I'm up 50k in 20 months

padington

Linda_D wrote: »

I know you're not joking, nor am I. My house value increased £500 just while I typed this.

Let's celebrate these huge rising house prices :beer:

£3.90p a minute for me.

chewmylegoff

padington wrote: »

He he, no, estate agent.

That's an increase of 11.5 % in one week.

Either that or your estate agent was just wrong last week (assuming they haven't just made up the 390k because valuing it at 350k didnt entice you to immediately put it on the market).

Probably what you said though as estate agents are always competent and honest in my experience.

padington

chewmylegoff wrote: »

Either that or your estate agent was just wrong last week (assuming they haven't just made up the 390k because valuing it at 350k didnt entice you to immediately put it on the market).

Probably what you said though as estate agents are always competent and honest in my experience.

No, it was a case of recent sales that week went way over usual form. There's been a weird avalanche effect happening. I guess it's the HTB subsidy kicking in. I trust my estate agent, he helped me get my place for at a very reasonable price in the first place, he is highly trusted in the local area. He also does't like to over price things. He spent ages explaining why he thought 350 the right price. Then just called a week later saying that the situation has changed fast what with new crazy offers going in with 18 couples fighting over each new house coming on the market. I've mentioned it on a local forum and everyone piled in on agreement that things have gone completely nuts locally.

It's free information, believe it or not as you wish.

Halle71

We just made £40-£50k on a BTL between our offer being accepted and completing tomorrow but I wouldn't boast about it on a forum. Doh.

TBH it is happening all over London but it isn't 'real' money unless you want to move out of town, downsize or use the equity to remortgage and improve your house for your enjoyment.

Based on what our main house is worth we could afford to move to Balham 5 years ago but what good is that?!

grizzly1911

padington wrote: »

I trust my estate agent, he helped me get my place for at a very reasonable price in the first place, he is highly trusted in the local area.

It's free information, believe it or not as you wish.

I find that hard to believe.

chewmylegoff

padington wrote: »

No, it was a case of recent sales that week went way over usual form. There's been a weird avalanche effect happening. I guess it's the HTB subsidy kicking in. I trust my estate agent, he helped me get my place for at a very reasonable price in the first place, he is highly trusted in the local area. He also does't like to over price things. He spent ages explaining why he thought 350 the right price. Then just called a week later saying that the situation has changed fast what with new crazy offers going in with 18 couples fighting over each new house coming on the market. I've mentioned it on a local forum and everyone piled in on agreement that things have gone completely nuts locally.

It's free information, believe it or not as you wish.

Given that you were adamant that everyone should buy gold in mid 2011 I will choose to believe that house prices haven't increased 11% in a week.

padington

Halle71 wrote: »

TBH it is happening all over London but it isn't 'real' money unless you want to move out of town, downsize or use the equity to remortgage and improve your house for your enjoyment.

Or remortgage and renegotiate your terms of interest. :money:

grizzly1911

padington wrote: »

Or remortgage and renegotiate your terms of interest. :money:

But you would still have the same asset and same debt.

Your relative position in the pecking order won't have changed.

MFW_ASAP

grizzly1911 wrote: »

But you would still have the same asset and same debt.

Your relative position in the pecking order won't have changed.

Unless any savings on the interest payments were ploughed back into the mortgage.

Loughton_Monkey

Halle71 wrote: »

....TBH it is happening all over London but it isn't 'real' money unless you want to move out of town, downsize or use the equity to remortgage and improve your house for your enjoyment....

A common misconception.

First of all, it is a seperate debate as to the degree to which there is any 'real' house price inflation. Depends a lot on what deflator you use. RPI? Average Wage? Rental Yield Values? But leaving that aside, let's assume that house prices - over the long run - are increasing in 'real terms'.

If this is the case then it is very much real money. I agree it is not money that is readily spendable by the owner unless downsizing....

But it is a myth that the house disappears into thin air once the owner dies. It gets passed onto someone else. It is no less 'real' value than that Matisse that your grandfather bought for £12.50 at a jumble sale and which you have just had valued at £40 million.

So let's celebrate 'real' house price inflation (if exist) in the same way we would celebrate 'real' inflation of any other asset - such as your pension fund. In the case of the latter, roughly half of the asset owners will very much benefit from the inflation. The other half will get far less value from it.