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16 Years and made no money - Devon


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A friend was showing me a property someone he knows has been trying to sell now for almost a year, this is a house they bought 16 years ago, a house which at the time they thought they had bought cheap because it was the builders own house in a development of 8 barn conversions.   The house has close to 1/2 acre of gardens, manicured over the years and well kept, a few changes in the house fair bit of money spent (new boiler, bathroom, kitchen etc).   It is in a very sought after area, 6 miles outside of Exeter in lovely East Devon.

Anyway they expected a price tag of close to a million but estate agent told them to expect less and now after close to a year it looks like they are going to have to drop the price to more or less "break even".  They bought the house in 2004 for £740k so with fees, stamp duty etc that is close to £780k.  With say £60k spent over the past 16 years that is £840k and even that is now looking like it is unachievable especially in the current climate.

Just goes to show that some people really haven't made anything on property, if anything this place is going to go for a loss and that is during apparently the largest property boom in history.  I imagine anyone who has bought in the last 10 years will be feeling this in the coming years

https://www.rightmove.co.uk/property-for-sale/property-86547890.html

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On 05/07/2020 at 07:52, Einstein71 said:

A friend was showing me a property someone he knows has been trying to sell now for almost a year, this is a house they bought 16 years ago, a house which at the time they thought they had bought cheap because it was the builders own house in a development of 8 barn conversions.   The house has close to 1/2 acre of gardens, manicured over the years and well kept, a few changes in the house fair bit of money spent (new boiler, bathroom, kitchen etc).   It is in a very sought after area, 6 miles outside of Exeter in lovely East Devon.

Anyway they expected a price tag of close to a million but estate agent told them to expect less and now after close to a year it looks like they are going to have to drop the price to more or less "break even".  They bought the house in 2004 for £740k so with fees, stamp duty etc that is close to £780k.  With say £60k spent over the past 16 years that is £840k and even that is now looking like it is unachievable especially in the current climate.

Just goes to show that some people really haven't made anything on property, if anything this place is going to go for a loss and that is during apparently the largest property boom in history.  I imagine anyone who has bought in the last 10 years will be feeling this in the coming years

https://www.rightmove.co.uk/property-for-sale/property-86547890.html

I don't know what inflation is over the period but factor in an average of 3% per year. Then their losses will look even worse.

Compound interest is a b***h over 16 years.

 

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Didn't they just massively overpay in 2004?

I remember that as a time when the absolutely ludicrous prices hadn't spread so far from London and nice properties like this looked really cheap to those used to prices in the south east.

This certainly wouldn't have looked cheap to anyone in 2004, you could have bought a detached house of a similar size in Guildford for less money.

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12 hours ago, worried1 said:

Didn't they just massively overpay in 2004?

I remember that as a time when the absolutely ludicrous prices hadn't spread so far from London and nice properties like this looked really cheap to those used to prices in the south east.

This certainly wouldn't have looked cheap to anyone in 2004, you could have bought a detached house of a similar size in Guildford for less money.

My thoughts too. They are suffering from having the "best house on the street". Far better to have the worst - and get dragged up in value.   Looking at the neighbors, they are not even half the size, and so I could see the prices of those should be doubled to get a fair comparison. I think owners of #1 and #5 are also heading for trouble.  

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  • 1 month later...
On 05/07/2020 at 07:52, Einstein71 said:

A friend was showing me a property someone he knows has been trying to sell now for almost a year, this is a house they bought 16 years ago, a house which at the time they thought they had bought cheap because it was the builders own house in a development of 8 barn conversions.   The house has close to 1/2 acre of gardens, manicured over the years and well kept, a few changes in the house fair bit of money spent (new boiler, bathroom, kitchen etc).   It is in a very sought after area, 6 miles outside of Exeter in lovely East Devon.

Anyway they expected a price tag of close to a million but estate agent told them to expect less and now after close to a year it looks like they are going to have to drop the price to more or less "break even".  They bought the house in 2004 for £740k so with fees, stamp duty etc that is close to £780k.  With say £60k spent over the past 16 years that is £840k and even that is now looking like it is unachievable especially in the current climate.

Just goes to show that some people really haven't made anything on property, if anything this place is going to go for a loss and that is during apparently the largest property boom in history.  I imagine anyone who has bought in the last 10 years will be feeling this in the coming years

https://www.rightmove.co.uk/property-for-sale/property-86547890.html

What do they expect?

I Know SW is slightly different, London retirers and all that.

But the basics still stand - if you want houses to go up in value then local wages need to go up.

Escaping London/London equity is getting rarer and rarer as not most people living in London last 20 years have been renting.

OAPs retiring toe the sea side have collapsed as most have found its cheaper - and better- to stay where they are, downsize and go to Spain/Portugal offpeak. Cheaper than staying the UK.

Prices near me have been stuck at 2004 prices. LR data barely shows a rise. And sales have collapsed too, making any sort of exit pretty hard.

Chuck in finance costs and fees and few people make money from housing.

 

 

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  • 417 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
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      • Even
      • up 2.5%
      • up 5%



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