To think there is something off about this?

[turnitinnow]

A house was bought for £300,000 in 2006 is now on sale for £4,500,000.

I'm shocked, and my maths could be off there, but is that a 1400% (15x) increase in 20 years?

@GoldMerchant I was thinking the same thing re the gift and inflation.

From the advert: "It has been in the same family for over 200 years, and today, it is being sold by close relatives as it is surplus to requirements." So I'm going to assume that £220,000 sale was not absolutely typical or necessarily at the true market value.

That is beautiful. I hope whoever buys it treats it kindly and doesn't rip out all the character.

1996 yes but not now. Which city? HRTFT

Well wait to see if he gets any offers....
Property is open market
If someone wants to pay that money they will
If no one does it wont sell

2006 was the middle of the recession and the market was dead. My mil could only get 150000 for a house that sold 5 years ago for 500000 thats due to the market been dead. So the time they brought the fact they could. Area becoming up and coming will all be factors

How much has he spent on it?

I did suspect it must have been a related party sale... but the two links I've shared are the only two houses that are currently on right move outside the M25 for £4.5m and have a similar acquisition cost and time line that the OP mentions.

There are a lot with no sales history, but I would've expected a 2006 sale price to be shown.

Come on you know it’s very unusual. Otherwise a huge amount of people would be property millionaires. A quick google and its unusual to go up the average in that time is a 74% increase.
The only reason I could see such an increase is if it was a rundown property and someone built a mansion in its place and the area has seen a big increase in value generally. As you say they’ve done nothing to it - well wait and see what they eventually sell it for.

Yes, an effective progressive tax system should be sorting this out.

@GoldMerchant

indeed.

Rightmove link or we wont believe you OP

No that was boom time. 2008 was the crash in prices.

We bought our house in 2002 for £200K, have maintained it but not particularly improved it (e.g. we replaced the kitchen but only because old one was on its last legs) and it was recently valued at £600K. OP's example seems a huge increase.

And how would they do that?

After all of you and I buy the same new build house tomorrow in different streets in the same town and keep them for 20 years how would you account for the following in your scheme:

I have let my house go to wrack and ruin and done no decorating/landscaping or updates of kitchen bathrooms.

You have modernised, maintained and enhanced with an extension, lovely gardens, bathrooms an kitchens.

The school you are in catchment for is excellent and the school my house is in catchment for is very poor.

The house next door to me has been turned into a funeral parlour.

The road behind my house has been upgraded to a dual carriageway removing all the traffic from your road.

Apart from anything, house prices move up and down with the economy, cost of living, interest rates, government policy, taxation, housing supply, population levels etc.

And finally, if you are looking at what is “unfair” start with the fact that your Dad was in a position to provide both his children with down payments which enabled them to buy houses in the first place. What about all the people whose parents either can’t afford to do that or choose not to.

Has it got a lot of land and your brother has got planning permission for say 10 flats?

In complete contrast to your brother’s experience, OP, my relatives bought a house for £260k in 2003 and are struggling to sell it for £500k now, 23 years later…

They bought it outright, made no rental income from it (as their adult children have all lived there over the years), and could have made more money by putting £260k in a cash savings account over the same period.

Not everyone did well out of the property market in the last 20 years.

Don’t believe it, since the same money would get you this.

www.bucksfreepress.co.uk/news/24879655.gerrards-cross-luxury-country-house-sale-4-5m/

If they haven’t added value by upgrading it to make it the most energy efficient house, added crazy things like a library and games room, I’d say yanbu!!!!!

No - it may have been a dilapidated 2 bed bungalow and since been demolished and rebuilt/enlarged into a 5bed, 5bath luxury property with cinema room and pool now.

though in this case it was probably an internal family sale to transfer title. It was def worth more than £220k back then!

I think it might feasible if it was an unpopular part of a city that's become gentrified. Parts of Bristol and East London have seen massive increases.....but it hasn't sold yet!

The house next door to me has been turned into a funeral parlour

Wellllll, at least the neighbours are quiet then, so it's not all bad....

🙂

They certainly aren’t going to complain about noise from your garden party.

Some people are a wee bit squeamish about such things though

Is it a 4.5 million size house for the area? If so, then obviously it did not sell for what it was worth in 2006, but as part of a family settlement, or gift, or any number of cash/trust reasons and you are not comparing like with like here.

This says it's been ont he same family for 200 years. It could have been the £200k was a symbolic sum given to a family member. You sometimes see houses "selling" for a fraction of its worth and it was someone buying out in a divorce or inheritance, or even have houses that are just given away, and they appear as "love and affection" in official documents.