How has this house gone up so much?

[Deleted User]

An example. nice house in Surrey, older  but modernised  very nicely inside, desireable commuting area, it was sold  in early 2022 for 640K. 'In theory' the price now should have gone up by 1% or more,  but it's up for sale at 600k, reduced recently. 
In just over 4 years from a previous sale in 2019, it's gone up ( if it sells at £600K) by 25k. No one has made a fortune. 

In a west midlands area a reasonably similar sized house, no work needed sold 2020 for £195K and  is now up for £265K ( if it sells at that). 

Some areas  on Rightmove that I have lived in in the past, I look at and am quite gobsmacked by the prices being asked for  what are  essentially little boxes. 

'Worst house on the best street' if you can afford it still has a chance of making you a profit, but not a huge one as far as I can see. 

johnhenstock

[Deleted User] said:

An example. nice house in Surrey, older  but modernised  very nicely inside, desireable commuting area, it was sold  in early 2022 for 640K. 'In theory' the price now should have gone up by 1% or more,  but it's up for sale at 600k, reduced recently. 
In just over 4 years from a previous sale in 2019, it's gone up ( if it sells at £600K) by 25k. No one has made a fortune. 

In a west midlands area a reasonably similar sized house, no work needed sold 2020 for £195K and  is now up for £265K ( if it sells at that). 

Some areas  on Rightmove that I have lived in in the past, I look at and am quite gobsmacked by the prices being asked for  what are  essentially little boxes. 

'Worst house on the best street' if you can afford it still has a chance of making you a profit, but not a huge one as far as I can see. 

these things say nothing, because we don't have all the facts. I can buy a property in an area where prices go up 10% per year and "make a loss" in a day. there are many explanations for this. surrey is big, some areas are dumps, so it doesn't say much. modernised is magnolia paint on offer, cheap plastic all round and a carpet on offer for some people, or a rewire, brand new boiler and an extension for others, again it doesn't mean much! what is desirable? commuting area? for who? I might be in the middle of nowhere, but I'm just around the corner from work, as is my wife. would you could that as a great place for commuting?

most members on this forum simply don't have the most basic understanding of how the UK housing market works and why it's in the state it's in. let alone in relation to the world, geopolitics and many other factors.

MarzipanCrumble

OK - so I have a 1928 detached 4 bed house with very little original features but in a great location overlooking a man-made lake 3 miles  from centre of town.  Although I have maintained exterior (reroof, painting etc and decent garden for area) I have not modernised inside.

I got it vaued for sale by local estate agent - 830Kish. Others on lakeside go for £800-850 to £1.2 million. 

I was advised if I want to sell - don't spend anything on it - it will sell.

Just interested.

Ditzy_Mitzy

johnhenstock said:

[Deleted User] said:

An example. nice house in Surrey, older  but modernised  very nicely inside, desireable commuting area, it was sold  in early 2022 for 640K. 'In theory' the price now should have gone up by 1% or more,  but it's up for sale at 600k, reduced recently. 
In just over 4 years from a previous sale in 2019, it's gone up ( if it sells at £600K) by 25k. No one has made a fortune. 

In a west midlands area a reasonably similar sized house, no work needed sold 2020 for £195K and  is now up for £265K ( if it sells at that). 

Some areas  on Rightmove that I have lived in in the past, I look at and am quite gobsmacked by the prices being asked for  what are  essentially little boxes. 

'Worst house on the best street' if you can afford it still has a chance of making you a profit, but not a huge one as far as I can see. 

these things say nothing, because we don't have all the facts. I can buy a property in an area where prices go up 10% per year and "make a loss" in a day. there are many explanations for this. surrey is big, some areas are dumps, so it doesn't say much. modernised is magnolia paint on offer, cheap plastic all round and a carpet on offer for some people, or a rewire, brand new boiler and an extension for others, again it doesn't mean much! what is desirable? commuting area? for who? I might be in the middle of nowhere, but I'm just around the corner from work, as is my wife. would you could that as a great place for commuting?

most members on this forum simply don't have the most basic understanding of how the UK housing market works and why it's in the state it's in. let alone in relation to the world, geopolitics and many other factors.

One also has to account for the fact that it's necessary to live somewhere.  Someone who bought a three or four bed detached house in the South in, say, the early nineties will have experienced massive appreciation of their residence's value.  The problem, however, is that said appreciation is entirely useless because everyone else's house has increased in value by a similar amount.  Unless one is in a position to up sticks and move to a tumbledown terrace in a former pit village (thanks Mags, you played a blinder), then one is stuck.  Any additional capital raised by the sale would immediately disappear on whatever the new house is.  It is possible to sensibly downgrade, in space terms, but that places one in direct competition with everyone else with a family home to sell and a desire for a bungalow.  Smaller houses become disproportionately expensive, therefore.  One could afford such a thing, but one would resent paying that much for it.  

I'm in a similar position with my car.  Second-hand car price mania means it's worth significantly more than I paid for it, but there's no sensible way of realizing the capital appreciation.  I'd either have to sell it and buy some real old piece of rubbish - which would be silly - or sell it and shell out an equally disproportionate amount on a slightly newer car.  Neither action is any good, so I am forced to keep the car I've got.  

[Deleted User]

johnhenstock said:

Purbeck14 said:

An example. nice house in Surrey, older  but modernised  very nicely inside, desireable commuting area, it was sold  in early 2022 for 640K. 'In theory' the price now should have gone up by 1% or more,  but it's up for sale at 600k, reduced recently. 
In just over 4 years from a previous sale in 2019, it's gone up ( if it sells at £600K) by 25k. No one has made a fortune. 

In a west midlands area a reasonably similar sized house, no work needed sold 2020 for £195K and  is now up for £265K ( if it sells at that). 

Some areas  on Rightmove that I have lived in in the past, I look at and am quite gobsmacked by the prices being asked for  what are  essentially little boxes. 

'Worst house on the best street' if you can afford it still has a chance of making you a profit, but not a huge one as far as I can see. 

these things say nothing, because we don't have all the facts. I can buy a property in an area where prices go up 10% per year and "make a loss" in a day. there are many explanations for this. surrey is big, some areas are dumps, so it doesn't say much. modernised is magnolia paint on offer, cheap plastic all round and a carpet on offer for some people, or a rewire, brand new boiler and an extension for others, again it doesn't mean much! what is desirable? commuting area? for who? I might be in the middle of nowhere, but I'm just around the corner from work, as is my wife. would you could that as a great place for commuting?

most members on this forum simply don't have the most basic understanding of how the UK housing market works and why it's in the state it's in. let alone in relation to the world, geopolitics and many other factors.

No I have all the facts on these two areas, that was my point in posting them above as an example only, rather than somewhere random I know nothing about.  I know both the very specific locations  very well.   And when I say "modernised"  I do not mean cheap and tacky, I mean well done and in some sympathy with the original build, you will have to take my word that I have good taste  lol .  Re  Surrey, "desireable" in ease of  commuting to London or other areas of Surrey, and in surroundings that are  the generally accepted  definition of a 'nice' area, even in estate agent speak. 

Obviously having worked a half mile from home at one point and cycled there every day, I wouldn't even consider that distance a "commute".

Only trying to give the OP, a small example of how a house in one area can go up in value where a similar   ( if not preferable) area pretty much stalls. 

NB in the T & Cs here it says "Please also avoid posting personally identifiable information..." in this case someone else's, so I purposely didn't identify the specific locations. 

Up to him what he does or doesn't do about his present state of misery. 





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johnhenstock

[Deleted User] said:

johnhenstock said:

Purbeck14 said:

An example. nice house in Surrey, older  but modernised  very nicely inside, desireable commuting area, it was sold  in early 2022 for 640K. 'In theory' the price now should have gone up by 1% or more,  but it's up for sale at 600k, reduced recently. 
In just over 4 years from a previous sale in 2019, it's gone up ( if it sells at £600K) by 25k. No one has made a fortune. 

In a west midlands area a reasonably similar sized house, no work needed sold 2020 for £195K and  is now up for £265K ( if it sells at that). 

Some areas  on Rightmove that I have lived in in the past, I look at and am quite gobsmacked by the prices being asked for  what are  essentially little boxes. 

'Worst house on the best street' if you can afford it still has a chance of making you a profit, but not a huge one as far as I can see. 

these things say nothing, because we don't have all the facts. I can buy a property in an area where prices go up 10% per year and "make a loss" in a day. there are many explanations for this. surrey is big, some areas are dumps, so it doesn't say much. modernised is magnolia paint on offer, cheap plastic all round and a carpet on offer for some people, or a rewire, brand new boiler and an extension for others, again it doesn't mean much! what is desirable? commuting area? for who? I might be in the middle of nowhere, but I'm just around the corner from work, as is my wife. would you could that as a great place for commuting?

most members on this forum simply don't have the most basic understanding of how the UK housing market works and why it's in the state it's in. let alone in relation to the world, geopolitics and many other factors.

No I have all the facts on these two areas, that was my point in posting them above as an example only, rather than somewhere random I know nothing about.  I know both the very specific locations  very well.   And when I say "modernised"  I do not mean cheap and tacky, I mean well done and in some sympathy with the original build, you will have to take my word that I have good taste  lol .  Re  Surrey, "desireable" in ease of  commuting to London or other areas of Surrey, and in surroundings that are  the generally accepted  definition of a 'nice' area, even in estate agent speak. 

Obviously having worked a half mile from home at one point and cycled there every day, I wouldn't even consider that distance a "commute".

Only trying to give the OP, a small example of how a house in one area can go up in value where a similar   ( if not preferable) area pretty much stalls. 

Up to him what he does or doesn't do about his present state of misery. 





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it's not about that. a nice house, in a good, desirable area, will have gone up in price since then. if it hasn't, it was overpriced to start with, which is why I'm saying we don't know all the facts.

Mark_Glasses

@johnhenstock all I know is that it's not been extended and looked in reasonable condition when they bought it.

@[Deleted User] Looking at the street view there's plenty of smaller properties along that street and several that look on a par. In the last couple of years the house next door sold for £580k, a flat across the road sold for £170k and a house along the road sold for £785k. The £785k house is much bigger, it's 6 bed over 4 floors and back in 2006 it sold for £500k so that sort of price makes sense. 

@Ditzy_Mitzy this person still works in London. He drives around 20 miles to a train station and then gets the train to London. I was under the impression he kept the London flat to make money and the countryside house because that's where he wanted to live.

Sarah1Mitty2

johnhenstock said:

Purbeck14 said:

An example. nice house in Surrey, older  but modernised  very nicely inside, desireable commuting area, it was sold  in early 2022 for 640K. 'In theory' the price now should have gone up by 1% or more,  but it's up for sale at 600k, reduced recently. 
In just over 4 years from a previous sale in 2019, it's gone up ( if it sells at £600K) by 25k. No one has made a fortune. 

In a west midlands area a reasonably similar sized house, no work needed sold 2020 for £195K and  is now up for £265K ( if it sells at that). 

Some areas  on Rightmove that I have lived in in the past, I look at and am quite gobsmacked by the prices being asked for  what are  essentially little boxes. 

'Worst house on the best street' if you can afford it still has a chance of making you a profit, but not a huge one as far as I can see. 

these things say nothing, because we don't have all the facts. I can buy a property in an area where prices go up 10% per year and "make a loss" in a day. there are many explanations for this. surrey is big, some areas are dumps, so it doesn't say much. modernised is magnolia paint on offer, cheap plastic all round and a carpet on offer for some people, or a rewire, brand new boiler and an extension for others, again it doesn't mean much! what is desirable? commuting area? for who? I might be in the middle of nowhere, but I'm just around the corner from work, as is my wife. would you could that as a great place for commuting?

most members on this forum simply don't have the most basic understanding of how the UK housing market works and why it's in the state it's in. let alone in relation to the world, geopolitics and many other factors.

Many do, recent years have been all about cheap credit, the change back to more normal interest rates is going to be painful for many people and Japan holds a lot of the cards now as well, they have the potential to send mortgage rates here soaring.

MeteredOut

Mark_Glasses said:

@johnhenstock all I know is that it's not been extended and looked in reasonable condition when they bought it.

@[Deleted User] Looking at the street view there's plenty of smaller properties along that street and several that look on a par. In the last couple of years the house next door sold for £580k, a flat across the road sold for £170k and a house along the road sold for £785k. The £785k house is much bigger, it's 6 bed over 4 floors and back in 2006 it sold for £500k so that sort of price makes sense. 

@Ditzy_Mitzy this person still works in London. He drives around 20 miles to a train station and then gets the train to London. I was under the impression he kept the London flat to make money and the countryside house because that's where he wanted to live.

I really think you need to find a a way stop having this guy living rent-free (and probably mortgage free in your view) in your head. You seem to need to know every detail about every aspect of his life.

Mark_Glasses

@MeteredOut shortly after he moved he told me where he had moved to. I asked him where that was because I'd never heard of the town. He explained where it was which sounded a long way away so I asked him what the commute was like. He then said he gets the train to a town I have heard of followed by a 20 mile drive. I wouldn't call that knowing every detail about every aspect of his life