Buy home we can afford or borrow money for forever home

[PeachOP]

Hi everyone, I’m looking for some advice. My partner and I are currently renting, but we’re now looking to buy our first home.
We’ve worked hard to save a 10% deposit, and during that time, we’ve had one child and are now expecting another. Initially, we set a budget, but after viewing houses in that range, we feel they’re a bit small. While they’re much better than where we live now, I worry they won’t suit us as our children grow, meaning we’d need to move or extend in a few years.
If we stretch our budget, we could buy a forever home, but it would mean borrowing from my parents and paying them back within a year. This is achievable but would mean another year of tight finances, and I’m honestly tired of scraping by after years of saving.
Would you go for the bigger house and tough it out for another year, or buy the smaller house and plan to move in 5 years

I think I’d go for the bigger house, but probably take out a loan to pay back the parents once the mortgage has gone through. It doesn’t feel nice owing to family, particularly if it’s stretching you. It would give you some space to pay back over a longer term.

I'd go bigger & postpone the repayment until I was back at work if possible

I’d stay in rented for your maternity leave, save a bit more if you can, then re-evaluate after. But with the costs of moving/stamp duty etc. Depending on your wage growth potential and age I’d try and stretch for the bigger house straight off. I massively regret not doing so.

I would go bigger house but ONLY if it doesn't stretch your finances too thin.

Me and DH bought a 2 bed first home and then found we had to move once our family grew, and moving in itself is very expensive and stressful. If you can make it work going for your forever home now then I'd say do it.

Bigger house

Scrimp for a bit longer but save on 2 lots of stamp duty.