You might have noticed the Penhallow Hotel fire at Newquay this weekend.
This is right opposite the "famous" Island on Towan Beach, Newquay.
Home of Lord and Lady Long.

So, did the wealthy do well out of HPI?

Well, they've no doubt ploughed a lot of cash into their property since they bought it in June 2001.
But how has it fared since?

6 years since it was bought - and it's for sale.
Actually, it's been for sale for months. Here's a link to a newspaper article in September 2006 where they talk of selling it http://www.telegraph.co.uk/news/main.jhtml.../02/nisle02.xml

June 2001 - bought at £685,000 http://www.mouseprice.com/Search_Property_...reet=&Town=

Sept 2006 - for sale at £750,000 http://www.telegraph.co.uk/news/main.jhtml.../02/nisle02.xml

Aug 2007 - still for sale. But look. It's now OIEO £1million http://www.propertyfinder.com/cgi-bin/rsea...p;tm=1182339352

So, if it doesn't sell, it must be priced wrong ... so bung on 33%

If it sold at £750k, it would not have increased much in 6 years. Just £65k
If it sells at £1million, it would have increased by £315k. 46% in 6 years, not as good as many/most in this area I suspect.

It will be an interesting one to watch. Wonder if the price will go up or down next. They pretty much "have" to sell as per the article where Lady Long points out that at 78 her husband will soon find it very difficult to cross the bridge and get off the island.

P.S. It's not officially allowed to be called an Island any more... some EU thing!

The fire was on the news for the past few days. I hope they can claim their insurance. It was a good hotel.

Judging from this: Property for sale in Newquay, house prices havent been affected!!! Time frame only two days!

I drew attention recently to a small farm estate STENHILL, in North Cornwall last year £1.3 million now sold for £725,000.
North Cornwall has about 10% second homes and lots of houses have been on the market for ages. The average working wage (ie Average local wage less professionals is half the National Average wage. Houses are £216,000 average). This is the area that will start and end the house price crash, same as it did in 1989 -1994.
Well spotted Towan Island for sale.
If there is a bookie taking bets on HPC. I would place real money on 5 year fall of 50%, but would have to have a trade-off on Inflation, because that might be the way out yet again. In 1973-74. Stock Market dropped by 73%. House Prices by 33% inflation was 19% then 25%. Governments playing about with figures, like Mortgages are excluded from Cost of Living Index do not pull the wool over anyones eyes. 90% of the public earn less than the average wage. The average wage is slightly less than the unearned income in an average household (Dividends and Pensions being greater) This only comes about because the bottom quartile pay a higher proportion of tax than the top quartile and many are in throws of drowning in debt.

Wondered what happened with this.
TR7 1EA

Not sold: http://www.nethouseprices.com/index.php?co...mp;pcsaCode=TR7

Not on the market either.

The strange thing is, there are masses of new build flats now up for sale in Newquay with price tags in the £750k to £1.4million range.... yet this unusual property never sold.

Somehow, I don't see any of the pricey flats selling.....