The Quant's House Price Diary

thequant

There's a lot of renters on this forum who are missing out on the joy & excitement of the current house price rises. So as a public service I'm going to keep a diary of my own HPI, so they can share in my success.


I've been tracking my own property price and believe it to be worth £415k , the estimate was verified when the house next door sold a few weeks ago for the same price.


So as a base figure March will be £415K


Hope you renters enjoy the ride with me.


Choo-choo all aboard

eelsoup

Sounds like an enthralling prospect.

Did you used to collect train numbers or learn entire telephone directories as a child.... or perhaps you were a bus enthusiast?

Perhaps you could also include imputed rent too.

For added excitement, could you also include estimates of how many additional
flies are attracted to your garden each time a cat deposits excrement in one of your flower beds

the_flying_pig

the best thing to do is to work out a daily increase.

to keep the maths simple, let's assume your house is really worth £365k rather than this other price, and that it's inflating by 10% a year, i.e. £36.5k a year, i.e.* £100 per day.

next time you have a hard or unpleasant day, remind yourself that the gods of house price inflation paid you £100 that day just for being you. as they do every day, weekends included :beer:.



* - arithmetic approximation only.

michaels

How many years until you plan to downsize and thus benefit from the HPI?

Given that house price growth is probably not linear surely looking at short term returns on a long term investment is a bit pointless? Do you look at every swing in the value of your pension fund and consider it an immediate loss or gain?

MrRee_2

If next door sold a few weeks ago how do you know what it actually sold for? It's too early to appear on the Land Registry as yet.

Now, I am one for buying ...... but the poor renters shouldn't really have their noses rubbed in it.

They know they should be buying, for whatever reason they cannot do that, it's heartbreaking for them to be reminded that houses are increasing in value faster than they can earn .............. you could have some suicides on your hands!

Masomnia

I think this is all a trick. If you write a thrilling journal that keeps the renters hooked, they won't go out and better themselves, and instead vicariously experience the joys of ownership through your writing.

Cunning, very cunning.

thequant

michaels wrote: »

How many years until you plan to downsize and thus benefit from the HPI?

Given that house price growth is probably not linear surely looking at short term returns on a long term investment is a bit pointless? Do you look at every swing in the value of your pension fund and consider it an immediate loss or gain?

The plan is to call the top of the market. We are at the beginning of another boom, it will be sustained for quite a while. But no doubt a bust will come at some point. The clever bit is working out when this will happen.

thequant

MrRee wrote: »

If next door sold a few weeks ago how do you know what it actually sold for? It's too early to appear on the Land Registry as yet.

Now, I am one for buying ...... but the poor renters shouldn't really have their noses rubbed in it.

They know they should be buying, for whatever reason they cannot do that, it's heartbreaking for them to be reminded that houses are increasing in value faster than they can earn .............. you could have some suicides on your hands!

Next door have told me, they were quite chuffed that they had two offers for asking price and they had the power to decide who was the lucky couple.


I'm hoping that by sharing my happiness in this thread, it will alleviate some of the misery of the renters here and hopefully prevent a few suicides.

Percy1983

My house appears to be worth a little more than I paid.

When does the happiness kick in? I can't feel it.

mayonnaise

Percy1983 wrote: »

My house appears to be worth a little more than I paid.

When does the happiness kick in? I can't feel it.

When it will be worth considerably more, putting you under 60% LTV for example and you come up for re-mortgage and you can ditch your 5% fix for a 2.49% fix?
Not sure if happiness will kick in at that point, but you'll surely notice the extra cash in your pocket (although Graham might dispute that).

Physics

thequant wrote: »

The plan is to call the top of the market.

Good plan! I always find with my financial planning, it's best to make sure you call the top of the market correctly. The next best thing is to call the bottom of the market - you can do very well by catching the falling knife.

I honestly don't know why more people don't take this approach to their finances.