just got through the paperwork for the house i am trying to buy, in 9 years the price has increased by the grand sum of -£8k.

just made me think, you always get the impression it is a one way bet, you’ll never loose if you buy a house.

Lost 10% despite spending nearly that much on improvements

Ha…. just lost 20k on house bought in 2005……mind you at least its gone!

My house was once valued at 138k. Now, if i ply the estate agent with gin i can get 100k.

You might have noticed the big worldwide financial crash, and the overinflated housing market previous to that.

To be honest house prices should have fallen further, the housing market is still unaffordable.

Thinking about it….if we’d paid the full price it’ll been more like 50k 😕

I’ve made about £100k was more but as houses prices don’t just go up it’s dropped a bit.

Ours has just got back to the price we paid in 2006.

Cheers,
Jamie

and the point of this is?

If you over pay , then you will lose long term.
A house is only worth what you can sell it for … not what you think it is worth

Increasing house prices do not make everyone wealthier…

MSP, well aware of that, but 9 years takes to before the crash, and actually before the prices got silly.

I am buying it as a place to live, security not having to pay rent etc, so it is not as though you loose. As i said just made me think, all the property porn shows and mags etc. extolling the virtues of investing all your money in BTL, houses etc.

and yes houses are still over priced but in whose interest would a correction be? and do those people matter?

sadly the young don’t matter, and they can’t offer directorships with cushy perks.

9 years takes to before the crash, and actually before the prices got silly.

9 years before the crash or 9 years ago?

The crash was in 2008, although it doesn’t seem that long ago.

Equity does not mean you have made any money, unless you sell up or you are a developer. For the average home owner it just means they have a better chance of trading up (from the banks view).

My house was once valued at 138k. Now, if i ply the estate agent with gin i can get 100k.

Ditto but if we could get 100k for our house we’d probably accept the offer.

On the upside we’ve just bought a house for well under 200k that was probably valued at 250k at one point.

I`m glad I bought mine in 2003 all I want to do now is get the ex out as she is 6 months behind with the mortgage which still has my name on it

On the upside we’ve just bought a house for well under 200k that was probably valued at 250k at one point.

Unfortunately that means nothing. You got a house at the price someone was willing pay.

Zoopla will tell you what it has been bought over the years.

As the population constantly increases, house prices are likely to continue to rise in the long term…

Bought my first house in 1990, paid £36k for it, £6k of which was my own hard saved money. I was only 21 at the time. It was the house or a second hand MR2.

Sold the house in 1995 for £30k. Always knew it should have been the MR2…….

I’m sure I wasn’t the only one caught in that crash. Which makes me wonder what kind of **** were running the banks/economy in the 15 years since to not know that there is a fairly predictable cycle to all this and that it would happen again at some point.

As the population constantly increases, house prices are likely to continue to rise in the long term.

Not unless earnings go up.

Sold the house in 1995 for £30k.

Just before the last boom, unlucky.

just made me think, you always get the impression it is a one way bet, you’ll never loose if you buy a house.

No it does not, and never has.
I found out selling a house -£44k after 4 months full time working on it. 🙁

They’ll always be bubbles and those bubbles will always burst, in the long term (30 years +) I’m happy to believe in property being a sound pension option. In the meantime we’re still paying a mortgage at a rate we fixed in 2006 for 8 years. Probably not our best move in hindsight…

Cheers,
Jamie

Msp. You are aware that 13-9 is less than 8 right?

Not too sure how local prices (Bath) have continued to rise at the rate they have, and it seems to have affected all local villages as well. Still utterly unaffordable.

Just before the last boom, unlucky

Oh I made up for it with the next one, and then relocated from Sussex to the Midlands in 2000 before it all went mental again 😆

Just out of curiosity, what areas are the houses that have lost money.

Ours went up and was bought in 2005

Phew!

We’ve just had our house valued at 3 times what we paid for it – in 1992.

I brought my flat at the end of 2007. Haven’t sold it yet, but when I do, I’m expecting to sell it for 33k less than I brought it for. Luckily got promoted at work and have got myself out of negative equity.

Still, epic fail.

Live and learn don’t you 😀

matt_outandabout – Member
-£44k after 4 months full time working on it.

You lost 44 thousand of the queen’s English pounds in 4 months? Bugger me, not one for playing the long game then!

Cheers,
Jamie

I was looking forward to a series of home improvement shows where instead of the usual “investor” fannies doing everything wrong but still making money because of the property bubble, they’d end up living in a bin.

Ewan – Member
… sell it for 33k less than I brought it for.

Loosing £33k on a flat? You could probably buy half a terrace row for that in that there grim north 😆

Cheers,
Jamie

Prices do NOT always go up. But you need to be of a certain age in the UK to remember the early 90’s when we last had a serious price crash (not excusing 2008 but it doesn;t seem to have been that bad).
The Economist reckons prices are still c 30% overvalued against rents and wages and if interest rates weren’t being held silly low then we would have seen more of a correction in recent years.

Personally whilst I like capitalism and free markets more than the alternatives, I’m not sure a market is really the best way to ensure people have somewhere to live securely, given current circumstances… if few people can afford a house then the market’s not working

Drac – Moderator
Zoopla will tell you what it has been bought over the years.

Be careful trusting Zoopla; its normally wrong especially their “valuation” prices. They get their sold data from weird sources (not always LR) and its manipulated frequently. Mouseprice is far better (just create a free account).

The market would work a lot better if we weren’t handing taxpayers money over to private landlords.

If you over pay , then you will lose long term.

Is this true? I’m busy saving for overpayment on the basis that:

A) we can finish our mortgage earlier
B) it lowers the monthly payments, so if either of us are forced to a lower income it makes life more affordable.

Should I be spending my cash on enjoying life instead?

Over pay on yourofferfor the house i presume

1986 Bought £21k
1987 Sold £30k
1988 Bought £30k
1988 Sold £40k
1989 Bought £47.5k – went down, before going back up
1997 Sold £52k
2000 Bought £150k
2012 Sold £250k – had been as high as £290k in mid 2008

Not too bad, on paper – but still see a house as somewhere to live.

In the long run they do, but in the short run they don’t!

and how long the long run is no one knows…
If house prices out run pay rises then it won’t end well. As a few have pointed out affordability isn’t there currently and the prospect of tieing up a huge amount of money in a house with uncertain prospects is putting plenty off.

The other factor is that your house is only worth something when there is someone willing to actually give you money for it.

As a controversial point of view a period of zero growth or falls would probably be a good thing long term to reset the market back to somewhere affordable and sensible. On the other hand with less jobs for life and greater mobility then home ownership might not be the best for some people as you wipe out your cash each time you move with fees & taxes or end up with a chain of rental properties.

just got through the paperwork for the house i am trying to buy, in 9 years the price has increased by the grand sum of -£8k.

And how much would they have made if they’d invested their deposit and rented?