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Original poster

Would you / did you buy a bigger house if you didn't "need" one?

70 replies

PineappleChutney · 13/08/2019 17:01

DH and I are in our mid/late 30s, one DC aged 7, no more planned, and are lucky enough to own our home - combination of decent paying jobs and being cheap as hell. Bought late 20s (we're in the North where prices are lower) and paid off mortgage a couple of years ago. It's a standard 3-bed semi (2 proper bedrooms so one for us and one for DD, with the box room used as a study), very small garden. Kitchen is tiny but functional. We don't find it cramped day to day but have no spare space e.g. I'd like a food processor but we literally have no space to keep it.

We are in a position where we could afford a larger / nicer house if we take on a mortgage again - realistically quite a hefty one to make it worth our while. Everyone around us seems to be doing this and I worry that I am somehow missing the boat, as house prices in our area have steadily climbed. We are already being priced out of houses that we could have afforded if we'd bought 2-3 years ago iyswim. Money that would be spent on a mortgage is just going into savings and I worry that it will be eroded over time by inflation and so on, rather than perhaps holding value in a house. A new house could be closer to DD's school and friends, give us more breathing space, a bigger garden for her to play in etc - but we don't "need" one.

WWYD? Any thoughts appreciated!

OP posts:
ChoudeBruxelles · 13/08/2019 18:07

Yes. We live in a large 4 bed house. Just the three of us. Intention was that we wanted somewhere large enough that ds could stay at home when older and save for a deposit of his own (if he wants to) without us being on top of each other.

Longer term well downsize and release equity. Better than interest well get on putting money in savings

ToLiveInPeace · 13/08/2019 19:50

My instinctive answer is no, because I invest my spare cash for early retirement and save up to travel. My mortgage is deliberately quite a bit less than banks were willing to lend. However, it depends on your own priorities and also how difficult you find the current house versus how much a bigger mortgage might reduce other aspects of your standard of living.

Original poster
PineappleChutney · 13/08/2019 21:00

Thanks again everyone - have read each reply carefully and hugely appreciate it.

ToLiveInPeace that's been my intention so far, to invest spare cash for early retirement... Still conflicted about whether to stay with this approach or invest in a house instead... Can I ask how you do it? Seems there aren't a lot of safe index-linked options after filling up an ISA.

OP posts:
Bluntness100 · 13/08/2019 21:02

You're still investing for your retirement, you're just putting your money in bricks and mortar,

And unless you go high risk you will not make the same money as you do on property. History shows us this.

IdblowJonSnow · 13/08/2019 21:06

Yes, I would go for a bigger house in your position. It's lovely to be mortgage free (I imagine!) but if you can afford it why scrimp?
Also as your daughter grows up she'll accumulate more stuff probably!
You can always downsize again one day!

EdtheBear · 13/08/2019 21:58

In that position I'd go for a bigger house, but I wouldn't go wildly big.

BackforGood · 13/08/2019 22:01

Another who would move, in your position.
You are both really young. You are 'making do' or 'coping' in your house, rather than enjoying living there. You've got another 40years before you'll be likely to want to downsize / buy a retirement home. It seems silly to not enjoy your home for all those years when you financially can afford it.

BlueSkiesLies · 13/08/2019 22:07

Yeah I would. You have lots of years with DD at home ahead of you.

Ragwort · 13/08/2019 22:14

Totally depends on how much the extra mortgage will ‘stretch’ you. We live in a much bigger house than we ‘need’ (5 bedrooms for 3 of us) but we moved from a much more expensive part of the country and didn’t need a mortgage. When we were younger we lived by the ‘rule’ that we could always afford the mortgage if just one of us was in work (but appreciate that’s not very realistic these days).

Rumours0fAHurricane · 13/08/2019 22:56

Yes, we've just bought a detached 4 bed with a double garage and gardens in a quieter village location. We currently have a 3 bed town house , small decking out the back, tandem parking and live on a main road. Lovely area though and we are only going a mile up the road

We wanted more space, an extra bedroom (eldest at uni but home a fair bit and youngest only 12) , a large kitchen and a garden. We also want a double garage. Oh and something newer. Our current house is 17 years old and our new one is 5.

Nix32 · 13/08/2019 23:18

No, I wouldn't. We could be in the position to do so but it would mean doubling our (tiny) mortgage and I don't want to commit to the increased monthly payments.

We've had to weather some fairly life changing set backs and as a result down sized to the home we have now. I love the feeling of security that brings, and stretching ourselves financially would make me very nervous.

Our savings are invested with a fund, through a financial advisor, and are working for us.

ginyogarepeat · 13/08/2019 23:38

We did, and I love it. Only one DC and went from average sized 3 bed semi to 5 bed detached in the countryside. Yeah we'll not be mortgage free as soon as I'd like but we're not stretched to the point of having to cut back elsewhere.
I do feel very lucky to have this house and am a bit embarrassed to admit I love the space, bigger garden etc when there are only 3 of us, but it's the truth. Cleaning it is a pain though Grin!

VivaLeBeaver · 13/08/2019 23:47

I stayed in a 3 bed semi with 1dc. Mortgage is 6k and will be paid off in a couple of years. We have a lot of disposable income and could afford a bigger house. Haven't moved partly because I can't face packing!

But house is big enough for us. Sometimes I think it would be nice if the spare room was a bit bigger. Kitchen is about 10ft square so big enough. We have an ok size utility with a lot of storage. We have a massive garden. I think if I couldn't store a food processor which I wanted I'd look at moving.

When dd was about 15yo I realised a second sitting room might have been nice for her to have friends over in. We have a kitchen diner but it's quite open plan so she tends to have friends in her bedroom. Some of her friends apparently have a "teenagers sitting room". But it's not essential.

JingsMahBucket · 14/08/2019 03:32

@PineappleChutney can look into extending your house instead? I’d be wary of moving to a bigger mortgage with a possible economic downturn looming.

Isadora2007 · 14/08/2019 03:38

Definitely. You’re living every day in your home now so make it the best you reasonably can. Living space is fab and although I’d love a bigger kitchen I am glad we can have an extra lounge (with good sofa bed) a gym and still have room for a guest room plus our bedrooms- and a conservatory.

PamelaTodd · 14/08/2019 06:02

I’ve recently got rid of a food processor because it was a pain to wash Grin

In your circumstances, I’d be considering how to ring fence money for dd’s education, and investing in your pension.

A house that is future proof is worth thinking about. You can sell, move and downsize in later life, but that’s when your community contacts and neighbors are most important to you.

SheChoseDown · 14/08/2019 06:04

We bought a bigger one. Skipped the small house stage and bought the top of our budget. Moving house is grim. We didn't want to have to do it again soon

BogglesGoggles · 14/08/2019 06:05

Paying into a mortgage on a purely residential property is financially even more stupid than keeping money in savings accounts. Invest your money. But a bigger house if you want it and can afford it but don’t mistake it for an investment.

AuntieMarys · 14/08/2019 06:15

I bought a 4 bed, 3 bathroom house in a good area even though there are just 2 of us. I like my own space.

flowery · 14/08/2019 06:25

”We are already being priced out of houses that we could have afforded if we'd bought 2-3 years ago”

How come? Surely if those houses are going up in value yours is too, therefore your budget available for a purchase increases?

museumsandgalleries666 · 14/08/2019 06:34

Have you thought about extending? Add a Loft room, bigger kitchen with a room and bathroom above? What possibilities does your current house offer?

Waxonwaxoff0 · 14/08/2019 06:37

No, but I don't like big houses anyway - can't be arsed with all the cleaning and I like a cosy feel at home, I hate empty rooms just sitting there doing nothing. I would rather have the extra money for a nicer lifestyle.

Silvercatowner · 14/08/2019 06:38

We did. Not necessary at all, but we like lots of space

So did we. I love it.

Original poster
PineappleChutney · 14/08/2019 06:41

Paying into a mortgage on a purely residential property is financially even more stupid than keeping money in savings accounts. Invest your money. But a bigger house if you want it and can afford it but don’t mistake it for an investment.

Can you explain BogglesGoggles? Genuinely want to know as this is what concerns me. We have maxed out our pension contributions and ISAs, so are stuck as to what to invest our future earnings in safely and with a good return. (Most of parents' money is in index-linked national savings which aren't issued any more). Our own modest house has increased 100K in value (actual sold prices on the street) in the 8 years since we bought it so if I'd taken this view I would have really missed out. I see others who bought more expensive houses 2-3 years ago already having increased value by 100-200K. Of course no one knows what the future holds but the same could be said for savings accounts that aren't 100% guaranteed.

Thanks so much again for all the replies. Aargh, the more I think about it the more conflicted I feel. I am daunted at the prospect of selling and buying again, this time in a chain (our current house was a probate sale and we were FTBs so couldn't have been any easier). And also, although it's small, I really like my house. I feel like I might have given the wrong impression with the food processor Grin Our current house has lots of good points:

  • everything works. We have been so lucky and after renovating when we moved in, we never had to pay for any significant repairs
  • nice neighbours, quiet safe area. It just has a nice feel and we've always felt comfortable here.
  • lovely view from the front of the house (we overlook a really nice walking park so that adds a sense of space)
  • really convenient for local shops and transport links, and for work
  • early 1950s house so apart from kitchen and 3rd bedroom, rooms are spacious with high ceilings etc
  • easy to clean and cheap to run (council tax, bills, gardener etc)
  • mortgage free!

Negatives:

  • bluntly it is out of keeping with other people with our income and this is becoming more apparent as they upgrade and we don't. We probably have the cheapest/smallest house of all DD's school friends (yep, it's that sort of school which is another thread entirely...) though comparable jobs to the parents. This doesn't bother me or DH at all, but I worry that DD might feel embarrassed or that she is missing out as she gets older. (She loves our house currently and doesn't want to move).
  • the fear of missing out financially. This would be the main factor and 90% of the reason for the move
  • yes more space would be nice but this really wouldn't be the main factor. I am a decluttered by nature and love throwing out stuff, so I would just have more space rather than more things Grin

Hope this adds a bit more context....

OP posts:
Bluntness100 · 14/08/2019 06:46

Paying into a mortgage on a purely residential property is financially even more stupid than keeping money in savings accounts. Invest your money. But a bigger house if you want it and can afford it but don’t mistake it for an investment.

I don't understand this, can you explain pleas? I've bought and sold five times, I've made between 15k (Scottish house, low value to start) and 250k on each property, way more than any investment would have brought in, our current property according to our mortgage provider has increase in value by 250k in five years (high value to start) , again more money, way more money than any investment plan could bring in.

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