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I'm Out ...

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Bought my first (small) house in a nice part of Warwickshire for £80k in early 2000. Watched property prices go mental for seven years whilst I paid off the mortgage & lambasted Brown to anyone who'd listen (I remember a program on the BBC in 2006 that described him as 'the greatest post-war CoE - I nearly put my foot through the TV).

Decided the madness couldn't stretch any further by any reasonable measure in early 2007 so put the place up for sale - I felt uncomfortable about the economy so wanted to liquidate my assets & be prepared just in case. Sold To Rent that October (the peak month!) for £162k - which is still the highest price paid for a house on that street. Currently similar houses are priced around £140k. Around the same time I discovered this site whilst googling for similar views to those I held. I've enjoyed many hours laughing & learning here over the last 50 months ...

Rented for four years & the interest on my savings just covered my rent over that period, largely thanks to the 2 Year 6.75% Northern Crock Bond I held in 2008-2009. When I was selling my house though there was a row of ten new build three bedroom houses I really liked being built in the area - this was the only viewing I did but the price was ridiculous (£360k) which solidified my resolution to rent. Over the intervening four years just two of the houses sold, one to an investment company which left it standing empty, the other for the asking price to someone who probably wants to jump off something very high these days.

This Summer I broke - fed up of renting & watching my savings deflate ... & I really wanted a home of my own again. I viewed those houses again, the asking price had dropped to £300k, I offered £250k cash, they said no. Last month the asking price dropped to £275k, my 'phone rang, they would accept £260k, this time I said no - I simply wasn't going to pay 3% Stamp Duty to HM Treasury after what they'd done to my savings. But they soon accepted my original offer & I completed last weekend.

I'm happy enough - I now have a lovely new home for a price I find acceptable (although when I remember that I was brought up in a council house I do feel a touch guilty when I say "quarter of a million pounds"). So why have I told you all this? I guess because I think it's a sort of success story - just about - which some may be interested in, it's at least an interesting story in terms of the topic of HPC.co.uk.

But I also owe it to some of the doom-mongers here to allow them a chance to tell me why I'm crazy & should have offered £100k or waited another four years or emigrated or ... :)

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Well done - my only comment is to consider taking out a decent fixed rate mortgage (but only if you can get hold of one) and placing some of the equity elsewhere. The mortgage can act as a bit of a hedge against inflation in the long run and the equity withdawal will allow you to diversify.

Too late, mate - although I did indeed consider that ... but in the end I decided to just pay cash & get on with my life with nothing to think about house-wise :)

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well done

houses are not extremely overpriced everywhere, there are parts of the country where you can still buy houses for roughly build cost or sub build cost

for example i lived in blackburn for a few months and you can get good big houses for prices you couldnt build them for

as an example


You couldnt build that for the asking price.

IMO a good measure of value is how much it would cost you to build the thing,

So the above is good value as i suspect a similar house your looking at over £150k.

However the same house in a crap area of london is probably about 400k so £250k is fluff

In a good area perhaps £1m for the same pile of bricks.

If we truely get a crash, London surely has to fall the hardest.

But i dont see a nominal crash nor london falling hard unless they actually allow builders/individuals to build homes (ie make PP easier)

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Everyone has been far too nice to you. That's not the hpc spirit.

1. You must be crying in your milk that you locked your money in a bank, rather than putting it in gold, which has tripled.

2. You've given the government a very easy way to tax you for ever increasing amounts, as this depression deepens. You can no longer disappear.

3. You won't be able to sell in a hurry. Or move jobs. This explains the sly smile your employer gave when you told him.

4. Your wife will take it off you when you divorce.

5. You've got no insulation worth a damn.

6. Your sewage pipes are 100 years old and about to break.

7. You haven't even looked at the roof. The joke is, neither did the surveyor.

8. The search for a simple life, security if you like, is an illusion. It means your tax rates are about to rise, because the puppet master knows and he takes it away. (I'd put a scary symbol in here, if I knew how).

That's more like a traditional TFH hpc response.

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If you own it outright/will own it outright. Nice 1 mate. Hopefully a worry off the mind, and you can concentrate on the other things which are important to you!

And when you pass, I hope it makes a nice home for someone else :)

(A home is a home, and life is life, a home is for living in)

I'm neither HPC/HPI, I just want to see homes fit for all humans. When each man has a roof over his head, men (and women) can do better things!

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Well done. Enjoy the house which you have, effectively, paid 170k+ a bit of inconvenience for. Much better than the poor sap who got hit for 360k.

The guy who bought for 360k is probably looking at 15-20 years discretionary income lost relative to you. Life is for living. By doing a bit of thinking in 2007 you've just given yourself 20 extra years time to enjoy yourself, instead of turning over every penny and slogging your guts out. Enjoy those years.

Edited by Tiger Woods?
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then you'll need to be using the word "dog shit" at least 3 or 4 times. Any chance you'd let me spectate? :D

I will report back here when it is happening. Not likely for a good while yet. Will need to practice my Gekko sayings in the meantime.

Nice :) I found that looking completely unimpressed during my viewings threw the saleswoman a bit ;)

Now that is another good plan. Keep them coming. All useful.

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Well done Keef. Your situation is quite similar to mine. I bought in 99' for £50k and STR'd in 2006 for £126k, and expect to buy in 2012. In the meantime my investments/interest have more than covered the rent and inconvenience of renting. I have to say I have been very lucky with Landlords so far.

I too see the 250k at the barrier - for me to consider anything above that would have to be something very special and very reduced.

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Cheers fellas, I'm off to bed in my new pad :)

Yes, big congratulations and hope it turns out to be all you want for.

Now....how about changing that avatar to a nice fluffy puppy to reflect your new found peace? :P

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Ok mate, here's what you should do.

1) wait till the prices go up( they always do you know)

2) as soon as it grows by 50k and the you have 300 k of equity you have worked hard to earn it, remember that.

3) mew it all. You're then rich

4) blow 200k on cars and holidays and tasteful trinkets.

5) put the other 100k onto 10 deposits on 10 100k flats and then rent them out

6) you are now a millionaire

What could go wrong?

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