I Could've Cried ... And You Will Too

PasturesNew

OK, so it's my favourite bit of the month - when the land registry latest prices are updated to the free house prices websites online. So I always like to spend 20 minutes or so skimming through particular addresses, areas, etc of vague nosey interest.

Then I spotted a price that made me cry.

Could you afford to buy a house for £12k? Could most people, if they put their mind to it, afford to buy a house for £12k?

What about £130k? Can you afford to buy at £130k? Starting from nothing... ? Could you?

One house I saw sold for £12k in 2000 and just resold at £130k

It was mental wasn't it.

IveSeenTheLight

PasturesNew wrote: »

One house I saw sold for £12k in 2000 and just resold at £130k

It was mental wasn't it.

I have a friend who bought a house for only £5k around 2000.
It needed about £60k worth of work done to it, completely gutting out everything and starting from scratch.
It's worth a lot more now, I can tell you.

Do you know the condition of the house when it was bought for £12k in 2000 or when it was re-sold for £130k?
I fear it would not have been in that great a condition in 2000 if sold for only £12k

The_White_Horse

and the person who bought it was probably paid 15k in 2000 and 20k now, rather than 159K!

another failure by the lefty failure machine.

a slight increase in interest rates in 2002/3 would have cooled it all to a reasonable level, but the lefties wanted this. smoke and mirrors.

Emy1501

What I find strang with LR these days is how few properties complete these days. In the 2 postcodes I look its 20% of the 2007 figures.

On the price front there is a property which was marketed at 525K selling sold price 400K Ouch.

LizEstelle

The_White_Horse wrote: »

and the person who bought it was probably paid 15k in 2000 and 20k now, rather than 159K!

another failure by the lefty failure machine.

a slight increase in interest rates in 2002/3 would have cooled it all to a reasonable level, but the lefties wanted this. smoke and mirrors.

... which, I would guess, would have made about 90%+ of us 'lefties'.

Nice to know the ranting righties are in such a small minority. Sort of restores one's faith.

kennyboy66_2

The_White_Horse wrote: »

and the person who bought it was probably paid 15k in 2000 and 20k now, rather than 159K!

another failure by the lefty failure machine.

a slight increase in interest rates in 2002/3 would have cooled it all to a reasonable level, but the lefties wanted this. smoke and mirrors.

Thats it !

This is the first house price bubble the UK has ever had.

Genuis.

PasturesNew

IveSeenTheLight wrote: »

I have a friend who bought a house for only £5k around 2000.
It needed about £60k worth of work done to it, completely gutting out everything and starting from scratch.
It's worth a lot more now, I can tell you.

Do you know the condition of the house when it was bought for £12k in 2000 or when it was re-sold for £130k?
I fear it would not have been in that great a condition in 2000 if sold for only £12k

I don't know it specifically ... on the other hand I've seen perfectly good houses bought at auction for (say) £100k, had £20k spent on them and put back up for sale at (say) £150-160k.... when there wasn't actually anything wrong with the first house except it wasn't posh enough for some people.

I'm sure anybody who lives in an area where houses were up to £25k in 2000 could verify that certain houses weren't wrecks to start with.

zzzLazyDaisy

I bought a flat in Feb 2003 for £67k and sold it the following year for £99k. It was only two years old when I bought it, and I did nothing to it. I was just lucky to be in an area that was on the edge of where people really wanted to live, but couldn;t afford to, so it suddenly became desirable.

I moved to another area where house prices had traditionally been depressed, but I don't know whether the value of this house has gone up or down, as it is my 'forever' home, and I'm not selling!

phil_b_2

Without knowing any specifics about the house when it was bought at 12k and when it sold at 130k, it's impossible to know whether the price difference is reasonable or not. Someone might have got a bargain at 130k!

Cleaver

PasturesNew wrote: »

OK, so it's my favourite bit of the month - when the land registry latest prices are updated to the free house prices websites online.

This line makes me want to cry slightly more than the bit about the 12k house.

Mr.Brown_4

Instead of crying perhaps you could try laughing. Remember the 'heroes' of yesteryear - the BTL empire builders? In a decade where 12k becomes 130k there have been some very high profile failures - Bovey, InsideTRack, Wilsons (soon), etc., plus a small army of amateur 'investors'. How on earth could people fail to make any real money with that sort of bubble HPI? Because they thought it would go on for ever.

When the gearing reverse happens - as in Iceland, Dubai, Spain, Ireland, the US it can be very very painful. I'd rather miss out on the 'bargain' at 12k, than be holding the 130k and waiting for the inevitable.