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fishface

Property Prices Increasing In My Area

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Hi guys, thought this might be of interest.

I bought my house in Nov 2003 just before the so called peak. I have just had it valued and the EA agent reckons a reasonable price would mean an increase of 16%. I have not improved the house at all and it still needs a complete refurb as it did before!

Now I realise I haven't actually sold it for that much, and EAs will exaggerate the price to get you on the books. However even if I half that increase to accomodate that fact its still a 8% increase. Also smaller houses on my road have sold for more than mine cost in the last few months. That is real concrete proof that prices in my area have continued to rise post 2004

Doesn't make a huge difference to me as I intend to live here for the next 10+ years. It is an important point for all those doom and gloom merchants here including Dr Bubbles. For some people, if they have listened to the bears for the last 3 years, in my area at least they will find themselves in an even worse situation

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Hi guys, thought this might be of interest.

I bought my house in Nov 2003 just before the so called peak. I have just had it valued and the EA agent reckons a reasonable price would mean an increase of 16%. I have not improved the house at all and it still needs a complete refurb as it did before!

Now I realise I haven't actually sold it for that much, and EAs will exaggerate the price to get you on the books. However even if I half that increase to accomodate that fact its still a 8% increase. Also smaller houses on my road have sold for more than mine cost in the last few months. That is real concrete proof that prices in my area have continued to rise post 2004

Doesn't make a huge difference to me as I intend to live here for the next 10+ years. It is an important point for all those doom and gloom merchants here including Dr Bubbles. For some people, if they have listened to the bears for the last 3 years, in my area at least they will find themselves in an even worse situation

Presumably you also think that the recent huge increases in gas and electricity prices are also good news then, and that OFGEM (office of gas and electricity markets) are doom and gloom merchants when they try to cap these price increases. Would you be equally as pleased if your food bill had gone up 200% in the last 5 years, or if the price of a car had trebled since you bought your last one?

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Presumably you also think that the recent huge increases in gas and electricity prices are also good news then, and that OFGEM (office of gas and electricity markets) are doom and gloom merchants when they try to cap these price increases. Would you be equally as pleased if your food bill had gone up 200% in the last 5 years, or if the price of a car had trebled since you bought your last one?

C'mon jon, you gotta admit that it would be good news about cars going up by 3 times because you would be able to get 3 times the price for your old second hand one :P

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Hi guys, thought this might be of interest.

I bought my house in Nov 2003 just before the so called peak. I have just had it valued and the EA agent reckons a reasonable price would mean an increase of 16%. I have not improved the house at all and it still needs a complete refurb as it did before!

Now I realise I haven't actually sold it for that much, and EAs will exaggerate the price to get you on the books. However even if I half that increase to accomodate that fact its still a 8% increase. Also smaller houses on my road have sold for more than mine cost in the last few months. That is real concrete proof that prices in my area have continued to rise post 2004

Doesn't make a huge difference to me as I intend to live here for the next 10+ years. It is an important point for all those doom and gloom merchants here including Dr Bubbles. For some people, if they have listened to the bears for the last 3 years, in my area at least they will find themselves in an even worse situation

If intent on being horrid, 8% over 2.5 years, less stamp duty, arrangement fees, etc, doesn´t sound that great.

But, I think 2003 was top for the market for some regions, not all. I have friends who have just received an offer ABOVE what the estate agent suggested would be a good asking price - (they advertised above what the EA suggested). They've made a reasonable chunk between them if all goes through as planned. Features of the sale do leave them open to gazundering though.

btp

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I bought my house in Nov 2003 just before the so called peak. I have just had it valued and the EA agent reckons a reasonable price would mean an increase of 16%.

Assuming you sell it for the asking, that is. Combined with what backtoparents says, you might not do as well out of this as you think.

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Hi guys, thought this might be of interest.

I bought my house in Nov 2003 just before the so called peak. I have just had it valued and the EA agent reckons a reasonable price would mean an increase of 16%. I have not improved the house at all and it still needs a complete refurb as it did before!

An EA reckons eh? Did you see that programme of dodgy EAs? Some EAs regularly overvalue to get the commission and then play mind games with the vendor to bring down their unrealistic EA inspired expectations.

So if you got an offer 1 penny under would you accept it? If you got an offer 10% under would you accept it? If the house was on the market for 9 months and you got an offer 16% under would you accept it?

Come back when the money is in the bag mate. In fact, come back when someone has signed on the dotted line and we can look it up on nethouseprices.

Now I realise I haven't actually sold it for that much, and EAs will exaggerate the price to get you on the books. However even if I half that increase to accomodate that fact its still a 8% increase. Also smaller houses on my road have sold for more than mine cost in the last few months. That is real concrete proof that prices in my area have continued to rise post 2004

Have you verified this on a houseprice search engine?

Doesn't make a huge difference to me as I intend to live here for the next 10+ years. It is an important point for all those doom and gloom merchants here including Dr Bubbles. For some people, if they have listened to the bears for the last 3 years, in my area at least they will find themselves in an even worse situation

There are a lot of lucky people out there who seemed to have signed up to HPC on the 5th/6th January. Anyway, how is it gloomy to suggest that one shouldn't spend all of one available resources on a roof at the expense of food?

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8% increase? 16% increase? Over two years and more?

If you'd stuck it into just about any other asset class you'd have massively outperformed that. FTSE 100 tracker? Shares in general? Metals? If 8%, you'd have even done better with cash.

Really annoys me, people bemoaning the supposedly bad decision of STRers. They could have made a bad decision if they stuck the proceeds in a bank account. Since 2003 property has been a massive underperformer compared with most other assets.

Edited by Scipio_Africanus

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Are you for real....

No wonder this countries in such a state with zombies like you walking the earth.

1/ You havent sold it

2/ You've no intention of selling it

3/ You have to buy another

It's an absolutely pointless conversation that I cannot even be bothe.............................

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I agree that while it may not be particularly interesting or original, I suppose fishface is simply saying that HPC presents a world in which house prices have been crashing since 2001 and where shovel loads of doom and gloom are still in to come; he’s simply questioning this “reality”, and pointing out that it differs from that experienced by many people in the real world outside of HPC. By all accounts the general level of prices in the UK is still going up, so he’s perhaps questioning why this has to be so vehemently denied on what seems like purely ideological grounds. He’s just pointing towards some denial, blinkered, over-spun, and “head in the sand” type positions. A crash of sorts is obviously on the cards, but not right now! :P;)

Edited by spline

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It’s a bit like the beer advert, Holstein Pils I think, sloooo down, take your time, eventually all the debt turns to doom. :)

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Whats wrong with you people? Why so aggressive?

Elizabeth, did you actually read my post before you 'did one'? I said I readily recognise the sharp practices of EAs which you seem to want to educate me in. Yes I have confirmed the land registry sale price. I also state in my post I know I haven't actually sold it with the cash in the bank for that amount, as I don't intend to sell, yet you tell me to come back when I have the money in the bank. You have paid little attention to the actual nature of the post. I think you have issues. :rolleyes:

For those that say the return vs other investments is poor;

1) I made it very clear in my post that this is not just some investment. I intend to live here for 10+ years and I enjoy the property everyday, it is my home. If its gone up a little then thats just a bonus.

2) Its easy to say other asset classes will outperform my home but that makes little sense as you can't sleep in your stocks portfolio. Also as my house is worth way more than most of you will put into stocks etc my 8% return is alot more money than your 25% return on a £50k investment. My return is not taxed at 20-40%.

3) For those going on about fuel bills, go chop some wood, or move somewhere warmer :rolleyes:

My point was not that I have made a shed load of money by speculating on property. My point was just to inform that there are parts of the UK where at the very least property prices have not dropped post 2004, and may have gone up a few quid.

People here just seem to want to read posts that support their own views. Thats sad :rolleyes:

8% increase? 16% increase? Over two years and more?

If you'd stuck it into just about any other asset class you'd have massively outperformed that. FTSE 100 tracker? Shares in general? Metals? If 8%, you'd have even done better with cash.

Tell me where you can get 8% return on cash then? :blink::blink:

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fishface,

In the over two years since November 2003 cash would have made you more than 8%.

As for sleeping in share certificates, the dividends of some shares could pay for your rent. For example, if you'd bought Lloyds TSB at the end of 2003 you'd have been looking at something like a 40% capital gain AND, I believe, an annual dividend of well over 5%. If you'd bought several hundred thousand pounds worth of LLOY that would have been enough for the rent. After CGT you'd still have a 25% gain. And if you ever wanted to to sell your LLOY, and it's in a nominee online account, you don't have to call an estate agent, and have buyers traipsing round your property. You just log onto the internet and press a couple of buttons. It would certainly be a lot quickly than writing this post!

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fishface,

In the over two years since November 2003 cash would have made you more than 8%.

As for sleeping in share certificates, the dividends of some shares could pay for your rent. For example, if you'd bought Lloyds TSB at the end of 2003 you'd have been looking at something like a 40% capital gain AND, I believe, an annual dividend of well over 5%. If you'd bought several hundred thousand pounds worth of LLOY that would have been enough for the rent. After CGT you'd still have a 25% gain. And if you ever wanted to to sell your LLOY, and it's in a nominee online account, you don't have to call an estate agent, and have buyers traipsing round your property. You just log onto the internet and press a couple of buttons. It would certainly be a lot quickly than writing this post!

SA, come on mate its not that straight forward. It is not sensible to put all your cash into one asset class let alone one share. If it is why didn't you borrow £250k of the bank in 2003 and put it into LLOY? Or maybe you did ;)

Anyway, as I said thats not the point of my post. I'm just saying prices have not come down in all of the UK since 2004. Thats all, plain and simple

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fishface,

To my mind, that's THE big advantage of property over shares. Banks will lend you money to buy a property and allow you to use that property as security for its own purchase. In 2003 I would not have been able to go to a bank and ask for £250K's worth of LLOY, with a £50K deposit, and pay that off with a 5% interest mortgage - a great shame, because I would have been able to use the dividend to pay off the mortage, and been able to walk away with a 40% profit after a couple of years.

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fishface,

In 2003 I would not have been able to go to a bank and ask for £250K's worth of LLOY, with a £50K deposit, and pay that off with a 5% interest mortgage - a great shame, because I would have been able to use the dividend to pay off the mortage, and been able to walk away with a 40% profit after a couple of years.

You could easily have borrowed that money against the shares, just not at 5% - my clients do it all the time when they borrow to buy companies..... - in 2003 closer to 7.5%.....

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WA, I'll ignore your comment as I'm sure you are no oil painting yourself :lol:

Rachman, I'm not saying you cannot borrow money to buy equity, just that most would not due to risk.

FF

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I sold my flat in December 2003, the buyer put it back on the market in January 2006 with a price increase of about 18%. Simpular flats in the estate were also on the market for about the same amount.

But guess what...

Nobody bought any of them and all bar one have been taken off the market (including my old place).

Edited by laughing_goat

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I bet you're luvin' it, luvin' it, luvin' it! :lol:

You should have gone back and offered them 50% less than what you sold it to them for. Just for a larf mind...

God no, when I sold it I was happier to get rid of it than I was about the price, it was a tiny studio flat, the area was a s**thole, you couldn't pay me to live there again.

I'm not going to pretend I didn't make any money from it (I did put in a new kitchen, windows and bathroom though), but when I sold it I priced it reasonably (for the market) and sold it within a week.

I was a bit shocked when I first saw it back on the market though. Part of me was a bit worried that some mug might actually pay the asking price.

Edited by laughing_goat

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  • 301 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% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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