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?

How you’ve made me laugh with your honesty!
Reading another thread, I thought about this yesterday. We bought at the end of 1986. Naice area with excellent schools. Our house is now worth ten times the price we paid.
Your DB’s house will only archieve the price someone is prepared to pay. Rachel will be rubbing her hands with glee.

Shame the hundred millionaires and billionaires can be exempt from this progressive tax system. Uhh?!

This seems odd. Massive increases happened a bit earlier than that… obviously some areas have gone up hugely but that increase during that period seems, well,… odd.

So in this case, the £220k may not pertain to the property you are seeing advertised - it may relate to a lodge, cottage, barn conversion on the property that was sectioned off. It comes up in the details because the address at the time of the sale would have been linked to the estate.

I’ve see this before where large estates are parcelled off and bits of it are sold on an ad hoc basis.

I bet it’s Winchester!

Bought mine 25 years ago - it is worth 10x what I paid then. I’ve done work but not extended (beyond knocking through the kitchen into the outdoor loo and adding French doors onto that back wall).

Yes, this. My first house (classic 2-up, 2-down terrace) increased in value enormously. At least some of my profit should have been taxed. I didn't lift a finger to 'earn' it, I was simply very lucky. We all need better public services and we've got to pay tax to get them. Better to start taxing unearned house profits than to have wage-earners struggling with an increasing tax burden imo. I'm not surprised the OP mentions jealousy: too much is down to luck, and it feels unfair.

There was no house on it in 2020, it was just the plot that was sold for £220,000.

I boughgt at £575k in 2000 and sold at £850k in 2002. Last year the same house sold for £2.25m.

But if you were going to buy another 2 up 2 down you'd have needed all of the money you received, as presumably all the other similar properties had increased in a similar way.

If you'd have been taxed on that growth then you wouldn't have been necessarily able to buy an identical property two streets over - which makes no sense at all.

have you checked online that he definitely payed £300,000 for it originally ?

Why, how much would go on tax?

Yup, definitely checked and they mention it every time they talk about how much they're going to make!

Well a house is only worth however much someone is willing to pay.

maybe he got a good deal initially or maybe he’s just overpriced it now. You did say it’s been on market for a year.

Now ive had a good look on google maps I think you're onto something. The city and surrounding area is all terrace houses and there is only one area very close to the city that is made up detached houses with huge gardens. After beyond this area is terraced houses with small gardens.

How different would that be from our current tax system? It this socialism or communism? Sorry if my questions are dumb I have no clue lol
Would like to know what to google! 😅

A nice area in a dodgy-ish northern city.
It's only worth £105 now. I bought it for £80 just over 10 years ago. 10 years before that it sold for £8! Between the £8 and £80 nothing changed, just the market.

I can’t answer you about tax but plenty are super knowledgeable on here so might help.

I have some friends who benefitted massively from property prices increasing in their city, though not to this extent. They got lucky and bought their first house at just the right time.

In a desirable area of a large ish city, I did buy a semi in 2004. Sold in 2023 for 200000 more. I’d say a 300000 would have had a similar uplift - in the area I bought a 300000 house at the time would be a large, detached and at least 4 bed. They now sell for 600000 max

It literally tells you when the house was built in the description. And it wasn’t in the past 6 years.

2006?!??? This is plain wrong.

There’s no way the house was anything like it is now if it sold for £90k in 2006. Either it was derelict and has had loads of money spent on it or that £90k transfer wasn’t arms length for full value.

Huge increases are the norm in many parts but 300k to 4m is still not the norm.

Was 300k the average price at the time or did they get it very cheap?

The only one I can see that sold in 2020 for £220k is a Plot, with planning permission for a house. The only pictures are a field, and plans for a small house. I can’t see any past sold prices for the mansion.