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Original poster

How do people end up living in a £1 million house?

153 replies

shortsaint · 05/01/2022 20:17

As I do my nightly peruse (daydreaming) on Rightmove (most expensive first) I am wondering how people end up living in a million plus property?

I do not live in the south east or Home Counties, just an ordinary Midlands town. I consider myself fortunate as we come to the last couple of years of the mortgage. We probably have the lowest value house of my friends, with an above average joint income, 2 kids, both work f/t. We have had 2 houses in 20 odd years so haven't followed the property ladder, had no inheritances or windfalls. Is that what it is?

OP posts:
Jisforjuggling · 05/01/2022 22:33

Not quite a million, but my parents bought the family home in 1984 for £60k. They had it valued last month at £900k. And it needs gutting. Most of my friends parents live in properties that will have increased similarly in value

Bluntness100 · 05/01/2022 22:37

[quote shortsaint]@Bluntness100 early 50s, though I did not buy a property until I was 30. Had VERY low paid jobs in my 20s whilst my friends were already on the ladder. We have a few years of supporting kids at uni (one already there) then I'd like to be p/t after 60. Idealistic but y'know... [/quote]
I think that’s it then, late to the propert market, early retirement, average earnings, you’d not expect to be in a seven figure property. But deep down you know others get to thr market earlier, move up it, take mortgages till retirement and don’t go part time when they hit sixty.

We pick our poison op.

MistyElla · 05/01/2022 22:47

In a word: a bit of family money and a lot of right-place-right-time luck. Used 25k of inheritance money for a deposit on a flat in London in 2012. London property then went bananas and the flat doubled in value over 5 years. Sold the flat and used the equity gains to buy a big house in an unfashionable area of another very expensive city. The unfashionable area then became very desirable over the course of a few years, and house prices skyrocketed. The house has more than doubled in value in 4 years. DH is a high earner but we would never be able to afford our house if we were only just now looking to buy now.

onedayoranother · 05/01/2022 22:52

I bought a house back in 2002 for £1.25m. £200k deposit from sale of my house and mortgage for the rest. I sold it 8 years later (we had put £200k in to it) for over £2m. That allowed me to buy a smaller house for £840k cash (my husband had passed away so I couldn't afford the mortgage).
My friend bought her first flat with a friend, then sold it bought a small house with her partner, both earned increasingly more money and eventually sold bought their current house now worth about £1.3m. Both have always work full time (three kids) , are now in late 50s, earn say £150-200k combined, didn't have any help from parents.
Prices are still going up. I just sold one flat last year made £60k profit in three years. Area didn't improve but the market did.
Gone are the days though when a one salary family could buy a decent sized house in Chelsea (like my parents did in the 60s). All his kids and partners combined couldn't afford that same house now.

Original poster
shortsaint · 05/01/2022 22:53

I think my point is I do not really want a £1 million house, I just can't believe how much houses are and, even with low interest, how people pay for them!

I do like looking at them on Rightmove though (not the 'ordinary' ones in London 🤣, no desire to live there), I mean the lovely country houses with large gardens and beams!

Watching any property programme it appears that as long as you have a kitchen diner, bifold doors and sufficient bedrooms you're OK. I count myself as very, very fortunate all told.

OP posts:
coffeeandherb · 05/01/2022 22:56

Our next house will be £1.5M+. Majority of the deposit is coming from DH's investments, which were stocks in a large company that were part of his salary package. We're in London and he's a high earner (over six figures), I'm on min wage working p/t. We bought as FTB in 2012 in central London and hope to sell later this year, so we've only been on one rung of the property ladder. It was already an expensive area so although it's gone up in price, the percentage increase hasn't been as high as certain parts of London. No inheritance or family help.

Bluntness100 · 05/01/2022 23:03

I have a three acre garden and a listed building with lots of beams. No bifold doors, honestly we couldn’t, or more honestly, wouldn’t afford it now. It was seven figures when we bought it eight years ago, zoopla says min increase (south east) about 400k, but off a high base, but that doesn’t Inc the 100k renovations we have done, so new value is much higher.

For us, as said, it was saving, five property moves over 23 years and large salary increases In that time.

ponkydonkey · 05/01/2022 23:06

My first place was 85k in central west London in 1995
It's now worth 1.2m

Second place was 300k in 2005 now worth 1.1m

Spidey66 · 05/01/2022 23:09

@JurgensCakeBabyJesus

My grandparents sold an ordinary 3 bed ex council house in London in the sixties to move out to the suburbs which was the dream in working class areas at the time, that house now would be worth well in excess of a million of they'd just stayed there like some of their contemporaries have
How did they sell an ex council house in the 60s when the RTB didn't come in until the 80s?Confused
ElinorOliphant · 05/01/2022 23:11

Inflated house prices?

Bought my house in 2004 for 200k and it’s now worth 750k so won’t be long til it is worth a million I guess?
I’m in London in an average area.
Can’t afford to move anywhere bigger/nicer though unless we move out.

Bluntness100 · 05/01/2022 23:16

How did they sell an ex council house in the 60s when the RTB didn't come in until the 80s

Agree, it would be Impossible.

QueenofbleedingSheba · 05/01/2022 23:20

My parents have lived in their house 50 years and they paid £35,000. It's in a city suburb that has become very fashionable of late so it's now worth about £950,000. The live literally two streets away from a less fashionable postcode where the same house would be half that. Crazy!

AgathaMystery · 05/01/2022 23:25

This is insane and I know it’s borderline unbelievable but here goes: my childhood home was in a very desirable area of London and had a huge huge garden. Acres. We left during the property crash in the late eighties and the home changed hands a few times. It’s since been demolished and a development of 12 luxury homes has been built on the land. The cheapest is £1.8 million going up to just under £4million. I am flabbergasted by this and sometimes wonder about the family that pulled this stunt off. I found it on Rightmove when reminiscing.

StopStartStop · 05/01/2022 23:25

Dd and her dh married in 2004 - they've had four houses. Their first cost around £110 000, the most recent cost a million. They always add value to their properties, and they have the courage of their convictions.

earsup · 05/01/2022 23:35

I bought a run down house in a non trendy part of east london for 190k...years ago..now its all buggaboos and vegan lattes and cupcake brigade and houses worth 1M.....!!!..most old neighbours have cashed in and gone to essex or the coast....i guess i will one day....!

Bluntness100 · 05/01/2022 23:36

@AgathaMystery

This is insane and I know it’s borderline unbelievable but here goes: my childhood home was in a very desirable area of London and had a huge huge garden. Acres. We left during the property crash in the late eighties and the home changed hands a few times. It’s since been demolished and a development of 12 luxury homes has been built on the land. The cheapest is £1.8 million going up to just under £4million. I am flabbergasted by this and sometimes wonder about the family that pulled this stunt off. I found it on Rightmove when reminiscing.
That’s thoroughly believeable. It’s a long time since the eighties, and no stunt was involved.
scoobydoo1971 · 05/01/2022 23:41

I've inherited the house. I also have other property I need to sell to pay for repairs on the 'mansion'. It is a lovely house and very large, with amazing seaviews etc. However, it needs loads of work and will cost me a lot to modernise and solve the many repair issues its walls harbour. I appreciate I am very lucky in respect of owning this house, but it is cold and expensive to run the heating etc in winter so not all a dream.

earsup · 05/01/2022 23:44

@Bluntness100

How did they sell an ex council house in the 60s when the RTB didn't come in until the 80s

Agree, it would be Impossible.

I think poster may have meant the GLC labour council sell off...??...all my dad's family bought huge houses in hackney in the late 60's and early 70's for 1k to 3k....some still there...worth over 2m some of them now...!!
AgathaMystery · 05/01/2022 23:52

@Bluntness100 yes I didn’t mean stunt in a disparaging way… just the sheer balls of the scheme I guess!

whattodo2019 · 05/01/2022 23:56

We do...
Both bought houses in our early 20's sold them
5 years later for for over £150k profits. Then bought a second house each (before we were going out) then got married and bought together....
aww both have well paid jobs, have/do work in London but live in Home Counties.
Do the Midlands have the same job opportunities?
Did you go to Uni? Both my DH and I went to Russell Group Unis and got 1st class degrees and went into the city...

mobear · 06/01/2022 00:31

DP bought our £1m+ house, mid 50s, high earner. No family money/ inherited wealth. It’s in a ‘nice’ part of London though so a fairly ordinary end of terrace.

onlychildhamster · 06/01/2022 00:45

@shortsaint interesting. my MIL bought her 3 bed terrace in z3 London for 100k in 1997 like you..her house is now worth £750k. Not quite a million but if her house was in my area (also z3 north London), it would definitely be a million. And it was actually slightly cheaper than her area in 1997. I am not sure why my area has grown more than her area, but I chalk it down to good schools and its proximity to Highgate (so it's attractive to young professional couples in Highgate who want a house). Though her area is also attractive to BTL landlords as it has a university with lots of international students. The rental yield is pretty good as a result, I have seen a neighbouring house being rented out for £3000 a month! As if it is shared by 5 students, that's only £600 each.

MsSquiz · 06/01/2022 11:47

@CharlotteGoldenblattYork

'Family money' always confuses me. Does it mean that parents buy a house for their child? Or is there a trust fund?
In our situation, "family money" means there DH's grandfather started a company that his sons took over and expanded. DH also worked for the family company before they sold it. Prior to the sale, each (bloodline) family member had a percentage of the company and so they received the equivalent funds following the sale. They now have a family trust that will work the same way as the company shares did - be passed on to blood relatives only (so DH's will pass to our 2 DC)
emmathedilemma · 06/01/2022 11:47

earn a lot of money (I have uni mates who get annual bonuses as big as my salary!)
inherit / gifted money from family
bought at the right time and made money on previous properties
both partners had a property before they moved in together (doubles your profit when selling)
haven't moved and prices have risen - a lot of people I know (myself included) wouldn't be able to afford the property they live in if they were buying it now.

Isonthecase · 06/01/2022 11:52

I find it fascinating how many people think their house price rises are a result of their own cleverness rather than mostly luck.