Does Your House Make More Than You ?

thequant

With house prices growing faster than incomes in many parts of the UK, is your house making more money than you do? Find out by using the calculator below.
Thanks to an extra breadwinner in the family, Rebecca Fletcher, her husband and two daughters are living the good life in a rural cottage deep in the Hampshire countryside.
The extra breadwinner is their old family home - a three-bedroom, terraced house in south-west London which Mrs Fletcher, a primary school teacher, and her husband, a London solicitor, bought in 2007.
They paid £450,000 - right at the top of the house price boom of the last decade.
When house prices fell after the 2008 banking bust, they feared financial disaster.


"We thought, 'Are we ever going to be able to move out of this house - are we ever going to recoup the money we've spent on it?'" says Mrs Fletcher.


Their fears proved unfounded


http://www.bbc.co.uk/news/business-28564848

lostinrates

No. DH earned considerably more than the house according to that calculator last year. More than he brought home after tax more.


Edit, fwiw, I don't feel frowny face over it. Perhaps there should be a smiley face for the excellent job DH has, or that markets in our area aren't as out of control as others at this time?

115K

lostinrates wrote: »

No. DH earned considerably more than the house according to that calculator last year.

Yes, the same for us.

PasturesNew

My house, according to that calculator, made £4k.
So yes, it does earn more than me!

beecher2

No, thank goodness. It'd be ridiculous if it did as would only price out so many.

LydiaJ

According to the calculator, my house lost slightly last year, so no, it certainly didn't earn more than me.

caronoel

Didnt have my postcode in it, but house prices round our way are up 10-12% on the year.

Add in the increase on our small BTL portfolio, and houses probably "made" well over what the missus and I took home.

michaels

Told me it didn't have any data for our house with full postcode or just first 3 characters

buglawton

There are 2 types of £ in my area
1) The consumer £, where inflation is about 2.5%
2) The owner-occupier living space £, where inflation is about 7%.

My house is only increasing at the average living space £ rate in the sort of places I would plan to live in were I to move.
So all increases in value of my home are wiped out by inflation in the comparable £.

No illusions about increasing wealth due to property prices here!
This poll is not very MSE since it poses the sort of question that tries to make everyone think like a property bull.

lukeh23

I like the way OP red bolds "their fears were unfounded"' as if its debate over, yet half of article continues to highlight how fubar the situation is:

For Danny Gabay, a director of the economic consultancy Fathom, the present level of prices is a sure sign that the housing market is in a bubble.

"I'm certain we're in a bubble," says Mr Gabay. "We were already in a bubble. We never left the bubble."

Between 1995 and 2007, when average UK house prices more than trebled, Mr Gabay repeatedly warned prices were too high.

After the 2008 banking crisis prices fell as the housing bubble began naturally to deflate. But then, Mr Gabay says, rock bottom interest rates and schemes to encourage banks to keep lending such as Help to Buy halted that process.

"These policies all helped to buoy house prices and keep them in suspended animation," says Mr Gabay, "which meant that our housing market remains exceptionally expensive."

Compared to average earnings, Mr Gabay says prices are now 30% higher than they should be.

shortchanged_2

Well, when my lazy !!!!!! of a house goes out to work and earns some money then maybe it will earn more than me. Plus it owes me thousands in unpaid maintenance.