| House prices 10:36 - Aug 8 with 4800 views | clive_baker |
I know they’re a national obsession and boring to talk about but does anyone else think they’ve gone absolutely nuts in Suffolk? Anecdotally they seem far higher than the official stats seem to suggest, unless there’s a big gap between marketed price and actual sale price. Maybe it’s that, but I’m seeing things on the market that are far, far higher than I would’ve expected.
Bonkers innit. |  |
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| House prices on 10:41 - Aug 8 with 2582 views | J2BLUE |
I don't really get it. If you don't own a home it's horrible. If you do own a home you still need somewhere to live and most of the market is rising just as fast as your property. Where are the gains? Or is it just paper wealth getting people excited? |  |
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| House prices on 10:48 - Aug 8 with 2546 views | DanTheMan |
| House prices on 10:41 - Aug 8 by J2BLUE |
I don't really get it. If you don't own a home it's horrible. If you do own a home you still need somewhere to live and most of the market is rising just as fast as your property. Where are the gains? Or is it just paper wealth getting people excited? |
Gains are for people who.
1) Invest in property just as a means to sell on for profit
2) People who are at the top of the ladder and do not intend to sell for a while.
3) People who intend to downsize.
You can imagine the demographics I'm sure.
EDIT: Made the points clearer. [Post edited 8 Aug 2022 10:58]
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| House prices on 10:54 - Aug 8 with 2518 views | mylittletown |
| House prices on 10:48 - Aug 8 by DanTheMan |
Gains are for people who.
1) Invest in property just as a means to sell on for profit
2) People who are at the top of the ladder and do not intend to sell for a while.
3) People who intend to downsize.
You can imagine the demographics I'm sure.
EDIT: Made the points clearer. [Post edited 8 Aug 2022 10:58]
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Point 2 in your post is just plain wrong. Your house is worth nothing if you live in it.
Gains are for people who are well up the ladder and DO intend to sell or downsize. |  | | |
| House prices on 10:57 - Aug 8 with 2496 views | usm |
Friends of our put their house up for £850K after the Estate Agent recommended £750K and that theyd need to accept a lower offer
They got three asking price offers at £850K with about 10 days
Thats in relatively rural Essex |  |
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| House prices on 10:57 - Aug 8 with 2485 views | DanTheMan |
| House prices on 10:54 - Aug 8 by mylittletown |
Point 2 in your post is just plain wrong. Your house is worth nothing if you live in it.
Gains are for people who are well up the ladder and DO intend to sell or downsize. |
I guess I should have been clear, but the point I was making is that if it was essentially your "final house" then people can still be happy that it goes up. Might be for inheritance reasons for example. | |
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| House prices on 10:59 - Aug 8 with 2416 views | J2BLUE |
| House prices on 10:48 - Aug 8 by DanTheMan |
Gains are for people who.
1) Invest in property just as a means to sell on for profit
2) People who are at the top of the ladder and do not intend to sell for a while.
3) People who intend to downsize.
You can imagine the demographics I'm sure.
EDIT: Made the points clearer. [Post edited 8 Aug 2022 10:58]
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Good point, can't believe I didn't think of investors. Still doesn't really explain the average person's excitement. Unless it's a bit like the pushback on taxing billionaires from the average person. Sort of financial Stockholm syndrome.
My flat is now worth at least 50% more than I paid for it but I will either be living in it or selling to buy a house which has probably gone up just as much if not more so kind of pointless. | |
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| House prices on 11:01 - Aug 8 with 2396 views | DanTheMan |
| House prices on 10:59 - Aug 8 by J2BLUE |
Good point, can't believe I didn't think of investors. Still doesn't really explain the average person's excitement. Unless it's a bit like the pushback on taxing billionaires from the average person. Sort of financial Stockholm syndrome.
My flat is now worth at least 50% more than I paid for it but I will either be living in it or selling to buy a house which has probably gone up just as much if not more so kind of pointless. |
Yeah, unless you're at the top it really makes things worse for you if you ever want to move somewhere slightly bigger or a better location.
A position I find myself in. Any increase just stretches out the rungs on the ladder whilst wages in no way keep up.
Can't say I understand the attitude that people should just get used to renting either. | |
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| House prices on 11:02 - Aug 8 with 2387 views | EddyJ |
House prices rising/inflation also increase the % of equity you have on your house compared to remaining mortgage.
Lets say you own a house worth 100k with a 50k mortgage. Your equity is 50% of that house. If the house doubles in value overnight to 200k, your equity is now 75% of the value of the house.
This benefits anyone planning to move house soon or remortgage as you will be able to borrow more (at the same LTV) or get better rates (Better LTV on a property of the same value). [Post edited 8 Aug 2022 11:07]
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| House prices on 11:03 - Aug 8 with 2379 views | homer_123 |
| House prices on 10:48 - Aug 8 by DanTheMan |
Gains are for people who.
1) Invest in property just as a means to sell on for profit
2) People who are at the top of the ladder and do not intend to sell for a while.
3) People who intend to downsize.
You can imagine the demographics I'm sure.
EDIT: Made the points clearer. [Post edited 8 Aug 2022 10:58]
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Point 3 - rarely does downsizing mean you end up with pots of cash. |  |
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| House prices on 11:05 - Aug 8 with 2356 views | DanTheMan |
| House prices on 11:03 - Aug 8 by homer_123 |
Point 3 - rarely does downsizing mean you end up with pots of cash. |
Maybe not tonnes of money, but it certainly wouldn't hurt over a long period. | |
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| House prices on 11:07 - Aug 8 with 2339 views | hype313 |
| House prices on 10:57 - Aug 8 by usm |
Friends of our put their house up for £850K after the Estate Agent recommended £750K and that theyd need to accept a lower offer
They got three asking price offers at £850K with about 10 days
Thats in relatively rural Essex |
Which is great, but the house they are trying to buy will be in the same boat, so they will essentially be no net gain, and we're left with a hugely over inflated market.
Everyone needs first time buyers regardless of where you are on the ladder, pull the ladder up too high and no one wins. |  |
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| House prices on 11:11 - Aug 8 with 2316 views | hype313 |
| House prices on 11:02 - Aug 8 by EddyJ |
House prices rising/inflation also increase the % of equity you have on your house compared to remaining mortgage.
Lets say you own a house worth 100k with a 50k mortgage. Your equity is 50% of that house. If the house doubles in value overnight to 200k, your equity is now 75% of the value of the house.
This benefits anyone planning to move house soon or remortgage as you will be able to borrow more (at the same LTV) or get better rates (Better LTV on a property of the same value). [Post edited 8 Aug 2022 11:07]
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But you then run the risk of ending up in negative equity (early 90's syndrome)
If your house doubles in value due to current climate and you remortgage to that affect, I'm not sure it's something I would feel overly comfortable about. | |
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| House prices on 11:12 - Aug 8 with 2312 views | The_Flashing_Smile |
| House prices on 10:59 - Aug 8 by J2BLUE |
Good point, can't believe I didn't think of investors. Still doesn't really explain the average person's excitement. Unless it's a bit like the pushback on taxing billionaires from the average person. Sort of financial Stockholm syndrome.
My flat is now worth at least 50% more than I paid for it but I will either be living in it or selling to buy a house which has probably gone up just as much if not more so kind of pointless. |
Depends where you are now and where you're intending to move to, surely? I'm buying a flat in London but eventually planning to buy a house outside London.
I guess London's a bit of an anomaly/it's own bubble though. |  |
| Trust the process. Trust Phil. |
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| House prices on 11:14 - Aug 8 with 2291 views | ArnoldMoorhen |
| House prices on 10:54 - Aug 8 by mylittletown |
Point 2 in your post is just plain wrong. Your house is worth nothing if you live in it.
Gains are for people who are well up the ladder and DO intend to sell or downsize. |
Not at all.
If someone bought a house for £200,000 in 1995 on a 25 year mortgage, and it is now worth £750,000 and paid off, they could, for example, remortgage it for £500,000 and buy some flats at auction for buy to let, taking the profit "to supplement their pension" and keeping the whole house price inflation merry-go-round spinning.
Or set up a business with that capital.
Or invest in the Stock market with it.
We live in a Capitalist Society, and circumstances have dealt a winning hand to anyone who was able to be fortunate enough to be born in the 1940s or 1950s and who made the decision to buy a house as soon as they were able.
They will say that it is all down to their "hard work and saving", but they bought houses for 3 or 4 times average annual salary, whereas people entering the market today are looking at 7 times average salary for a small flat. And paying rent to "supplement the pensions" of landlords at 50% of take home pay, making it impossible for them to save a year's salary as a deposit | | | |
| House prices on 11:17 - Aug 8 with 2252 views | The_Flashing_Smile |
| House prices on 10:54 - Aug 8 by mylittletown |
Point 2 in your post is just plain wrong. Your house is worth nothing if you live in it.
Gains are for people who are well up the ladder and DO intend to sell or downsize. |
"Your house is worth nothing if you live in it."
That's just nonsense. | |
| Trust the process. Trust Phil. |
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| House prices on 11:17 - Aug 8 with 2252 views | EddyJ |
| House prices on 11:11 - Aug 8 by hype313 |
But you then run the risk of ending up in negative equity (early 90's syndrome)
If your house doubles in value due to current climate and you remortgage to that affect, I'm not sure it's something I would feel overly comfortable about. |
Not necessarily. Lets say you buy a house in year 1 for £300k with a £60k deposit on a 5 year fix. For simplicity, your mortgage is interest only. You had a LTV of 80% so got middling rates from the bank.
In year 6, you remortgage because your fixed period is up. Your house is now worth £500k. You still owe £240k (interest only mortgage). You now have a LTV of 48% and can get a better rate from the bank as the loan is less risky for them.
You are not taking on any additional risk. You are borrowing the same amount. You are just getting a relatively better rate. There is less risk of negative equity than when the house was worth £300k. [Post edited 8 Aug 2022 11:19]
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| House prices on 11:17 - Aug 8 with 2246 views | usm |
| House prices on 11:07 - Aug 8 by hype313 |
Which is great, but the house they are trying to buy will be in the same boat, so they will essentially be no net gain, and we're left with a hugely over inflated market.
Everyone needs first time buyers regardless of where you are on the ladder, pull the ladder up too high and no one wins. |
Well, theyre planning to buy a smaller, cheaper, run down place, in a better position, and do it up/extend it
Hes a tradie so will be able to get it done well - and at a much lower cost than I could
So they should end up with a better house, in a better area and probably some cash in the bank, with a house that is probably worth more than their original one would be worth
Helps them when they come to sell on and maybe trade down when they retire | |
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| House prices on 11:26 - Aug 8 with 2169 views | J2BLUE |
| House prices on 11:12 - Aug 8 by The_Flashing_Smile |
Depends where you are now and where you're intending to move to, surely? I'm buying a flat in London but eventually planning to buy a house outside London.
I guess London's a bit of an anomaly/it's own bubble though. |
I'm in IP3 and have aspirations to move to...IP3. | |
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| House prices on 11:27 - Aug 8 with 2170 views | giant_stow |
| House prices on 11:03 - Aug 8 by homer_123 |
Point 3 - rarely does downsizing mean you end up with pots of cash. |
Not sure I agree boss. Mrs ullaa's mum flogged her 3 bed queens Park bog stand terrace 8 years back for a round mill. Bought a little former gatehouse cottage, with an acre of land in Somerset for less than half. She's since been living off the difference, in the absence of a pension. |  |
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| House prices on 11:29 - Aug 8 with 2144 views | clive_baker |
| House prices on 10:41 - Aug 8 by J2BLUE |
I don't really get it. If you don't own a home it's horrible. If you do own a home you still need somewhere to live and most of the market is rising just as fast as your property. Where are the gains? Or is it just paper wealth getting people excited? |
I don’t get the national obsession with prices. As you say it’s paper gains for most people who have 1 property that they live in. Unless you can downsize (or downvalue more to the point) and release equity.
My post wasn’t so much around that point, more the absolute asking prices seem nuts. Perhaps I’m just out of touch or perhaps it’s just a big gap on average between asking and achieved sale price. It’s anecdotal but I’m seeing places being marketed for way more than they were in 2019 or 2020. Perhaps a covid / wfh effect sending people out of urban areas into the sticks to get more house for the money. Perhaps general market inflation or maybe greedy agents. Or a bit of all of that. It’s mad though, seen a place go on the market for offers over £550k. The owners bought it 2 years ago for £450k and have seemingly done nothing to it. Perhaps the asking price is overly ambitious but it’s not unique in +20% or more in the last 2 years. Is that normal? Maybe that is what the stats show but I had assumed it wouldn’t be so bonkers. | |
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| House prices on 11:34 - Aug 8 with 2112 views | BloomBlue |
WFH
More and more people moving out from London commuter belt to the countryside as they don't need to be in London/office pushing up the prices |  | | |
| House prices on 11:35 - Aug 8 with 2111 views | blueasfook |
| House prices on 11:12 - Aug 8 by The_Flashing_Smile |
Depends where you are now and where you're intending to move to, surely? I'm buying a flat in London but eventually planning to buy a house outside London.
I guess London's a bit of an anomaly/it's own bubble though. |
Aren't you like 50 now? Bit old to be buying for the first time and then looking at moving after that. You'll have to work until you're about 80 to pay off your mortgages |  |
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| House prices on 11:36 - Aug 8 with 2103 views | Dubtractor |
We've sold and bought this year, both in Suffolk, and the prices for both are stupid for the houses in question. Our house had gone up 80% in value since we bought it 10 years ago.
If you want a detached (not big, just detached) house, with a decent garden, then you need to spend north of £500k, and often a long way north of that. [Post edited 8 Aug 2022 11:39]
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| House prices on 11:39 - Aug 8 with 2072 views | giant_stow |
| House prices on 11:35 - Aug 8 by blueasfook |
Aren't you like 50 now? Bit old to be buying for the first time and then looking at moving after that. You'll have to work until you're about 80 to pay off your mortgages |
Hey go easy Mr. Lots of people never have the chance to buy a place and a flat in London could easily be with half a mill. | |
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| House prices on 11:46 - Aug 8 with 2045 views | clive_baker |
| House prices on 11:36 - Aug 8 by Dubtractor |
We've sold and bought this year, both in Suffolk, and the prices for both are stupid for the houses in question. Our house had gone up 80% in value since we bought it 10 years ago.
If you want a detached (not big, just detached) house, with a decent garden, then you need to spend north of £500k, and often a long way north of that. [Post edited 8 Aug 2022 11:39]
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Yep. Mental isn’t it, £500k would’ve given you a lot of choice only 4 or 5 years ago but now it really doesn’t. Still get a nice house of course don’t get me wrong, but so it bloody well should for 16x the average full time salary.
Contrary to what I just said I just checked the official stats and apparently the East of England has seen 10% increases for the past 2 years. So compounded that’s 21% since mid 2020. Absolutely nuts, and apparently I’m completely out of touch then. | |
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