Wwyd buy expensive house to grow into or house size needed now(69 Posts)
So we have recently moved back to our home area to be near family with our first child and are looking at buying a home.
One house is 5 bedrooms (1 very small currently used as a laundry room) 3 reception, 3 bathroom, detached on a small but decent land size. Has a river out back but has never known to flood and would have to rise a large height to flood house. Cost 225,000. Needs some decorating to my taste but liveable in. Along a country road. Over 30 years mortgage would be around £650
Other house is a new build 3 bed semi detached. 1 reception and 3 bathroom. Small enclosed garden. 130. Turnkey so can be decorated to my taste, and solar panels for hot water etc. Development of 20 houses. In countryside beside my parents and family. Over 15 years mortgage would be £460.
We are torn should we buy our forever home now (ie house 1) but not have lots of disposable income. Or should we buy house 2 and have spare cash to do as we want. However we may quickly outgrow house 2 so would be looking at moving again in next few years. Alternatively we may never grow into house 1 if we are not lucky enough to have anymore children.
Thinking is if we buy house 2 we don't sell it but when we need to move on we can rent it out. We would hope to save enough money with the lower rent to put down another deposit.
We have just sold a house we were paying 860 mortgage on so would hope to pretend we are still paying that but save the extra.
If you have got this far, make yourself a well deserved brew!!! Any questions to help make your decision ask away. My question is wwyd! We are finding it so difficult to decide.
Oh and another factor is that if Brexit (not looking to discuss it rather than it's a bit of an unknown) does happen to push up interest rates, we would still be able to comfortably afford house 2 but may struggle with house 1 if they were to rise significantly
It depends on what house prices are like in your area. Are they static? If so, go for the second house. If they've always risen well, go for the first house.
We're in a very similar position.... leaning towards the cheaper house which needs less work because having just spent the last 4 years doing up our previous house we want the time and the money to spend with each other and our new baby girl.... we know we won't make any money on it but now time is more important to us.
They are very static and can't see it moving anytime soon
I have friends mortgaged up to their eyeballs. Me and Dh aren't.
We pay an affordable amount each month, and providing we stay put (not sure whether we will or not) we should have it all paid off in 18 years putting us in our 40s.
We have a great life style, not extravagant but comfy.
Ultimately it's your choice but with my friends I always think yes you have a huge expensive house but you can't afford to live. You've mentioned interest rates, its very possible they will go up, more dc adds costs, if one of you loses job, unforeseen bills I.e cars, boilers etc.
We bought 2 bed flat, moved when started ttc. Bought 3 bed house. Finally had DS and bought forever home. 4 bed, 3 bathroom with intention to have 1 or 2 more DC. Infertile. No to IVF and adoption. Now have a house too big for us but still with all dream features of forever home. Can't imagine downsizing even though we have way too much space and I cannot keep up with the housework.
If I could do over, I would chose a larger 3 bed in forever location that would be more affordable. I pay for a bigger mortgage plus cleaner just to cope.
One thing to consider is that moving house is itself very expensive. Moving fees, legal fees, estate agent fees, decorating to sell, stamp duties etc.
Last time we moved we moved into the equivalent of your no 1 house, bigger than we currently need but enough room to house our parents if we need to in the future.
Mehfruittea, I think that is part of our worry as we struggled to conceive our lg so we really don't know about how lucky we will be with more
Lauglin yes that is part of our reasoning as well, the expensive of moving again in potentially 3/4 years. Also we do have regular visitors. However I can't imagine my parents ever leaving their home. House 2 is a 10 min walk from them so would be ideal that way.
Lochan sorry spelt your name wrong (memory is terrible, hasn't been used on mat leave)
A 5 bed house for £225,000
Fucking London and it's extreme prices goddamn my life
Go for the amazing one - my parents did and I had the BEST childhood in it .
Just seen the lack of disposable income part - go house 2 it also sounds great
5 beds, 3 reception rooms etc. sounds insanely big, unless you're planning on having a church load of kids.
I think going for the second one is wiser if prices are stagnant. There's no guarantee you'll end up with as many children as you intend anyway.
I wouldn't buy a house next to a river with a young family, even securely fenced it's a risk you simply don't need. I think it may also put people off if you ever want to sell. Also large gardens take a lot of maintenance, fine when children are older but you'll be busy enough as it is. So house 2 for me, or keep searching.
As the larger mortgage is considerably less than what you are paying now, then I'd go for the larger house, without a doubt.
It's lovely to have more room as a family.
Moving house is very, very stressful. It is also expensive. I'd limit the number of times I needed to do it, if I could afford the bigger jump in the first place.
I know someotherfuckers I've just moved back to my home from the south west and the prices don't compare. Ridiculous what we can get for our money. On downside the houses don't sell. House 1 has been on market for over a year. People just don't have that sort of income where I'm from. So that is another worry - if we needed to sell ,house 1 it may take years to sell. House 2 is more sellable as people can afford it.
Thank you everyone - this is really helping! We have been debating it for days going back and forth between them both. We view both of them again tomorrow so I will keep you all updated
Am I allowed to ask which part of the country you have moved to? Those prices are amazing.
I would consider the interest rates and property market then. If house 1 has been on the market for over a year already, and interest rates are relatively low, it will be a nightmare to sell if you find yourself unable to manage the repayments once rates increase.
Any other houses on the market?
Selling a second hand new build can be tricky because they go up against new new builds with all their incentives, iyswim. Though I appreciate you could have the rental option. Are they selling the new build freehold? Beware the dodgy ground rent thing that is in the news at the moment!
The big house seems great, but could be very expensive to run: heating, maintenance, what is the council tax? And the river might be sending it's insurance levels sky high.
Try and view them through local eyes and not as the bargains they are compared to the area you have just sold in.
I would buy house 2
The location sounds better, the river would worry me, it is more affordable
But the deciding factor for me would be who knows what will happen in 4-5 years. Another bigger house may come along that is better than house 1. Or you may not need a bigger house
I would actually buy house 2 but pay extra on my mortgage so pay the same as if I had bought house 1 to get ahead financially
Helend probably outing myself but Northern Ireland.
Are they the only two options at the moment? Five bedrooms does seem like a huge amount for a great expense for the next 30 years.
I was going to say house one until you said about parents near house two and only one child. Not sure now
House two sounds plenty big enough even with three kids, and mortgage free in 15y is great. Id go for that one.
Ooh yes - check how much the river house would cost to insure and look at flood maps.
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