I am afraid that this post will be the blog equivalent of a middle class dinner party because I am going to talk a lot about property prices and how much money we have potentially made on our house. And I really do apologise about that. Sorry.
I know its more than a bit tacky to talk about this kind of stuff. Especially at
dinner parties online to a bunch of strangers. So sorry again.
But I am not going to brag about monetary things. In fact, I am more than a little uncomfortable about how things stand right now, and I need to get a few things off my chest and do a thoughts dump type of post on here. So once again, sorry about that!
Let me be blunt – if and when we sell our house we will make a huge profit. For some reason in our town (and indeed in the rest of the UK) the property market is booming and prices are rising faster than the speed of light.
We were (optimistically) expecting our house to be valued for 30k less than what we are (hopefully) selling it for. One estate agent even insisted that we market it for 15k more than what we have listed it for! Bless him, he kind of looked at us both in disbelief when I said to him “but we don’t want to rip anyone off ” and Rob said “how are first time buyers supposed to get on the property ladder these days?”
Estate agents do get a bad rep, don’t they? To be fair, they don’t do a lot and they insist on driving the property prices up. When they came round to value our place, they all sat down and talked us through what prices other properties on our estate had recently sold for (basically pulling all their information off of Right Move and doing the same research as Rob and I!!) and then adding 15k to the price.
That is their formula. That is how they work. And that is why prices keep going up and up. And its not right really, is it?
I know that there are other factors involved, like buy to let investors, property developers, the fact that we are a crowded small island and the supply and demand etc. But I think that property prices are stupid and I am not happy with how much ours is potentially worth.
I have to tell myself that it is not real money, that it is just Monopoly money really. It is not money that we have earned, it is just a figure on a piece of paper that is in complete contrast to how many £££’s we actually have left to pay back on our mortgage. And if property prices do fall again, which I reckon they will eventually, as long as I am paying below the current going rental rate for the equivalent of my home, then I will not sweat it. In fact, I actually hope prices do fall or level out so that more first time buyers have a fighting chance.
Although saying that, if I wanted to move during a down period, I might be a bit screwed!
At the end of the day my house is a home, not an investment. But we need to get the full market value in order to buy another silly overpriced property to become our new home. We have both worked hard, saved hard and missed out on lots of things to buy (and to keep paying monthly for) this property. But the same can be said for renters. They work hard and scrimp and save to pay their rent and bills each month too.
I wish I had the intelligence to explore this subject deeper, but I will round this post up and leave things as they are for now. After all, who knows what is going to happen in regards to house prices in the future? Will the homebuyers ISA and building more homes really make any difference?
….And I guess thats why property prices are always a hot topic at dinner parties!!!