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    • Ray Singh-Blue
    • By Ray Singh-Blue 13th Sep 17, 9:00 AM
    • 341Posts
    • 443Thanks
    Ray Singh-Blue
    Tell me about the economics behind your house choices
    • #1
    • 13th Sep 17, 9:00 AM
    Tell me about the economics behind your house choices 13th Sep 17 at 9:00 AM
    I'm interested in the economics that lay behind your choices about where to live.

    Here's my fairly simple story.

    I bought my first house in 1998 for £67K. It was a two bedroom terraced house in the Midlands. I had no savings. Parents gave me £10K to use as a deposit. Until that point I had rented a flat.

    Four years later, married with a toddler and a baby, sold it for £130K and moved to a modern house on a housing estate which cost £190K. We borrowed £90K.

    Two years after that work took us nearer to London. Houses were more expensive, but our earnings had risen. We bought an ex-council house for £340K with a £180K mortgage. It needed a bit of improvement. A dusty few years,

    By 2007 the kids had started school, my career was going well, and my wife was back at work full time. We sold our house for £440K and bought a flashy house on a commuter estate some way out for £750K. We borrowed as much as the bank would lend us, £460K.

    The house was really nice and for a few months we had to pinch ourselves that it was ours. But the commute was lousy. We came to regret the move, and decided that we would much prefer to live more simply, and closer to our work and schools.

    Looking back, I reckon it was a mistake to borrow so much. We had benefited from 10 years of house price growth, but instead of "banking" it, chose to put ourselves in a position where money was tight, even with good wages. But by then, the housing market had taken a downturn, and it became clear we would not be able to sell our house for the price we had paid. One of our neighbours sold a house like ours, taking a £170K haircut. That's when I got into visiting websites like this, and started trying to educate myself financially.

    Eventually in 2013 we sold our house for almost exactly what we have paid for it 6 years earlier. We moved back into a terraced house, in a much more central location. London being London, it cost us nearly £800K and we needed to borrow £370K.

    We are happy with our house at present, and have a loose dream that in a few years when the kids have left home we might sell up, and build something modest, light and modern in the South West of England with a view over water. But who knows if that will ever happen, you can't plan too far ahead.

    One of the things that interests me is how economic changes over the decades affect the choices people make. I was born in the 1970s, and my journey has been very different from that of my parents. My own kids, born in the "naughties", are likely going to have to come at things from a different angle again.

    Anyway, that's my story & I'd love to hear yours.

    Cheers Ray
Page 1
    • Mutton Geoff
    • By Mutton Geoff 13th Sep 17, 9:57 AM
    • 947 Posts
    • 994 Thanks
    Mutton Geoff
    • #2
    • 13th Sep 17, 9:57 AM
    • #2
    • 13th Sep 17, 9:57 AM
    1980 Studio flat, London. Bought £19,950 sold 1981 £22k
    1981 3 bed semi, London suburbs. Bought £33k sold 1986 £85k
    1986 3 bed detached, Home Counties. Bought £95k sold 1998 £210k
    1998 4 bed detached, Home Counties. Bought £285k sold 2015 £775k
    2012 4 bed detached, Cotswolds. Bought £730k sold 2016 £1.73m (spent 500k rebuilding)
    2016 5 bed detached, Home Counties. Bought £1.3m

    The property market has treated me well over a long period of time. My first purchase was nearly 4x my London salary then and may parents couldn't believe what I was paying for a shoebox (equivalent of their house in Essex).

    First step was via a GLC (Greater London Council) help to buy scheme, where for £50 they would persuade Nationwide to lend me the money when several building societies already said no. Deposit funded by a "car loan" I took out with Barclays the week before. 100% borrowed money and something credit checks would prevent you from getting away with these days! Sold it via a £20 ad in the Evening Standard since, from an early age, I have been generally averse to estate agents.
    Compensations/Refunds from Banks & Institutions - £4,165 | Stooz Profits - £7,636 | Quidco - £3,963

    All with a big thank you to Martin and from Mutton Geoff!
    • ProDave
    • By ProDave 13th Sep 17, 10:02 AM
    • 401 Posts
    • 479 Thanks
    • #3
    • 13th Sep 17, 10:02 AM
    • #3
    • 13th Sep 17, 10:02 AM
    Bought first house (1 bed terraced starter home) in 1986 Moved 3 years later (after the crash) to a VERY tired 2 bed 1930's ex council semi. I bought that house for it's location in a nice Oxfordshire village, anything else I could afford was a horrible little box crammed into an estate of horrible little boxes.

    Spent 13 years in that house. We modernised it, extended it nearly doubling it's size. By then the mortgage was tiny, but to make the next step to what I really wanted, a detached house was simply beyond me. And I was getting tired of my commute to work on roads that just continued to get more and more congested.

    So 14 years ago we sold up in the south, and bought a building plot in the Highlands, and built our first house, 5 bedroom detached, 4 bathrooms, double garage, and ran that as a B&B this meant at age 40, decent house at last, no mortgage, money left over (we bought buy to let with that) much better lifestyle, no more traffic jams.

    We earn much less now but with no mortgage are much better off.

    We retired from the hospitality business and are now building our second house, a more modest 3 bedroom detached just 2 doors away from the first one. This will be our retirement house.

    I would never wish to go back to the south again.
    • tori.k
    • By tori.k 13th Sep 17, 10:08 AM
    • 2,895 Posts
    • 6,511 Thanks
    • #4
    • 13th Sep 17, 10:08 AM
    • #4
    • 13th Sep 17, 10:08 AM
    Purchased first home 2 up 2 down in 97 for what felt a massive sum of 26k up North with my first husband came away with 2k in 99 when the relationship ended, house two was a small 3 bed ex local athority house in Cornwall in 99 for 52k had a lot of help from my parents with this one, house is now a rental I remarried and moved into rented in 2012 we needed a bigger home and was out priced by the market by the mid 2000, so we travelled and made the most of life until we needed to get serious about retirement so in the process of buying house number 3 a 2 bed for an eye watering 136k now the kids have left home. A house to me is just somewhere to sleep and keep stuff, I find the whole process boring and so tedious if I could afford it I would happily carry on renting but don't have the retirement income that would support it.
    Debit to Credit (stage 1) 3652.34 completed 15/10/16
    Debit to Credit (stage 2) 6299.09 completed 25/06/17
    Last Castle 150,000/ 25300
    • Ithaca
    • By Ithaca 13th Sep 17, 12:12 PM
    • 219 Posts
    • 232 Thanks
    • #5
    • 13th Sep 17, 12:12 PM
    • #5
    • 13th Sep 17, 12:12 PM
    First house bought for £170k in 1997 2007 with £20k gifted deposit and household income of £32k (age 28, no children at that point) - small two-bed terrace.

    Second (and hopefully final!) house bought for £470k in 2015 with household income of £97k (age 37, two children and one on the way) - four-bed detached in need of some TLC and extension in the same town.

    We took on quite a large mortgage but interest rates are low (and will remain so for a while), prices in our town will keep going up for the foreseeable future, and both our salaries are still to peak so we can increase mortgage payments at a later date if needed.
    Last edited by Ithaca; 13-09-2017 at 2:42 PM. Reason: I cannot count.
    • hazyjo
    • By hazyjo 13th Sep 17, 12:57 PM
    • 9,796 Posts
    • 12,417 Thanks
    • #6
    • 13th Sep 17, 12:57 PM
    • #6
    • 13th Sep 17, 12:57 PM
    - Bought first flat, 2 beds, in Blackheath for £65k in 1991. Separated from fiance. Sold for £58,500 in 1995. (RECESSION PERIOD)

    - Bought second flat, 2 beds, in Greenwich for £40k in 1996. Moved to buy house with husband. Sold for £65k in 1998. (MASSIVE BOOM)

    - Bought house in Eltham, 3 bed terrace, for £95k in 1998. Divorced. Sold for £141,500 in 2001.

    - Bought house in Eltham, 2 bed semi, for £120k in 2001. Sold for £199k in 2006.

    - Bought house in Highams Park, 2 bed terrace, for £227,500 in 2006. Moved to buy house with husband. Sold for £228,500 in 2011. (RECESSION PERIOD)

    - Bought house in Brentwood, 4 bed end of terrace, for £435k in 2011. Divorced. Sold for £460k in 2013.

    - Bought house, 3 bed terrace, in Chingford for £274k in 2013. Selling this year for £515k. (MASSIVE BOOM - ALTHOUGH NOW SLOWING)

    - Buying house, 3 bed semi, in Leigh-on-Sea for £430k (nearly mortgage free). (BOOM AREA, GETTING PRICIER EVERY DAY)

    What have I learnt? Don't get married LOL!
    2017 wins: Opera tickets; film preview; lipstick; Ideal Home Show tickets + afternoon tea & bottle of Champagne; 2 cases of NKD; notebook; bath rack; books; film Premiere; Broadchurch DVDs; lipbalms; hamper (food/wine/Echo Dot/Jo Malone goodies); Avon lippies; cowhide rug; Windsor luxury break, foundation; Flybe flight
    • TrickyDicky101
    • By TrickyDicky101 13th Sep 17, 1:14 PM
    • 2,784 Posts
    • 1,805 Thanks
    • #7
    • 13th Sep 17, 1:14 PM
    • #7
    • 13th Sep 17, 1:14 PM
    First house bought for £170k in 1997 with £20k gifted deposit and household income of £32k (age 28, no children at that point) - small two-bed terrace.

    Second (and hopefully final!) house bought for £470k in 2015 with household income of £97k (age 37, two children and one on the way) - four-bed detached in need of some TLC and extension in the same town.
    Originally posted by Ithaca
    I wish I'd only aged 9 years between 1997 and 2015
    • Ithaca
    • By Ithaca 13th Sep 17, 2:48 PM
    • 219 Posts
    • 232 Thanks
    • #8
    • 13th Sep 17, 2:48 PM
    • #8
    • 13th Sep 17, 2:48 PM
    I wish I'd only aged 9 years between 1997 and 2015
    Originally posted by TrickyDicky101
    Hah, yes good spot. I still refuse to believe that 1997 was not about 10 years ago...
    • NeilCr
    • By NeilCr 13th Sep 17, 3:07 PM
    • 1,068 Posts
    • 1,174 Thanks
    • #9
    • 13th Sep 17, 3:07 PM
    • #9
    • 13th Sep 17, 3:07 PM
    Bought my first (and only) house with my ex in 1975 for £12,000 (£250 gifted by my parents). When we separated in 2001 she sold the house for £195k( don't ask!)

    Started again on my own. Bought a new build flat in Lewisham for £150k. Loved that flat - easy to get in and out of London and near Blackheath and Greenwich. Had a £95k interest only mortgage

    In 2007 decided to move down to the coast. Sold the flat for £245k - neatly paying off the mortgage

    Bought a two bedroom house in Kent for £177k. It had never been lived in - built 2005/2006. Love this house too - not likely to move unless the knees go. Recently been valued at between £195k - £205k

    A lot of stuff on here about not buying new builds because they lose value quickly. All I can say is that I've done okay out of mine financially
    Last edited by NeilCr; 13-09-2017 at 3:54 PM.
    • chelseablue
    • By chelseablue 13th Sep 17, 4:21 PM
    • 2,285 Posts
    • 2,811 Thanks
    Bought a 2 bed flat in Berkshire for £156,000 in 2010 (on my own)

    Sold the flat in 2016 for £235,000 and bought a 3 bed semi with my partner for £400,000

    Still in Berkshire but a different town.

    Its been valued now at £430,000. Mortgage outstanding £221,000 so nearly own half of it
    Mortgage starting balance 26.02.16 £231,294
    Mortgage after Year 1 £225,078
    • cjdavies
    • By cjdavies 13th Sep 17, 4:35 PM
    • 2,779 Posts
    • 2,785 Thanks
    Bought mine for £68,500 in 2007, still here, current value guessing the same.
    • worried jim
    • By worried jim 13th Sep 17, 4:46 PM
    • 8,692 Posts
    • 13,265 Thanks
    worried jim
    £50k in 1999 for a three bed semi in Leicester. Never lived in it and rented it out on a 100% mortgage on the advice of a friend who had just become a financial advisor. Made about £60pm profit after fees.

    Sold it in 2003 for £100k and bought a 2 bed flat in Brighton for £121k and still live in it. Has now doubled in value with less than 11 years to go on the mortgage.

    Will sell up in 12 years and move back to Leicester and will buy 3/4 bedroom house and a two bed apartment in Turkey and that's me done at 55. Good to have a plan.
    "Only two things are infinite-the universe and human stupidity, and I'm not so sure about the universe"
    Albert Einstein
    • lisyloo
    • By lisyloo 13th Sep 17, 4:48 PM
    • 21,261 Posts
    • 10,207 Thanks
    Bought 3-bed 1991 for £70K
    Sold 2003 for £129K, bought 5-bed for £400K probably worth £550K now

    saved enough to pay it off in 2012, but very low interest rate (currently 0.74%) so currently stoozing £166K for a profit :-)

    Due to pay off mortgage in about 1 year.
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