Psychology Of Home Sellers

[19 year mortgage 8itch]

The rent quadrupled in the 13 years between 1997 and 2010 ? Must be a rather spcific location you are discussing.

I doubt for 99.999999999999% of the UK the rent has even doubled during the same period.

And the value only went up by 60% '97-'10 too

If that were the case nationally (60% increase in property prices since 1997). Would we all be here?

Edited November 21, 2010 by daiking

[ccc]

And the value only went up by 60% '97-'10 too

If that were the case nationally (60% increase in property prices since 1997). Would we all be here?

Well noticed. Wouldn't the average in the UK over that same period be something like 200% ?

This Cakehead is having a laugh and just making stuff up. Unless they have any stats/links they can provide to prove their point.

[cakehead]

I used the example because it's one I'm familiar with. The house was valued at a quarter of a mill, over valued IMO, in the late 80s peak. By the time we rented in '91 it would have been almost impossible to achieve that price, so we'll say £170k tops for the sake of argument. The house would have peaked out, given local examples (I no longer live in the region) in 2007 around £460k and looking at examples other people gave on here this week, £11-1300pcm rent is consistent with a house valued at £350,00, give or take. Therefore the current rent in unsurprising, though the percentage house value is less than average.

The house was in an attractive rural hamlet in which properties almost never came onto the open market, most being the property of local landowners. Such properties tended to rise disproportionately in the 80s boom and took years for confidence to recover, perhaps only matching the '88 theoretical asking price by say, 2002. It's yet another example of the error of talking about the housing market when in fact Britain is and was, a mass of micro markets which conform to trends unevenly.

edit: to emphasise the incongruity of the market, in late 88 I bought a property at the peak for 20k and sold it in the '91 trough for just over 30k, with the addition of some modest council grant work. The last house I owned went up x5 between '99 and 2010, again with some modest improvements. A house bought in 97 I sold for exactly the same price two years later, a deficit if you factor in EA and other costs. OTOH a property bought when a change of job looked immanent - and subsequently fell through - increased from 54k to 80k in a month with the addition of a good clean and a new kitchen. Such is the madness of housing.

Edited November 21, 2010 by cakehead