What’s wrong with this property

Hoenir

Herzlos said:

ReadySteadyPop said:

Herzlos said:

ReadySteadyPop said:

Herzlos said:

ReadySteadyPop said:

How much do you think the 400k flat cost in 2008?

Somewhere about £250k. Someone will have made a tidy profit on it after holding it for 17 years. 

Assuming you mean 5 Inkwell close, which was the first link I found in here to a 400k flat, we can see the price history:

https://www.rightmove.co.uk/house-prices/details/d8ae29fe-8eb9-4059-8799-fe0bd097fa67

It was first sold for £138k in 1999, then for £405k in 2018. It failed to sell in 2023 and I don't see an asking price for it. 

Why it sold for £405k in 2018 and is now for sale for £400k in 2025 I don't know. Maybe it was wildly overpriced back then, maybe it's a market correction. 

What do you reckon it'll be worth in 2050? More or less than £400k?

Not someone buying now though?

It depends when they sell it. It could be worth £800k in another 20 years. 

Maybe the current seller bought at the wrong time, or overpaid for whatever reason. It doesn't matter. How does it compare to what else is available?

Or like this seller they could be struggling to get back what they borrowed ten years ago?

After 10 years of payments they'll owe significantly less than the asking price even with a minimal deposit. You can't really infer anything. 

Depends on the mortgage term.  

“Compound interest is the eighth wonder of the world. He who understands it, earns it…he who doesn't……pays it.”

user1977

GDB2222 said:

I keep getting feelings of Deja vu on these threads with Ybe. The same points get made repeatedly, but they’re ignored, and the threads go on, round and round, at enormous length. 

For over four years and counting...

Emmia

Herzlos said:

ReadySteadyPop said:

Herzlos said:

ReadySteadyPop said:

Herzlos said:

ReadySteadyPop said:

How much do you think the 400k flat cost in 2008?

Somewhere about £250k. Someone will have made a tidy profit on it after holding it for 17 years. 

Assuming you mean 5 Inkwell close, which was the first link I found in here to a 400k flat, we can see the price history:

https://www.rightmove.co.uk/house-prices/details/d8ae29fe-8eb9-4059-8799-fe0bd097fa67

It was first sold for £138k in 1999, then for £405k in 2018. It failed to sell in 2023 and I don't see an asking price for it. 

Why it sold for £405k in 2018 and is now for sale for £400k in 2025 I don't know. Maybe it was wildly overpriced back then, maybe it's a market correction. 

What do you reckon it'll be worth in 2050? More or less than £400k?

Not someone buying now though?

It depends when they sell it. It could be worth £800k in another 20 years. 

Maybe the current seller bought at the wrong time, or overpaid for whatever reason. It doesn't matter. How does it compare to what else is available?

Or like this seller they could be struggling to get back what they borrowed ten years ago?

After 10 years of payments they'll owe significantly less than the asking price even with a minimal deposit. You can't really infer anything. 

And, if they'd be otherwise renting they've already least hung onto the money they'd have spent in rent by getting equity in their own place.

ReadySteadyPop

Emmia said:

Herzlos said:

ReadySteadyPop said:

Herzlos said:

ReadySteadyPop said:

Herzlos said:

ReadySteadyPop said:

How much do you think the 400k flat cost in 2008?

Somewhere about £250k. Someone will have made a tidy profit on it after holding it for 17 years. 

Assuming you mean 5 Inkwell close, which was the first link I found in here to a 400k flat, we can see the price history:

https://www.rightmove.co.uk/house-prices/details/d8ae29fe-8eb9-4059-8799-fe0bd097fa67

It was first sold for £138k in 1999, then for £405k in 2018. It failed to sell in 2023 and I don't see an asking price for it. 

Why it sold for £405k in 2018 and is now for sale for £400k in 2025 I don't know. Maybe it was wildly overpriced back then, maybe it's a market correction. 

What do you reckon it'll be worth in 2050? More or less than £400k?

Not someone buying now though?

It depends when they sell it. It could be worth £800k in another 20 years. 

Maybe the current seller bought at the wrong time, or overpaid for whatever reason. It doesn't matter. How does it compare to what else is available?

Or like this seller they could be struggling to get back what they borrowed ten years ago?

After 10 years of payments they'll owe significantly less than the asking price even with a minimal deposit. You can't really infer anything. 

And, if they'd be otherwise renting they've already least hung onto the money they'd have spent in rent by getting equity in their own place.

Unless they paid in cash for the house they have to pay the bank to rent the debt they borrowed, if they make a loss when they sell all that is gone. In fact the only way todays prices make sense at today`s interest rates is if you make a big profit when you sell, that is looking more and more unlikely for most buyers now though.

Emmia

ReadySteadyPop said:

Emmia said:

Herzlos said:

ReadySteadyPop said:

Herzlos said:

ReadySteadyPop said:

Herzlos said:

ReadySteadyPop said:

How much do you think the 400k flat cost in 2008?

Somewhere about £250k. Someone will have made a tidy profit on it after holding it for 17 years. 

Assuming you mean 5 Inkwell close, which was the first link I found in here to a 400k flat, we can see the price history:

https://www.rightmove.co.uk/house-prices/details/d8ae29fe-8eb9-4059-8799-fe0bd097fa67

It was first sold for £138k in 1999, then for £405k in 2018. It failed to sell in 2023 and I don't see an asking price for it. 

Why it sold for £405k in 2018 and is now for sale for £400k in 2025 I don't know. Maybe it was wildly overpriced back then, maybe it's a market correction. 

What do you reckon it'll be worth in 2050? More or less than £400k?

Not someone buying now though?

It depends when they sell it. It could be worth £800k in another 20 years. 

Maybe the current seller bought at the wrong time, or overpaid for whatever reason. It doesn't matter. How does it compare to what else is available?

Or like this seller they could be struggling to get back what they borrowed ten years ago?

After 10 years of payments they'll owe significantly less than the asking price even with a minimal deposit. You can't really infer anything. 

And, if they'd be otherwise renting they've already least hung onto the money they'd have spent in rent by getting equity in their own place.

Unless they paid in cash for the house they have to pay the bank to rent the debt they borrowed, if they make a loss when they sell all that is gone. In fact the only way todays prices make sense at today`s interest rates is if you make a big profit when you sell, that is looking more and more unlikely for most buyers now though.

You've spent many years staying that prices will collapse "tomorrow" but that tomorrow (so far) has yet to arrive. Meanwhile you're watching prices continue to rise, sometimes quickly, sometimes slowly...

Herzlos

ReadySteadyPop said:

Unless they paid in cash for the house they have to pay the bank to rent the debt they borrowed, if they make a loss when they sell all that is gone. In fact the only way todays prices make sense at today`s interest rates is if you make a big profit when you sell, that is looking more and more unlikely for most buyers now though.

Or you could pay rent for more than a standard mortgage term and be where you started after buying your landlord another house. 

Generally, if you buy *anything* and sell it too quickly you'll lose money. Just look at what 6-month old car costs compared to new. 

Herzlos

user1977 said:

GDB2222 said:

I keep getting feelings of Deja vu on these threads with Ybe. The same points get made repeatedly, but they’re ignored, and the threads go on, round and round, at enormous length. 

For over four years and counting...

I knew it was a while. That's a lot of rent/mortgage payments. 

Herzlos

Hoenir said:

Depends on the mortgage term.  

“Compound interest is the eighth wonder of the world. He who understands it, earns it…he who doesn't……pays it.”

Oh absolutely. 

On a fairly standard 25 year term, you'd have repaid about 27% of the purchase price.
On a 40 year term, you'd have only repaid 11%.

If the house price has gone down by less than that, you're still in the positive. If it's gone up you're laughing. If you're renting you're still at 0. 

MeteredOut

Ybe said:

MeteredOut said:

@Ybe it is 12 days since you started this thread. Have you viewed any properties in that time?

If not, its starting to look like you're an digital version of those people that just go view houses for the sake of viewing, but can never commit to making a decision.

Are you actually wanting to buy a property to live in? Or are you seeing this as investment?

It’s to live in. I’ve booked a few viewings yes. The new build is off plan so there’s nothing to view. 

How have the viewings gone?

Tabieth

ReadySteadyPop said:

Emmia said:

Herzlos said:

ReadySteadyPop said:

Herzlos said:

ReadySteadyPop said:

Herzlos said:

ReadySteadyPop said:

How much do you think the 400k flat cost in 2008?

Somewhere about £250k. Someone will have made a tidy profit on it after holding it for 17 years. 

Assuming you mean 5 Inkwell close, which was the first link I found in here to a 400k flat, we can see the price history:

https://www.rightmove.co.uk/house-prices/details/d8ae29fe-8eb9-4059-8799-fe0bd097fa67

It was first sold for £138k in 1999, then for £405k in 2018. It failed to sell in 2023 and I don't see an asking price for it. 

Why it sold for £405k in 2018 and is now for sale for £400k in 2025 I don't know. Maybe it was wildly overpriced back then, maybe it's a market correction. 

What do you reckon it'll be worth in 2050? More or less than £400k?

Not someone buying now though?

It depends when they sell it. It could be worth £800k in another 20 years. 

Maybe the current seller bought at the wrong time, or overpaid for whatever reason. It doesn't matter. How does it compare to what else is available?

Or like this seller they could be struggling to get back what they borrowed ten years ago?

After 10 years of payments they'll owe significantly less than the asking price even with a minimal deposit. You can't really infer anything. 

And, if they'd be otherwise renting they've already least hung onto the money they'd have spent in rent by getting equity in their own place.

Unless they paid in cash for the house they have to pay the bank to rent the debt they borrowed, if they make a loss when they sell all that is gone. In fact the only way todays prices make sense at today`s interest rates is if you make a big profit when you sell, that is looking more and more unlikely for most buyers now though.

I find your stance utterly baffling. Of course the buyer has to pay interest on their mortgage. And of course a “bad” purchase or selling very quickly after buying may lose money for the buyer. But a more sensible purchase that isn’t immediately sold is very different. 

And what’s the alternative? People have to live somewhere. For the vast majority that means paying rent or paying a mortgage. So when considering if buying is a good idea or not, the opportunity cost has to be considered. Rents are significantly higher than mortgages. Landlords need their mortgage covered, their costs covered, empty periods covered, and they want to make a profit. So the person renting is paying all of that every month. A person paying a mortgage is paying the mortgage and of course have maintenance costs. But they are not paying the landlord the empty period or the profit chunks of money. 

I’ve just bought again after renting for too long. My mortgage is significantly (£400 pcm) cheaper than my rent was (and the landlord put the rent up by £100 pcm after I moved out). I now live in a 2-bed Victorian terrace which I love. It is comfortable, cheaper to run, suits my lifestyle and meets my needs. (Rather than a soulless flat which cost a fortune to heat because it was all electric). I’ve made my house mine (and hopefully added value) by replacing the rotting 1980s kitchen and bathroom. Other comparable houses in the area are being sold for £40k more than I paid (and they don’t have the downstairs loo and utility room that mine has). 

I’m sure you’ll say I’ve been stupid and I should have carried on renting. But buying has significantly reduced my monthly outgoings, given me an asset, and I have the security of owning my home. I can only lose my home if I stop paying my mortgage. Before I was at the whim of a private landlord. The thought of renting into retirement was scary and I feel so much happier and secure now I own. 

Buying isn’t for everyone and obviously isn’t risk free. But buying in the U.K. has many, many advantages over renting. As long as one is sensible, does research, and makes good choices, buying is almost always going to be the better option. I gather you have a history on here and I do think you have an agenda. That’s fine and you can obviously post what you like but I do think your advice is quite biased to your agenda and not helpful in many cases. Please consider the impact your words may have.