…….for half what i paid for mine 3 years ago…….bad luck or was mine over priced……….how do i move in the next three years now?

with a large debt probably.

buy the one on the other side

.how do i move in the next three years now?

don’t – you still have the same house, nothing lost

Do you need to move ?

well if you lose half the value then the next one you buy will have come down 50% too.

doesn’t look like they will be going up anytime soon

mcmoonter –

pretty sure that won’t work, the cost of building a house has remained pretty static iirc, it’s the land to put it on that costs

That’s the trick, mcmoonter has it! With his method, you don’t need to buy the land!

hmm, perhaps a little more cunning than i gave him credit for 😆

Are you wanting to move? I would have thought it’s only a problem if you decide to move now, God only knows where the price’s will be in three years from now.

Is it identical to yours or does it need total renovation? Of course house prices have also dropped but there are other factors in play too.

BTW – was that the advertised or sold price??

A few years ago; we paid £150k for our house, and the rebuild cost (from the mortgage company who supplied the buildings insurance) was £42k…

mrmichaelwright – Member
mcmoonter –

pretty sure that won’t work, the cost of building a house has remained pretty static iirc, it’s the land to put it on that costs

Then how about Plan B then?

mrmichaelwright – Member
mcmoonter –
pretty sure that won’t work, the cost of building a house has remained pretty static iirc, it’s the land to put it on that costs
POSTED 5 MINUTES AGO # REPORT-POST

Not entirely true ( unless you build yourself). A builder will charge what they can get away with so charge more when working in what they perceive to be more affluent areas.

I just bought a house.

lets just say the plan was to stay here until our son was 5/6 and he is 3 now……..we paid 87500 and next door has just sold for 45000 which leaves us in about 30k negative equity……ball ache…..think i will get the kitchen done seeing as we will be here a while!

m_f – not entirely correct yerself there 😉

The value of a house is set by the local market.

While the cost of the build will be fairly consistent. Once you allow for a builders profit (as a proportion construction costs) the balance in the equation falls to the land. This is known as the residual – and is the whole reason that “affordable housing” cant work without massive legal constraints on ownership candidates etc.

i.e. Land Value = House Price – Construction cost – (construction cost x 20%)

Default on the mortgage, get evicted and go bankrupt, at least that way you will rub out the 30K.

OK, thats a bit extreme, but maybe thats what your neighbour did?

Default on the mortgage, get evicted and go bankrupt, at least that way you will rub out the 30K.

Seems a tad extreme when you’re happily living in a house you can afford.

Seems a tad extreme

Yeah, well, I did just say that…

Could be the neighbours…. You had nice ones…. then you moved in and the value went down?….

If you move out the value of your house goes up!!!!

Sorry just saying than for kicks… you may be great neighbours… or come to think of it …. never a true word etc??

No I think you must be nice folks…. you ride a bike don’t you?

Yeah, well, I did just say that…

You are so AWESOME that I had to copy.

What Ghetto do you live in for houses to be so cheap? Somewhere crap like Merthyr Tydfil or Hartlepool?

hartlepool is closest….i am in houghton le spring…..good guessing

Why not wait and see what happens in the next 3 years before worrying about it?

That’s quite scary. Where I am (south Bristol) house prices have barely dropped from 3-4 years ago. Very little is going on the market but what does sells quickly for at most 5% less than the top of the market.

Wish I did sell in 07 as now my place is worth 20K less but I am moving and renting out for my place for the next 3 yrs as prices are steadying but should they rise I will be ready to sell.

Demand for property is high especially for rent and rents are rising in my area where not enough properties are available for rent or sale.

I’d like to move, but I’m proabably borderline negative equity. Gonna take a few years to save up money to pay more off the mortgage I reckon. So that the mortgage people will talk to us.

as prices are steadying but should they rise I will be ready to sell.

what if they fall? (some more)

Demand for property is high

then why are all the properties i looked at through the summer still on the market now even though they keep knocking off 10k here and there and moving agents?

Then how about Plan B then?

Not strictly in that order though

A few years ago; we paid £150k for our house, and the rebuild cost (from the mortgage company who supplied the buildings insurance) was £42k…

What – my flat is worth maybe 200 000 for a one bed flat. Rebuild cost is 350 000. Just my share of the renovations are going to be 40 000 a flat.

Are you sure you are not underinsured?

Mr Smith – depends on area. prices are steady and property is selling here

TJ is right! ( ahhhh 😀 )

I bought dead cheap in 2004 not the worst area but you still lock everything up before going to bed! and wtf was that noise!

I repaired my dump/house as it was in a bad state but did the labour myself on a weekends for 8 months of hell/radio/paint/swollen thumbs and the price rose by 60K in 2007 and I had buyers offering etc but instead rented out 3 rooms while I lived there due to work -which has now dried up from Quango cuts in my field! ahhg! no money!

My place is still valued at going rates of 25-35K more than what I paid so I can afford to sell cheap and buy cheap elsewhere -depending on the area. I’m moving and will move alot due to job changes in future with short term contracts and bloody cuts in my field so I might as well rent the bugger out but I will have to use a bloody agent -taking his cut.

I have no mortgage on this property now so I’m in a position to sell but not everyone is and I do feel sorry for them.

My point Mr Smith, is that it depends on your location and how much you paid and some/loads of luck/gamble/analysis. Been lucky on property but out of luck on funding my career thanks to Banking Crisis cuts etc but you just have to get off your backside and fight/work!

Tempted to take out a mortgage in 5 yrs and buy something else and have a portfolio of property as the 16 yr old mums keep sprouting! And have a chain to sell by the time I’m 45 for a million pounds – dreaming…

Josh, Don’t let the price decrease get you down, enjoy life and see what the next 3 years bring.

I was in a similar position in late 90’s, sold a flat for about the same as we paid for it,[moved into a tied house], then watched house prices triple. I still regret not renting it out.

Doesn’t matter what house prices are so long as you are buying and selling in the same market.

But I reckon they still have a long way to go down. Many of the places currently insulated from the current downturn have a high government employment proportion, but now that it going to take a big hit.

Part of the house value slide over the last few years has been hidden in the depreciation of the £.

In a few years this will be regarded as a political coup – our leaders will be saying “houses have never been so affordable, aren’t we wonderful etc…”

My place is still valued at going rates of 25-35K more than what I paid

Valued means nothing though, especially in this climate. One of my mum’s friends got her place valued, 3 different estate agents, lowest was 180k highest 280k.

Valuations are just sophisticated guessing and often meaningless in a turbulent market.

The only truth is the price agreed to between the buyer and seller.

Doesn’t matter what house prices are so long as you are buying and selling in the same market.

You have to have equity though. I don’t care about my house going down in value so much, but I DO care about having bugger all equity, because it limits my ability to move.

What – my flat is worth maybe 200 000 for a one bed flat. Rebuild cost is 350 000. Just my share of the renovations are going to be 40 000 a flat.

Are you sure you are not underinsured?

TJ, as said that was a few years ago.

A detached house is cheaper to rebuild (and insure) than a semi,terrace or flat for the obvious reason that in the event of a disaster the insurance is only paying to rebuild one property – not two,three or (as in a flats’ case, a number).

I’ve always had buildings insurance with my mortgage company; its their valuation and their house 😉 The saving of moving to a cheaper company its worth the bother – we only pay £120 pa.