Home improvements are a waste of money
24 July 2008, 08:32 PM
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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
What a sad state the market is in! 
24 July 2008, 08:41 PM
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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.
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24 July 2008, 08:58 PM
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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.
24 July 2008, 09:59 PM
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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.
24 July 2008, 10:05 PM
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24 July 2008, 10:37 PM
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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.....
24 July 2008, 11:15 PM
#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
25 July 2008, 12:22 AM
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£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.
25 July 2008, 12:27 AM
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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.
25 July 2008, 12:32 AM
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25 July 2008, 12:35 AM
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25 July 2008, 01:14 AM
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25 July 2008, 01:17 AM
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25 July 2008, 01:18 AM
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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.
25 July 2008, 01:20 AM
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25 July 2008, 01:22 AM
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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.
25 July 2008, 01:24 AM
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