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markyh

My Old House Just Sold For £7K+ Loss Since 2007

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My old house I bought in 1996 for £55k and sold in 2007 for £194k to STR has just sold (STC) for £187k. A £7k loss. Also double glazing, new boiler and other improvements have been added that must have cost at least £10k.

So this has made a £17k+ loss over 6 years!

http://www.christopherpallet.com/default.html

Lambourne Avenue , HP21 9NB

It's weird seeing your old house with different decor than you had! New Kitchen (2006) was my handywork (wickes design, my fitting). Kitchen diner onlt had single door into garden, now french doors so some brickwork must have been modded. Dividing Garden fence has been replaced. All Windows and front door replaced with UPVC double galzing. New combi boiler (new owner told me the old one died 14 months after the sale). Bathroom has had some extra work after the basic white suite and white tile paint replced a full green 80's suite in 2005.

Cam't see how she could have spent less than £10k.

Kind of sad is STC already, must be because of HTB2 because this wasn't on the market last month. Would have liked to book a viewing to be nosy for old time sake. lol.

So the bubble is nowhere near 2007 prices here yet!

M

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... sold in 2007 for £194k to STR has just sold (STC) for £187k. A £7k loss. Also double glazing, new boiler and other improvements have been added that must have cost at least £10k.

So this has made a £17k+ loss over 6 years!

Don't forget to factor inflation, which was officially measured ~20% since 2007. Using this graph (Nationwide average house prices adjusted for inflation) you can approximate that 2007 194k in today's cash is worth about 235k. Add transaction costs of moving in and out with stamp duty (2x 5k?) and the argument that you never loose with 'bricks and mortar' starts to look visibly false.

-17 -10 -40 = -67k ouch!

Minus 6 years of banker's rent (if mortgaged) instead of Landlord rent.

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Don't forget to factor inflation, which was officially measured ~20% since 2007. Using this graph (Nationwide average house prices adjusted for inflation) you can approximate that 2007 194k in today's cash is worth about 235k. Add transaction costs of moving in and out with stamp duty (2x 5k?) and the argument that you never loose with 'bricks and mortar' starts to look visibly false.

-17 -10 -40 = -67k ouch!

Minus 6 years of banker's rent (if mortgaged) instead of Landlord rent.

you need to focus on the wage inflation, not the consumables inflation

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you need to focus on the wage inflation, not the consumables inflation

Pay scales take care of this for 40% of workers

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It's a similar story down here in Devon. I have friends who took a £60k hit, another who spent tens of thousands on a renovation, house now on market for 2006 price with no interest.

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The house we sold at the end of 2007 was back on the market about a couple of years ago with an asking price that was nearly 5.5% lower than our selling price. I assumed that it must've been taken off the market (although that wasn't based on anything other than not noticing it in the local paper), but I've just checked and it's still for sale with the same asking price.

It's now listed as being chain free, which strikes me as a little odd as a married couple with children bought it from us, so... where must they be living now?

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Similar story here. Sold 3 bed semi in Jan 2005 for £190k (agent thought we should have pushed for more). Sales since on same street have been Mar 2007 6 bed semi £180k, Aug 2007 3 bed semi £190k, Jun 2008 8 bed (!) semi £206.5k, Apr 2012 3 bed semi £147k. I think I got out pretty near the top. B)

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My old house I bought in 1996 for £55k and sold in 2007 for £194k to STR has just sold (STC) for £187k. A £7k loss. Also double glazing, new boiler and other improvements have been added that must have cost at least £10k.

So this has made a £17k+ loss over 6 years!

http://www.christoph...om/default.html

Lambourne Avenue , HP21 9NB

It's weird seeing your old house with different decor than you had! New Kitchen (2006) was my handywork (wickes design, my fitting). Kitchen diner onlt had single door into garden, now french doors so some brickwork must have been modded. Dividing Garden fence has been replaced. All Windows and front door replaced with UPVC double galzing. New combi boiler (new owner told me the old one died 14 months after the sale). Bathroom has had some extra work after the basic white suite and white tile paint replced a full green 80's suite in 2005.

Cam't see how she could have spent less than £10k.

Kind of sad is STC already, must be because of HTB2 because this wasn't on the market last month. Would have liked to book a viewing to be nosy for old time sake. lol.

So the bubble is nowhere near 2007 prices here yet!

M

Do you work for the Bank of England?

There has been a housing bubble since 2003, maybe earlier.

Showing that things have fallen a little since 2007 doesn't really mean much.

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Do you work for the Bank of England?

There has been a housing bubble since 2003, maybe earlier.

Showing that things have fallen a little since 2007 doesn't really mean much.

I was being taught about the housing bubble in GCSE economics a few years before that. Sadly, my economics teacher was rather more economically aware than anyone in the BoE or Treasury.

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Worth pointing out we are talking Home Counties. Shows the disconnect between the perception that house prices are close to highs and the reality that once you adjust for inflation and home improvements houses have been as an investment disaster these last six years. As a homeowner myself I can admit that,shame that most conveniently forget what they have spent on ''improvements'' (often equivalent to rent in itself) and what they could have earned on the capital elsewhere.

Edited by crashmonitor

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Worth pointing out we are talking Home Counties. Shows the disconnect between the perception that house prices are close to highs and the reality that once you adjust for inflation and home improvements houses have been as an investment disaster these last six years. As a homeowner myself I can admit that,shame that most conveniently forget what they have spent on ''improvements'' (often equivalent to rent in itself) and what they could have earned on the capital elsewhere.

One of my biggest worries about "owning" or owning again is all the costs involved, and the potential tax target that you become when they know you are definitely attached to the address by a bankers leash, it will have to be a substantial correction before I will even consider it now, buying that is.

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Do you work for the Bank of England?

There has been a housing bubble since 2003, maybe earlier.

Showing that things have fallen a little since 2007 doesn't really mean much.

Here you go Feb 2003.....

The Bank of England has surprised City analysts by cutting interest rates by one quarter of a percentage point.

After 14 months on hold, rates have been cut to 3.75%, taking borrowing costs to their lowest level since 1955.

The move surprised City analysts, who had thought that the Bank would maintain rates at 4% to keep a lid on the housing market and general inflation.

House prices last month were 24.9% higher than in January 2002, Halifax, the UK's biggest mortgage lender, said on Wednesday.

....

"This is one of the biggest gambles any central banks has done - cutting rates when house price inflation is close to 30% and inflation is already above target," said John Butler, UK economist at HSBC.

"It is true to say [the Bank is] playing with fire."

Ross Walker, UK economist at Royal Bank of Scotland, said: "I can see nothing in the data that suggests the UK consumer needs further interest rate easing."

http://news.bbc.co.uk/1/hi/business/2732645.stm

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The house we sold at the end of 2007 was back on the market about a couple of years ago with an asking price that was nearly 5.5% lower than our selling price. I assumed that it must've been taken off the market (although that wasn't based on anything other than not noticing it in the local paper), but I've just checked and it's still for sale with the same asking price.

It's now listed as being chain free, which strikes me as a little odd as a married couple with children bought it from us, so... where must they be living now?

They were probably talked into renting it out ( by the EA ) until the market picks up next year or it has been repossessed

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Worth pointing out we are talking Home Counties. Shows the disconnect between the perception that house prices are close to highs and the reality that once you adjust for inflation and home improvements houses have been as an investment disaster these last six years. As a homeowner myself I can admit that,shame that most conveniently forget what they have spent on ''improvements'' (often equivalent to rent in itself) and what they could have earned on the capital elsewhere.

Yep this is in the county town of Bucks ona 1/2 decent estate, well established, 99% private owned, decent sized houses 1980's built. under 1 hour train commute to London, my ex would I lived with here until 1999 worked in London and did the daily commute.

Mind you in 2008 this house dropped to £160k, still 3 x the price paid in 1996 though!

Luckily I only STR until the falsh crash in late 2008 / early 2009 and bought a new build 5 bed accross town for £230k, that sold for £300k+ in 2006/7. Now thanks to HTB2 three of my new house style that have been unsold since the last 18 months have all sold for between £275-£285K. this month!

M

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They were probably talked into renting it out ( by the EA ) until the market picks up next year or it has been repossessed

Ah, yes. For some reason that hadn't occurred to me. 'No chain' doesn't necessarily mean no one at home--there could be tenants in it.

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To see the disconnect in London. I (we really) sold my two bed flat in Islington in 2007 for 500. It was sold again in 2009 for 500. Just checked zoopla and it sold again this summer for 675.

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1382617918[/url]' post='909417415']

To see the disconnect in London. I (we really) sold my two bed flat in Islington in 2007 for 500. It was sold again in 2009 for 500. Just checked zoopla and it sold again this summer for 675.

+infinite

London is on another level! ph34r.gif..............laugh.gif

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Pay scales take care of this for 40% of workers

Public sector pay declined by 1.6% in the year to August 2013, according to the ONS. Still -0.8% discounting the public sector banks. Grauniad

Pay is particularly weak in the public sector, the details of the ONS data reveal, declining by 1.6% in the year to August. Much of the fall came in the state-backed banks, where bonuses were down, and the make-up of the workforce has shifted towards lower-paid staff.

But even excluding financial services, public sector workers saw their pay decrease by 0.8% in the year to August: the weakest since records began in 2001, against a background of above-target inflation.

Don't let the truth get in the way of a good whinge though.

Edited by Quicken

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you need to focus on the wage inflation, not the consumables inflation

Agreed, if we were comparing affordability with leverage but I think for comparisons of paper to paper valuations across time, then we have to factor for inflation (by currency devaluation or consumer price rises). Even though I experience low/no wage inflation (rising below the official inflation rate) doesn't mean I can ignore the effects of inflation on the currency measure, although the BoE hopes that many will.

edit: missed a key word.

Edited by DarkHorseWaits-NoMore

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