Just curious -what percentage increase is this?

Prudent

http://www-m.aspc.co.uk/cgi-bin/public/LiveProperty/264571?ID=MDFNBFAI#picture

(hope the link works)

I just noticed this house for sale. It is up for offers over £460,000 (in a parcel of two lots). It is in Aberdeenshire and usually 'offers over' means at least 20%. Although this may very well have changed in the current market. I don't live in the area now.

I spent part of my childhood in this house. My parents bought in 1978 for £12,000. Sadly they sold it and have moved many times since.

I am not very good at maths. I am trying to work out the percantage increase in value since 1978. Can anyone help?

ffacoffipawb

Prudent wrote: »

http://www-m.aspc.co.uk/cgi-bin/public/LiveProperty/264571?ID=MDFNBFAI#picture

(hope the link works)

I just noticed this house for sale. It is up for offers over £460,000 (in a parcel of two lots). It is in Aberdeenshire and usually 'offers over' means at least 20%. Although this may very well have changed in the current market. I don't live in the area now.

I spent part of my childhood in this house. My parents bought in 1978 for £12,000. Sadly they sold it and have moved many times since.

I am not very good at maths. I am trying to work out the percantage increase in value since 1978. Can anyone help?

Assuming it goes for £460,000 then that's a 12.9% annual return over 30 years.

If it goes for approx 20% more, i.e. £550,000, then that's a 13.6% annual return.

SquatNow

Prudent wrote: »

http://www-m.aspc.co.uk/cgi-bin/public/LiveProperty/264571?ID=MDFNBFAI#picture

(hope the link works)

I just noticed this house for sale. It is up for offers over £460,000 (in a parcel of two lots). It is in Aberdeenshire and usually 'offers over' means at least 20%. Although this may very well have changed in the current market. I don't live in the area now.

I spent part of my childhood in this house. My parents bought in 1978 for £12,000. Sadly they sold it and have moved many times since.

I am not very good at maths. I am trying to work out the percantage increase in value since 1978. Can anyone help?

460/12 = 38.3r.

38.3 times it's original value.

Of course £460k isn't real money.... it's imaginary... an aspiration. They *WANT* £460k for the house.

The thing with houses, is the price is set by a very small number of transaction. What... 1 or 2% of houses are sold each year? But all house values rise.

The kicker is the government values the countries wealth based upon the sale price of 1 or 2% of the assets. So they say we are all rich because a few people bought houses for silly money. Doesn't matter until people start borrowing against this imagined wealth and trying to live their lives as if it was real money.

Prudent

SquatNow wrote: »

460/12 = 38.3r.

38.3 times it's original value.

Of course £460k isn't real money.... it's imaginary... an aspiration. They *WANT* £460k for the house.

I agree its about aspiration. I am just interested because I have a lot of memories of the house. The best bit of the house, as a child, was actually the stream at the back. This is on a public right of way anyway, so I guess the best bit is free

Jennifer_Jane

It's a lovely house, I hope you have happy memories. It looks like a great place to have grown up in.

Jen
x

Prudent

Thank you Jen, it was lovely

PasturesNew

You should go look round it. If I am ever within 100 miles of somewhere that holds memories that's for sale, I'd do a fake viewing.

Prudent

I did actually go back last year - the first time since we moved out.

I was up in the area visiting old friends and passed near the house. I went back to have a look. I was just looking at the outside when the owners pulled up. They very kindly asked me in for a cup of tea and to look around. There were a lot of memories. The aga in the kitchen is the same one, as were a few other items and mostly the house is very similar.

neverdespairgirl

Prudent wrote: »

I spent part of my childhood in this house. My parents bought in 1978 for £12,000. Sadly they sold it and have moved many times since.

I am not very good at maths. I am trying to work out the percantage increase in value since 1978. Can anyone help?

In 2006, £12,000.00 from 1978 was worth:

£47,569.82 using the retail price index

£48,319.65 using the GDP deflator

£77,243.86 using the average earnings

£86,200.29 using the per capita GDP

£93,189.48 using the share of GDP

Prudent

Goodness it has really outstripped other methods of growth. No wonder its is so hard to buy a house in comparison to the past. Thank you for all the information

RHemmings

Prudent wrote: »

Goodness it has really outstripped other methods of growth. No wonder its is so hard to buy a house in comparison to the past. Thank you for all the information

Yes. But it's entirely possible that it may be quite hard to buy a house now compared to the future.