Home improvements are a waste of money
#1
Scooby Regular
Thread Starter
Join Date: Nov 2002
Location: Talk to the hand....
Posts: 13,331
Likes: 0
Received 0 Likes
on
0 Posts
Home improvements are a waste of money
"Declining house prices mean that other, previously profitable improvements, such as extensions and new kitchens are now expected to result in negative 'net value added' of between minus £13,806 and minus £20,232."
Looks like the end of the road for all those wannabe 'property developers' and TV programmes like Property Ladder.
I'll bet they are wishing they had never given up their steady well paid jobs to start a 'lucrative new career' now...
House Prices: Home improvements are a waste of money - Telegraph
Looks like the end of the road for all those wannabe 'property developers' and TV programmes like Property Ladder.
I'll bet they are wishing they had never given up their steady well paid jobs to start a 'lucrative new career' now...
House Prices: Home improvements are a waste of money - Telegraph
#3
Scooby Regular
Thread Starter
Join Date: Nov 2002
Location: Talk to the hand....
Posts: 13,331
Likes: 0
Received 0 Likes
on
0 Posts
Couple across from me bought at the top of the market and are currently having a new extension added. I suspected it might not be a good financial decision to go ahead with it in the current climate. Looks like this article proves it. They are losing a fortune.
Last edited by unclebuck; 24 July 2008 at 08:50 PM.
Trending Topics
#8
Scooby Regular
iTrader: (6)
Join Date: Apr 2005
Location: Stroke it baby!
Posts: 33,828
Likes: 0
Received 0 Likes
on
0 Posts
The thing is though, when i do home improvements, it is to do just that - improve my home. I think people have lost sight of this, they dont even call them "houses" anymore everything is "property" this and "property" that.
#11
Really that should say "home improvements are a waste of time if you are doing them for investment purposes" however if you are doing them to improve your own life then they are more than likely a very sensible thing to do.
#12
Scooby Regular
Join Date: Dec 2004
Location: cant spell WGAF
Posts: 3,399
Likes: 0
Received 0 Likes
on
0 Posts
#13
Scooby Regular
Of course, there will still be people who improve their home because they actually want to.......
And not everybody is selling/moving up the property ladder.....
And not everybody is selling/moving up the property ladder.....
#14
we built an extension as we had a growing family not because i was hoping to improve the value of the place. i am not planning on moving if i can help it, got a bungalow so should see me out
#19
Scooby Regular
Join Date: Sep 2001
Location: A powerslide near you
Posts: 10,261
Likes: 0
Received 0 Likes
on
0 Posts
£12k profit
= 40% tax
= £4,800
leaving £7,200
- fees etc.
£6/£7k
- any interest you paid on the £18k in the first place (was it mortgage extension? loan etc., not many people have £18k sitting round, esp when it could be earning interest or invested). Your £12k "profit" could easily end up £5k profit.
And for how much effort, time was that? I'm guessing it took you at least 4 months to do, end to end.
not much of a income stream if doing this professionally.
Anyway, as some have said, if it's about improving your home, making more room etc. then great. The value isn't financial as it were.
#21
Scooby Regular
Join Date: Jul 2002
Location: Surrey/London borders.
Posts: 8,300
Likes: 0
Received 0 Likes
on
0 Posts
So treating it as a business proposition:
£12k profit
= 40% tax
= £4,800
leaving £7,200
- fees etc.
£6/£7k
- any interest you paid on the £18k in the first place (was it mortgage extension? loan etc., not many people have £18k sitting round, esp when it could be earning interest or invested). Your £12k "profit" could easily end up £5k profit.
And for how much effort, time was that? I'm guessing it took you at least 4 months to do, end to end.
not much of a income stream if doing this professionally.
Anyway, as some have said, if it's about improving your home, making more room etc. then great. The value isn't financial as it were.
£12k profit
= 40% tax
= £4,800
leaving £7,200
- fees etc.
£6/£7k
- any interest you paid on the £18k in the first place (was it mortgage extension? loan etc., not many people have £18k sitting round, esp when it could be earning interest or invested). Your £12k "profit" could easily end up £5k profit.
And for how much effort, time was that? I'm guessing it took you at least 4 months to do, end to end.
not much of a income stream if doing this professionally.
Anyway, as some have said, if it's about improving your home, making more room etc. then great. The value isn't financial as it were.
Makes me laugh at how they show the 'profit' you can make. They all fail to mention the hidden costs that wipe out over half of the face profit.
#22
Scooby Regular
Thread Starter
Join Date: Nov 2002
Location: Talk to the hand....
Posts: 13,331
Likes: 0
Received 0 Likes
on
0 Posts
#23
Scooby Regular
Join Date: Jul 2002
Location: Surrey/London borders.
Posts: 8,300
Likes: 0
Received 0 Likes
on
0 Posts
#24
Scooby Regular
Join Date: Aug 2003
Location: Sheffield; Rome of the North
Posts: 17,582
Likes: 0
Received 0 Likes
on
0 Posts
#25
Scooby Regular
Join Date: Dec 2004
Location: cant spell WGAF
Posts: 3,399
Likes: 0
Received 0 Likes
on
0 Posts
#26
Scooby Regular
So treating it as a business proposition:
£12k profit
= 40% tax
= £4,800
leaving £7,200
- fees etc.
£6/£7k
- any interest you paid on the £18k in the first place (was it mortgage extension? loan etc., not many people have £18k sitting round, esp when it could be earning interest or invested). Your £12k "profit" could easily end up £5k profit.
And for how much effort, time was that? I'm guessing it took you at least 4 months to do, end to end.
not much of a income stream if doing this professionally.
Anyway, as some have said, if it's about improving your home, making more room etc. then great. The value isn't financial as it were.
£12k profit
= 40% tax
= £4,800
leaving £7,200
- fees etc.
£6/£7k
- any interest you paid on the £18k in the first place (was it mortgage extension? loan etc., not many people have £18k sitting round, esp when it could be earning interest or invested). Your £12k "profit" could easily end up £5k profit.
And for how much effort, time was that? I'm guessing it took you at least 4 months to do, end to end.
not much of a income stream if doing this professionally.
Anyway, as some have said, if it's about improving your home, making more room etc. then great. The value isn't financial as it were.
#27
Scooby Regular
Join Date: Jul 2002
Location: Surrey/London borders.
Posts: 8,300
Likes: 0
Received 0 Likes
on
0 Posts
#29
Scooby Regular
Join Date: Dec 2004
Location: cant spell WGAF
Posts: 3,399
Likes: 0
Received 0 Likes
on
0 Posts
So treating it as a business proposition:
£12k profit
= 40% tax
= £4,800
leaving £7,200
- fees etc.
£6/£7k
- any interest you paid on the £18k in the first place (was it mortgage extension? loan etc., not many people have £18k sitting round, esp when it could be earning interest or invested). Your £12k "profit" could easily end up £5k profit.
And for how much effort, time was that? I'm guessing it took you at least 4 months to do, end to end.
not much of a income stream if doing this professionally.
Anyway, as some have said, if it's about improving your home, making more room etc. then great. The value isn't financial as it were.
£12k profit
= 40% tax
= £4,800
leaving £7,200
- fees etc.
£6/£7k
- any interest you paid on the £18k in the first place (was it mortgage extension? loan etc., not many people have £18k sitting round, esp when it could be earning interest or invested). Your £12k "profit" could easily end up £5k profit.
And for how much effort, time was that? I'm guessing it took you at least 4 months to do, end to end.
not much of a income stream if doing this professionally.
Anyway, as some have said, if it's about improving your home, making more room etc. then great. The value isn't financial as it were.
#30
Scooby Regular
Thread Starter
Join Date: Nov 2002
Location: Talk to the hand....
Posts: 13,331
Likes: 0
Received 0 Likes
on
0 Posts