Should we go for more expensive house?

[Notfinanciallysavvy]

Hi

I have been weighing this up for ages and just thought I would open this up for your views please ...

My dh and I are looking for our first house (we have been renting forever!) We have the opportunity to buy the house we currently rent - it is fine, we are already in so minimal disruption, in a nice village but we wouldn't be able to make much money on it as the ceiling price for these houses are not much more than we would buy for. That said, it doesn't need much doing to it really and our mortgage payments would be low so we could still be saving quite a lot with a view to moving in a few years time.

Or, we could stretch ourselves a bit and use the money we would be putting aside as savings into the 'mortgage pot' and try and get a deal on a bigger house - where we would stay for the next 10 years or so.

I can see pros and cons for both and just can't decide. One part of me thinks we should so with the "safe" option - as who knows what will happen in the future and this house is a comfortable bet but the other part of me thinks we should try and make the most of dropping prices and put in cheeky offers in case anyone is desperate to sell ...

WWYD?? You might convince me one way or the other ...

Thanks :)

Interest rates are expected to rise

Thanks for the reply.

We are thinking of getting a 5 year fixed rate mortgage ... does that change things?

Moving house is expensive and just dead money, which always sways me towards the house that I'd be happy to live in the longest.

The other alternative is to stay where we are (renting) and save more to buy a bigger house next year (or some time in between when there is more on the market)....

Stay put and save!

moving house is a PITA

I'd put it off for as long as possible.

How much to you expect your life to change in the next ten years (kids etc)? Do you know what you'll need in ten years' time? It would be a shame to stretch yourselves, then find it still isn't enough to meet your long-term needs.

Having said that, house buying/moving is very expensive, so don't be too "short-term" about it.

We have 1 dc and might have 1 more. DH will most probably (long term contract) work in the same place although I will probably have to change jobs when dc go to school.

All of the places we are looking at are with the view that our dc will go to school there forever if possible.

My dc is currently 2 so I am keen to 'be in somewhere' before he ges to school. We still have a few years so maybe it is worth holding off. There is no pressure to move (except from a desire to own somewhere once and for all!)

How secure are your jobs?

By the way, I really appreciate you all taking time out to discuss this with me.

I am a lurker and have only just plucked up the courage to ask a question. I really should add more in future too ... :)

We are reasonably happy that they are secure. My dh has a 3 year contract so as long as his compnay is going he has a job. No guarantees of course ...

I only work p/t and mine is fairly secure but we are basing everything on his salary only.

If you can fix your mortgage - if rates are a concern, I'm not worried at all, they won't rocket.
House prices are going to fall though, negotiate as much as you can 15% at least off the asking price and stretch yourself as much as possible on your first house, all my friend who bought a family home when it just them or as a couple are in great positions now.

Thanks. I think you have convinced me not to buy the one we are in. I would hate to think there are some great bargains out there and we missed out. We missed out not buying years ago - I would be gutted if we missed a good opportunity now!

Thanks again