Would it be crazy to rent a bigger house for 10yrs then downsize back to my house

[Indecisivelurcher]

I really like my house. It's just a 3 bed mid terrace ex council house. Off road parking. Small garden. No garage. But we've knocked through, done up the kitchen and bathroom. It's got a bit of personality as it's 1949 not a new build. It's in a good location to walk to shops, pubs, restaurants and go for varied dog walks. If we were to stay here, we could easily clear the mortgage, retire early, and be pretty comfortable. But, we are starting to think we may need to move one day. The third bedroom is very small. To fit a full size single bed we'll need to get one built over stair boxing. I can imagine when youngest dc is a teen, it'll be a squeeze. I also now increasingly work from home. My desk is in the living room, which is OK as I finish at 3pm and pick kids up. But this won't work long term, when the kids can come home from school themselves and I can up my hours, I will need to be out of the way. We have no garage, so already bikes and things are becoming an issue. BUT later in life when the kids leave home, this house would once again be great.

What I'm wondering about is, renting our house out and renting somewhere bigger for 10 or 20yrs. Then coming back to our house in the future. Would that be mad?

Bigger houses here are often new build estates which I don't like that much, and cost c£500k which would be a huge stretch. My house might be worth £230k.

Due to work relocation, we rent our house out and live in rented ourselves. We've never had nightmare tenants, but i still dislike being a landlord. I find it stressful when the tenants call with problems which need me to organise tradespeople, who are sometimes unreliable. There's also been a time when a tenant couldn't pay rent for a couple of months.
You also need to consider that you would be taxed on the rental income.
I would sell up and move on. You can always downsize back to a house in the same location in the future when you are ready.

Could the kids share a room?

Bunkbeds?

You go into the office more? Five yourself down space

I have done this and recently moved back. I was lucky with tenants and my mortgage being covered with no issues, but still the house was neglected

I've spent upwards of £40k on renovations and do feel like the house has lost its sparkle!

Upside was we had more space for our kids when they were younger and they had the opportunity to attend better schools.

It won't be anything like your own place when you moved back in after ten years. And all the neighbours will have changed, the whole neighbourhood too, maybe.

We're in different circumstances but rent our property out and live in rented accommodation. The property we own is managed by a letting agent so although we pay them a fee, being a landlord really hasn't been a stressful experience. We don't spend the money we get for the rent, other than to pay the mortgage, so we always have a pot when the inevitable repairs need to happen - but as I see it we would have been paying for the maintenance/upkeep of the house if we'd been living there.

Being a tenant on the other hand is pretty frustrating a lot of the time!

Tax on rent and insurance would need to be considered

I grew up in a 1950s council house, although it was a semi. My sister was older so she got the bigger room but I loved the box room! It was my little haven. I think, unless you're having 3 kids, it's perfectly manageable.

In your position I'd probably spend just a bit more for a bit more space and call that your forever home.

It sounds like an extra £50k might get you a larger garden space, larger bedroom or garage. The bit extra that you need and will still be useful when your older.

We privately rent a large 3-bed in a village location. It is worth far more than we would ever be afford to buy. Pay £1150 p/m, house worth in excess of £400k.

Why don't you just go to a coworking space?

I don't need to go to a coworking space, I can go to my office. But not many people do, so I don't either! But yeah I'll do that more when the kids are able to get themselves to and from school.

rental income is taxable
you get an allowance but are taxed if higher rate (bit more complicated than that)

I suggest you research all the costs involved in becoming a landlord including tax on rental income, plus the costs of renting, consider the alternatives (better storage solutions, working from your actual office) and consider which works better for you.