is the key.
Edited by p1stonhead on Friday 4th March 15:05
okgo said:
p1stonhead said:
Mine was RH2.
My step brother's house in Sutton just sold for £375,000 having bought it 14 months ago for £249,950. They didnt do one thing to it. No upgrades, modifications or decorating. They just bought a 4 bed house near me for £460,000 and are only 24/25 with average pay jobs (I dont know the figure but assume £80k combined). Their deposit however is now £175k so 'only' a 3.5x mortgage. They certainly did ok out of rising prices but only because the moved area which is the key.
I suppose the nice thing about moving from Sutton to anywhere else is that you don't feel you've given much up in the move.My step brother's house in Sutton just sold for £375,000 having bought it 14 months ago for £249,950. They didnt do one thing to it. No upgrades, modifications or decorating. They just bought a 4 bed house near me for £460,000 and are only 24/25 with average pay jobs (I dont know the figure but assume £80k combined). Their deposit however is now £175k so 'only' a 3.5x mortgage. They certainly did ok out of rising prices but only because the moved area which is the key.
Edited by p1stonhead on Friday 4th March 15:05
walm said:
What happened? The stationery cupboard AGAIN? 
Let's just say my annual compensation was below expectation and the 180/270 degree feedback I provided to management was not that flattering. I may have even used a couple of swear words in front of HR. No worries - a normal day in the City. My in-tray has a few useful leads and I needed a break anyway.Anyway, back to the Black Friday comment .. ?
Edited by fido on Friday 4th March 15:44
Pork said:
I genuinely do not get why we celebrate the cost of homes increasing in the UK and I think I'm just about alone on that.
If my home goes up, it just means my kids will eventually need a bigger mortgage if they want to buy or have to pay more rent as their landlord has to pay more so will charge more. Or indeed will be a large pension fund! I'd rather they didn't become even more enslaved through debt just to have accommodation (or spend their days wishing for inheritance!).
If that means my house doesn't go up, I don't care. It's a home. So long as I can service the cost, I don't care what someone with a vested interest tells me how much it's gone up or how much more it would cost to buy the next house up.
Of course, if you're an estate agent, mortgage provider or politician then increases are all super news - increased commission, increased loan values and continued votes.
you are not alone in that train of thought at all.If my home goes up, it just means my kids will eventually need a bigger mortgage if they want to buy or have to pay more rent as their landlord has to pay more so will charge more. Or indeed will be a large pension fund! I'd rather they didn't become even more enslaved through debt just to have accommodation (or spend their days wishing for inheritance!).
If that means my house doesn't go up, I don't care. It's a home. So long as I can service the cost, I don't care what someone with a vested interest tells me how much it's gone up or how much more it would cost to buy the next house up.
Of course, if you're an estate agent, mortgage provider or politician then increases are all super news - increased commission, increased loan values and continued votes.
fido said:
Let's just say my annual compensation was below expectation and the 180/270 degree feedback I provided to management was not that flattering. I may have even used a couple of swear words in front of HR. No worries - a normal day in the City. My in-tray has a few useful leads and I needed a break anyway.
Good stuff - just remember the best two words in the history of HR: gardening leave!I'm not good with all this property stuff or maybe I just use crappy agents or something else. Sold my house a year ago for 443k (not a mark on the wall, perfect condition), very little profit. Agent said the buyers weren't there so I accepted a very low offer.
That same house recently on market for 600k (not looking as good as I left it). I don't even want to know if it sold seriously depressed.
That same house recently on market for 600k (not looking as good as I left it). I don't even want to know if it sold
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