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  • FIRST POST
    • obay
    • By obay 17th Mar 17, 6:15 AM
    • 322Posts
    • 191Thanks
    obay
    does house value rise?
    • #1
    • 17th Mar 17, 6:15 AM
    does house value rise? 17th Mar 17 at 6:15 AM
    we brought our house for £178k back in november, and we're currently sitting at a £148k mortgage, my wife doesn't like the house much for obvious reasons, we've had to do a lot of stuff we didn't want to do.

    the house had a broken roof(water leaking in the bedroom), 25 year old boiler, damp and mould issues, no insulation, dodgy electric that got condemned a few months ago, and genuinely not a great property to be in.

    we've now repaired and replaced everything in this house and brought it up to a good standard, IE we have gone around, removed all damp issues and mould replaced boiler, etc.

    There is a retail park opening up about 3 minutes down the road, the other end of town, the estate agent reckoned that within the next year or so, the house pricing will go up to over £250k...

    the house features the biggest garden on the street, new windows and doors also (new 'k-glass' windows)

    do you think we've retained value or has it reduced? do you think the house will be good for FTB? as that what I was hoping for because we got 'doped' into buying it as FTB.... and we are regretting this purchase now.
    1/12/16 - £152,599.00
Page 1
    • Mrs36
    • By Mrs36 17th Mar 17, 6:36 AM
    • 110 Posts
    • 203 Thanks
    Mrs36
    • #2
    • 17th Mar 17, 6:36 AM
    • #2
    • 17th Mar 17, 6:36 AM
    There is no way for us to know without a crystal ball, given the information in your post. Without knowing the area it is tricky to say but I would say that it is unlikely that your property has increased by over 70k in less than a year. Estate Agents have a tendency to tell you what you want to hear. Everything you have mentioned seems like general home maintenance, rather than adding value.

    Look at the actual sold prices (not asking prices) for your area, and go from that on the true value of similar houses.
    • MobileSaver
    • By MobileSaver 17th Mar 17, 6:50 AM
    • 1,186 Posts
    • 1,617 Thanks
    MobileSaver
    • #3
    • 17th Mar 17, 6:50 AM
    • #3
    • 17th Mar 17, 6:50 AM
    I don't quite understand why it is "obvious" your wife doesn't like the house much since it is presumably now (with all the improvements you have made) quite a nice house to live in?

    As Mrs36 says, what have other houses in your area in the same (now) good condition sold for recently?
    Respect to 3 of the greatest actors of all time; amazing people who are totally believable as the characters they play & almost single-handedly make the shows they starred in:

    Peter Dinklage as Tyrion Lannister in Game of Thrones
    Daniel J. Travanti as Frank Furillo in Hill Street Blues
    Claire Danes as Carrie Mathison in Homeland
    • obay
    • By obay 17th Mar 17, 6:57 AM
    • 322 Posts
    • 191 Thanks
    obay
    • #4
    • 17th Mar 17, 6:57 AM
    • #4
    • 17th Mar 17, 6:57 AM
    A lot of house pricing at the moment in our area are selling for £210kish. So I think the potential is there, my wife doesn't like the house because of all the improvements we've had to do in a short space of time! So I think she is looking for an exit when the 2 years fix is over with our current mortgage provider..

    I think the estate agent is right, with the potential of around 3500 new jobs to the area, I think it could be worth 250?
    1/12/16 - £152,599.00
    • Mrs36
    • By Mrs36 17th Mar 17, 7:00 AM
    • 110 Posts
    • 203 Thanks
    Mrs36
    • #5
    • 17th Mar 17, 7:00 AM
    • #5
    • 17th Mar 17, 7:00 AM
    I think a £40k rise because of a retail park sounds unlikely, if properties are currently selling for £210.
    • MobileSaver
    • By MobileSaver 17th Mar 17, 7:03 AM
    • 1,186 Posts
    • 1,617 Thanks
    MobileSaver
    • #6
    • 17th Mar 17, 7:03 AM
    • #6
    • 17th Mar 17, 7:03 AM
    A lot of house pricing at the moment in our area are selling for £210kish. ... I think it could be worth 250?
    Originally posted by obay
    House prices are based on a huge number of variables and obviously local changes (such as the retail park) can make a dramatic difference but an increase of 20% in a year sounds rather optimistic!
    Respect to 3 of the greatest actors of all time; amazing people who are totally believable as the characters they play & almost single-handedly make the shows they starred in:

    Peter Dinklage as Tyrion Lannister in Game of Thrones
    Daniel J. Travanti as Frank Furillo in Hill Street Blues
    Claire Danes as Carrie Mathison in Homeland
    • Davesnave
    • By Davesnave 17th Mar 17, 7:18 AM
    • 23,105 Posts
    • 88,433 Thanks
    Davesnave
    • #7
    • 17th Mar 17, 7:18 AM
    • #7
    • 17th Mar 17, 7:18 AM
    Is it the house or your wife that's high-maintenance?

    Most people have a 'load of stuff they don't want to do' when they buy a FTB property, unless it's a new-build shoe box. They do it, often over a much longer period than you took, and then plan their next move for a time when it makes the best sense. I even know two couples who didn't move again, although one extended their property to fit a growing family.

    What do you want to do and is the house adequate for you requirements for the next few years? Moving house every few years can give people the impression that they are going up in the world, when in fact they're incurring heavy fees and taxes.

    Sitting tight for a while may be the better option, but it's hard to tell without knowing all the circumstances.
    'A society grows great when old men plant trees whose shade they'll never sit in.'
    • JP1978
    • By JP1978 17th Mar 17, 7:22 AM
    • 285 Posts
    • 220 Thanks
    JP1978
    • #8
    • 17th Mar 17, 7:22 AM
    • #8
    • 17th Mar 17, 7:22 AM
    Get a new Mrs, will be cheaper than changing house :-)
    • AnotherJoe
    • By AnotherJoe 17th Mar 17, 7:32 AM
    • 7,227 Posts
    • 7,737 Thanks
    AnotherJoe
    • #9
    • 17th Mar 17, 7:32 AM
    • #9
    • 17th Mar 17, 7:32 AM
    Let's say that you were buying your right house now from someone else that had improved it in the same way you have.
    So your wife presumably would like it it as had no problems and was In a good state.
    So, as of this morning, regard yourselves as having bought the house from a very nice couple last night and you didn't even need to move house or pack and unpack.

    Alternatively you could sell this house that's just as you like it, and buy one from a different couple you don't know with how many unknown issues (even new builds can have significant issues just read the threads in here). So with that attitude you'd be constantly moving from houses a nice couple had spent a lot of time and energy on, into ones that needed fixing.

    As it happens I know a couple like that. They've never really stayed long enough in any house they bought to enjoyed but lived Ina perpetual DIY state. Never really lived in one long enough to actually enjoy their work. Made some money but never really settled.
    • glasgowdan
    • By glasgowdan 17th Mar 17, 7:43 AM
    • 2,393 Posts
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    glasgowdan
    So what happens when you buy another house and have to spend months doing improvements again?

    And how can anyone say they don't like something because of the improvements they've made? It doesn't make sense. We don't know if your house value has gone up or down.
    • Davesnave
    • By Davesnave 17th Mar 17, 8:09 AM
    • 23,105 Posts
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    Davesnave
    And how can anyone say they don't like something because of the improvements they've made? .
    Originally posted by glasgowdan
    It can happen, especially with people who are new to building/decorating, who find themselves having to make choices rapidly, 'on the hoof.'

    The dust settles and they think, "Why the hell did we choose/do that?"

    Many of us have been there, but most of us get over it and thus learn to plan things carefully, doing research first.
    'A society grows great when old men plant trees whose shade they'll never sit in.'
    • obay
    • By obay 17th Mar 17, 8:14 AM
    • 322 Posts
    • 191 Thanks
    obay
    Thanks for the replies, that's the issue, it's because we moved into a world of pain, this is what I am telling her, that this house is absolutely perfect now as we've removed a ton of the issues that we once had, I know the speed we've gone, it's stupidly quick, I told her we should slow down and enjoy it, everything to make woman happy? right?
    1/12/16 - £152,599.00
    • DonnySaver
    • By DonnySaver 17th Mar 17, 8:18 AM
    • 409 Posts
    • 169 Thanks
    DonnySaver
    It IS possible. Our house went up in value by around £60k within the first year we bought it 1999/2000. We always say that if we'd waited another 6 months we'd never have been able to afford it.
    • Norman Castle
    • By Norman Castle 17th Mar 17, 8:23 AM
    • 6,154 Posts
    • 4,932 Thanks
    Norman Castle

    the house had a broken roof(water leaking in the bedroom), 25 year old boiler, damp and mould issues, no insulation, dodgy electric that got condemned a few months ago, and genuinely not a great property to be in.

    we've now repaired and replaced everything in this house and brought it up to a good standard, IE we have gone around, removed all damp issues and mould replaced boiler, etc.
    Originally posted by obay
    Its likely you paid a lower price for the house because of the improvements needed. Did the estate agent give a valuation of the improved house?
    Don't harass a hippie. You'll get bad karma.
    • moneyistooshorttomention
    • By moneyistooshorttomention 17th Mar 17, 8:24 AM
    • 13,422 Posts
    • 36,575 Thanks
    moneyistooshorttomention
    I can understand why your wife resents the fact that so much effort (and obviously money) has had to be spent on the house.

    Been there/done that - twice now.

    I'm in a 1970s house now and really struggle to "get my head round" why a house could have been so neglected/had so little time and money spent on it - considering it had several previous owners (not just one).

    But "I put my head down" and got on with doing about 50 years worth of maintenance work at once + putting right things that were old-fashioned already when the house was built.

    Having done all that - I want me to be the one that gets the benefit of all my hard work and loadsa money spent. So it makes sense to me that you & your wife give it a couple of years "for the dust to settle" and the resentment at having had to do so much work other people should have done but didnt. There's no point in speculating as to why they didn't do it (ie fulfil their responsibilities is the way I think of it - coming from a home-owning family). It might have been meanness/laziness/illness/lack of money/who knows? - but you have to try and forget the resentment you've had to go through all that and give the house a chance to see if you can "settle" in it once it's up to standard at last and not just move on. I guess it's akin to childbirth - the memory fades into the background of what you've been put through after a while.

    After all - a high proportion of our housing stock needs a lot of work on it for one or more of the above reasons to do with previous owners. You could be going "from the frying pan (now cleaned and gleaming) into the fire" and have to go through the whole thing again if you move - and pile on even more resentment at having to do other peoples work for them.

    Even a noticeable proportion of brand new houses have problems - due to the way they're being "thrown up" at a rate of knots and many builders arent taking the time/trouble to make sure they are even actually finished before selling them.
    If there's "4 tendencies" type of people (Gretchen Rubin) = yep....Questioner type here
    - Meets an expectation only if they believe it's justified and resists anything arbitrary or ineffective
    • Davesnave
    • By Davesnave 17th Mar 17, 8:30 AM
    • 23,105 Posts
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    Davesnave
    Money, you don't resent buying a house that needs improvement; you buy it at a reduced price and bring it up to the standard you require.

    If you do that, what the previous owner did or didn't do is no concern of yours.

    What can be galling is removing perfectly serviceable things in the course of improvements, but again, apportioning blame is unhelpful.
    Last edited by Davesnave; 17-03-2017 at 8:32 AM.
    'A society grows great when old men plant trees whose shade they'll never sit in.'
    • juniordoc
    • By juniordoc 17th Mar 17, 8:34 AM
    • 152 Posts
    • 102 Thanks
    juniordoc
    Yeah 40k extra for having a retail park nearby is ridiculous, you might be lucky to get 5 or 7k more.
    The next 18 months is hardly gonna be a big winner for house prices rising....Remember a little thing called Brexit?!
    • always_sunny
    • By always_sunny 17th Mar 17, 8:46 AM
    • 3,453 Posts
    • 3,679 Thanks
    always_sunny
    It depends where it is.
    Blackpool or London?

    Do you have a link of what sold for £210k?
    Expat with an EU passport
    • moneyistooshorttomention
    • By moneyistooshorttomention 17th Mar 17, 8:47 AM
    • 13,422 Posts
    • 36,575 Thanks
    moneyistooshorttomention
    Money, you don't resent buying a house that needs improvement; you buy it at a reduced price and bring it up to the standard you require.

    If you do that, what the previous owner did or didn't do is no concern of yours.

    What can be galling is removing perfectly serviceable things in the course of improvements, but again, apportioning blame is unhelpful.
    Originally posted by Davesnave
    Maybe that depends on whether the money spent could be recovered. Often it cant. I would need to charge £55,000 more than I paid for the house to recover money spent - and that's not taking any account of inflation/house price inflation or anything for my work. I could only charge around £20,000 more for the house than I paid for it = a loss of £35,000 plus house price inflation plus my work done for nothing.

    That's the thing about quite a few houses - one can't recover all the money put into doing work on them. Hence the resentment there would be of doing work for free and spending more money than one could ever recover that applies to many houses.

    Maybe OP is in a similar situation - rather than a "make a profit from having done that work" situation? Many people are...
    If there's "4 tendencies" type of people (Gretchen Rubin) = yep....Questioner type here
    - Meets an expectation only if they believe it's justified and resists anything arbitrary or ineffective
    • Mr.Generous
    • By Mr.Generous 17th Mar 17, 9:01 AM
    • 1,639 Posts
    • 2,441 Thanks
    Mr.Generous
    Retail parks don't provide lots of highly paid jobs. Managers commute and try and live somewhere they could travel to a number of shops belonging to the firm without moving house. I worked as a retail manager for 28 years and I have never come across anyone who moved house to be near a particular store. People moved to an area, say a transfer from Liverpool to Yorkshire, but they don't buy a house close to a particular store. They do what everyone else does and find a place they want to live in. Maybe customers will spend an extra £40k to be near their favourite shop?

    Could it be at all possible that the estate agent said something to help you decide to buy so he got his sale and commission? Surely not, EA's are always completely truthful and never say anything untrue. The agent should have purchased a couple of buy to lets and covered his costs for 12 months then sold for a nice profit with his expert knowledge of future house prices.
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