Smaller or bigger home? Which to choose!

[Louise0923]

We’ve seen two houses we like on the same estate. One is larger and the other smaller, they are the exact same layout, same number of bed rooms (4) and same bathrooms (3). The larger one is my preference, it has the wow factor kitchen and master bedroom. The smaller one is still nice but everything is just smaller! There’s a £35k difference in price, and a £200 a month mortgage difference.

The larger one is definitely top end of our budget, but doable, the smaller is more comfortable. My partner and I are in total disagreement on which to go for.

My argument is if we are paying stamp duty and solicitor fees anyway, why not stretch to another £200 a month, and hopefully, our pay will increase as we go (which it should do).

My partners argument is, we are starting a family and an extra £200 a month would be useful, especially when I go on maternity, and as our pay goes up, spend more on the children and experiences.

However, the large home is also in a nicer position, tucked into a cul-de-sac, with a larger garden and it would mean we don’t have to move again if we outgrew the smaller one.

My partners argument on this, is if we outgrow the smaller one we would probably need more bedrooms, so a larger 4 bed probably won’t be of much use anyway!

Anybody have any ideas around stretching the budget for dream house or keeping it sensible with what partner says is already a dream house (just slightly smaller ha!).

Defo the bigger one, you will love living there and always regret the smaller one, for such a small difference. If you assume salary escalation then you will soon have enough disposable, and of course in terms of equity the more expensive the house the more the equity as its value increases ie 10 percent on 100k is 10k equity, 10 percent on 200k makes you 20.

I think with the increase cost of living we have no idea what’s a good amount of disposable income. My parents would cry at just having that left over a month but they had tiny houses of £250-350 mortgage a month, so it’s a different time, and we don’t know what’s feasible! Childcare wise, we’d hopefully make use of the new free houses but also hope for wage increases.

We did factor in what we could get if one of us went part time, and that’s what we can afford the smaller one on (eg for more time with children or to take care of family), however it’s not my intention or his to go part time!

That would sway me in favour of the smaller house to be honest. I would definitely want the option of going part-time after starting a family.

If the larger one is easily affordable then I would go with that. But don’t underestimate the cost of children ( I see you don’t have any yet). Have a figure in your mind and double it 😂.

Bigger one. Over time that 200 will become smaller in Real terms

Do they both have the same aspect? If one had a south facing garden, and the other north, that would swing it for me!

Have you looked at the costs of nurseries local to you OP? I wouldn't include calculations for any more free hours that already exist, Labour have always been open that they won't commit to the Tory's free childcare plans. So very possible there will be no further expansion of the schemes. Here £800 a month covers 3 days of nursery for my 2 year old and thats inclusive of the funded 15hrs!

I'd for the larger house because it'll be your forever home & you won't have to move again unless circumstances requires you to. Expertise you move, it costs money in legal fees, mortgage fees, and removal costs etc. Buying the larger house now means you only have to do it once & a £35k difference price between the 3 & 4 bed now is minimal. The difference in price in the future will be more if you want to move yo a 4 bed.

But they’re the same number of bedrooms and bathrooms so why would you?! Plus as someone with a wow factor kitchen- they are a beep to clean!!!

The cost of moving again in a few years is so high, it's just throwing money away. If your council tax is the same for both houses I would definitely go for the larger house in a cul de sac.

Go for the bigger one of you can, it might mean you’d have to be frugal in other areas. Do think about childcare fees though - they can be a lot!

Does he know how much equipment a baby comes with? Or toys children collect?

You should really avoid living on a through road. Noisy and can be dangerous.