Good news for anyone buying ...

Really2

nearlynew wrote: »

I have just received an offer of full asking price for my house after accepting an offer of 10% less.

I'm wondering whether to gazump the first buyer.

Talking up the housing market now are we.

Wookster

Really2 wrote: »

Sorry I disagree there gen, you can have appreciating assets and property, buildings and land can be classed as one of those.
It is not only land.

(PS I am a qualified accountant, you do Appreciation & Depreciation and what kind off assets that covers in year 2, there are not many but I can assure you property is in there)

Well you should know then that buildings have a finite life. As a result, they depreciate.

IveSeenTheLight wrote: »

From this link http://www.nationwide.co.uk/hpi/downloads/UK_house_price_since_1952.xls

House Price Q4 1952 = £1891
House Price Q4 1977 = £13,150
Resultant HPI increase of 695.5%


House Price Q2 1998 = £34,174
House Price Q2 2010 = £168,719
Resultant HPI increase of 493.7%



That may be true, however the debt remains reduces and doesn't increase with inflation. It actually decreases due to capital repayment.
This means that throughout the period of a mortgage (25 years), the debt becomes easier to manage due to inflation (wage)

You have forgotten the most basic rule of them all:

Past Performance is No Guarantee of Future Results.

new_home_owner_3

nearlynew wrote: »

I have just received an offer of full asking price for my house after accepting an offer of 10% less.

I'm wondering whether to gazump the first buyer.

how ironic, is that another pig flying pass the the window......................?????????????

or is that the pig from the paddock???:D

Really2

Wookster wrote: »

Well you should know then that buildings have a finite life. As a result, they depreciate.

http://en.wikipedia.org/wiki/Appreciation

In accounting, appreciation of an asset is an increase in its value. In this sense it is the reverse of depreciation, which measures the fall in value of assets over their normal life-time. Generally, the term is reserved for property or, more specifically, land and buildings.

They only depreciate when past economic repair, but even then that is after years and years of appreciation, you cant depreciate before that point if it is increasing in value.
You would still own the land to rebuild on after that point .Would you care to guess if that was worth more than building price was 100-200 years ago.
So from 1800s or 1900s to 2000 would you say the average property or building has appreciated or depreciated? It would be fairly hard to do 200 years of depreciation if it was worth more would it not?

IveSeenTheLight

Wookster wrote: »

You have forgotten the most basic rule of them all:

Past Performance is No Guarantee of Future Results.

Absolutely did not.
If you read the post, I was providing answers to a question that considered that the last 25 years was a historical blip and would not be comparable to the 1950 - 1975 era.
Indeed the earlier period was worse than the last 25 years.