Downsizing and Up-pricing.
 

I know it has to be done, and I'm sure I'll adapt in time, but it certainly is frustrating looking at property where you get half the house at twice the price than the one you currently reside in.

Just wondering how others have coped with the transition, if they have been in a similar situation.

Re: Downsizing and Up-pricing.
 

Absolutely, especially if you want to live in SE England in the stockbroker belt like us. We luckily kept our house when we moved to Canada and the value now for an end terrace is £430 000. We sold for the equivalent of £250 000 in Canada, Vancouver Island. As we are retired we could live anywhere and I have often looked at houses near coast or in a small village for £250 000 and bigger! OH refuses to move again!

We had our house painted out before we moved in and on first day we were back popped in to see it. I got such a shock at size of it I burst into tears. We kept our queen beds and they just about fit in the rooms. Our study is so full of furniture that not a bit of space is left. Initially I was unhappy with just one bathroom and the tiny rooms compared to Canada but six months later I have got used to it. I now like the smaller space because even though it is small, the house is well built and extremely cosy. I cannot hear tv in lounge dowstairs if my door is closed. In Canada you could hear every noise because of walls being of drywall. Also electricity is expensive here so heating costs are lower.

My husband does not really want anyone from Canada to visit us because he says they will look down their noses at the size of house!!! I also understand now why people do not entertain as much at home or have so many people stay overnight. Space is at a premium.

We should have got rid of lots more furniture!

You do adapt though. Good luck.

Re: Downsizing and Up-pricing.
 

Forgot to add, the loft is full of stuff stored and the garage is so small it can only just fit our little hyundaii10 in it when we go away long term but hubby hasto remove some stuff and store in shed for duration. He uses the garage as a workshop and stores all his tools in there high up on walls. Coming from a double garage with room for a large suv it is a shock.

Re: Downsizing and Up-pricing.
 

Hi Bud!

Think of it this way. What with the excessive pumping up of assets due to ultra-low interest rates, particularly here in the UK where real estate has been pretty much the 'only game in town' and therefore a one-way bet that is going to go up, NOW is not the time to even consider buying IMHO.

Particularly when CRASH is a word being put about in more serious circles than previous because wages simply don't support the price levels in spite of banks doing everything they can to ease affordability.

The Bank of England is making things harder for BTL landlords in particular in terms of lending parameters. The Treasury is taxing BTL purchasers more in stamp duty. Tax deductibility is tougher for BTL landlords, so many are looking to get out.

I'm not saying that it will become a one-way bet the other way any time soon, particularly when inwards migration is still in the 300,000s per annum but something has to give.

If interest rates have to rise and they indeed could if we exit the EU, to help finance UK debt and the deficit and trade deficit and capital outflows then we will indeed see 'something else'. Actually the UK economy is in poor enough shape* that if we vote to stay in the EU we could first see a cut in interest rates and easing before future tightening.

IF there were a crash it would ripple out from London to areas where there is still some semblance of value to be had in terms of market value to incomes.

It is indeed strange that the US is a far healthier all-round economy and US incomes are higher than here in the UK but it isn't reflected in real estate values nor could it be at any reasonable exchange rate adjustment from here, with the possible exception of parity but then incomes would be even more skewed.

I'm glad that I don't need to buy right now and I'm happy to rent at a time when we are only giving a 3.5% gross return to our landlord. Comparable rent return percentages should be available throughout much of the West Country. Maybe UK asset prices will become more sensible or realistic in a decade from now, particularly if we go into Japanese mode.

There is a side to this discussion where Londoners in particular are now downshifting TO the West Country as they see fresh highs and retirement and are supporting real estate prices in this overall area but on the whole I don't perceive that prices have done much in the region outside of the big centres such as Bristol and Exeter.

In fact 'investors' are looking at holiday lets as the way to make money as other properties are now very much stuck still or even declining, as residential rents are low as there is no real prosperity in the mainly seasonal tourism and agricultural region outside of the big centres.

*Running a huge budget deficit it is hard to get down without major cuts in services that are often ring-fenced. Running a huge trade deficit. Too reliant on debt-fueled spending. Poor productivity and not enough investment, innovation, training and quality management. Too reliant on real estate prices. Education is often not meeting the needs of employers who then import the labour. Whole economy is too London-centric when London property prices make working there almost unsustainable. Percentage of net-contributors to the 'economy' is becoming smaller and smaller.

Re: Downsizing and Up-pricing.
 

Our house in Canada was the biggest I'd ever lived in, but only in terms of square footage. Upstairs it was a two bedroom bungalow with an open plan living room/den/study/kitchen/dining room area. Downstairs there was an enormous basement with two further bedrooms and a second bathroom.

I do miss the storage space, but not the open plan, which made the house feel much smaller than it really was, or the basement which was creepy and tended to flood. We also have a larger garden than we had in Canada.

Re: Downsizing and Up-pricing.
 

We will downsize to a flat from a 4 bedroom house with a large yard and pool, but to be honest, I am looking forward to it. The two of us certainly don't need all this space, we never use the pool, and the lawn is a pain to mow. Like Pete, we will rent and forgo a car. We have had enough of owning things that require maintenance, and like the idea of not being tied down. We plan on being footloose and fancy free in our old age :lol:

Re: Downsizing and Up-pricing.
 

feelbritish. From what I've seen on estate agents websites, I doubt if it would be worthwhile bringing back any furniture. I'm glad you are adapting, I'm sure we will in time ............ hopefully.

Pistolpete: I was really looking for peoples views on the how they coped with living in smaller accommodation and paying a premium for it. I respect your views on house prices though. We will rent for six months and decide what to do thereafter.

Editha: Re: gardens. We have a 3 acre plot with a two acre private lake. Thoughts of the good life are wearing thin, the only thing I would miss is the privacy.

Perth: Know what you mean about the pool, it's just there, and needs a lot of looking after.

Thanks for the replies.

Re: Downsizing and Up-pricing.
 

The price isn't just for square footage though. It's about where you want to be. Our current house in Birmingham is about half the square footage of the one we had in suburban Los Angeles but I like it much better due to construction, layout and proximity to amenities. The price differential probably isn't as noticeable as yours at around 3/4 of the selling price of the US one.

Re: Downsizing and Up-pricing.
 

Hi Sally :wave:

Ours is extreme.

Our English flat is 700 sq ft. and cost five times as much as our New York house (3,000 sq ft., four bedrooms, five acres of land.)

Wildlife-wise, all we have in our English flat is those giant bathroom spiders that are ubiquitous in the UK. In America we have chipmunks, mice and red squirrels in the house. We had rats for a while, but I was quite strict with them and they're gone.

Re: Downsizing and Up-pricing.
 

Hi Robin!

You extremist lol.

We have two friendly robins in the garden :p

How are your plans working out?

Re: Downsizing and Up-pricing.
 

Hi Sally! Hope all is well for you these days.

On topic: our Richmond Hill house sold last spring for a healthy 4 x what we paid for it in 1993 and we were renting in Newcastle since Sept. We've now moved into a very pleasant 1000 sq ft apartment overlooking the River Tyne (spectacular view over a marina and downriver). Cost only 28% of the proceeds from Canada. :thumb up:

We also still have our 2000 sq ft house and 5000 sq ft yard and garden in Normandie from where I'm posting at the moment so all in all no complaints.

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Hi! Doing well, thanks.

Is that the Quayside area? It all sounds great, with the best of both worlds :drinkingwine:

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A bit further east than the Ouseburn and the old Spillers Wharf. The flats on the Quayside near the Millennium Bridge are very small and quite expensive for what you get.

It sounds like you know Newcastle quite well .... you'd be welcome to visit if we're around when you're there next.

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Our robins (American style) are driving us crazy this year. They are nesting all over the garden, including a couple of pairs in the barn which makes it harder to get out the riding mower etc. I was in Norfolk all winter and enjoyed seeing the robins (English style.)

As for plans - Not bad. I'm back & forth, four months in Norfolk, two months or so in New York. My wife absolutely can't leave here, what with quilt group on Saturdays and band on Fridays! I'm flying back to Heathrow in ten days time, spending the summer in England. This winter, we're hoping to visit her cousin down in Sarasota, FL. My cunning long term plan is to move our U.S. operation down to Florida, but we'll see about that...

Re: Downsizing and Up-pricing.
 

Aha...I do by marriage...actually we were talking about going up there for a weekend sometime soonish - so it would be canny to have a drink like :thumbup: