Move to a cheap area... Is this life's secret?

[Pestopastamad]

I currently live in a 'nice' area in the north, which by northern standards is relatively expensive (most expensive postcode in our city).
My partner and I earn an okay combined salary, but a huge proportion of this goes on the house, it's still 'within our means' on paper, though. We both work full-time and haven't got a mortgage yet, we rent, but are looking to buy around where we live now in the next 12 months.

Lately, I've been feeling a bit fed up with our work-life balance, and weirdly I've noticed I feel very envious of the people I see at work who don't work/work part-time/ earn less than us but seem to still manage to own a house, buy what they like, drive nice cars and go on holidays.
It's made me wonder if I'm doing it all wrong and I'm questioning my decision to buy in an expensive area, when I could buy in a less desirable area for a fraction of the price and have a lot of money left at the end of the month.
I can't stop fantasising about a life of working part time , eating out constantly and travelling where I want when I want, because the mortgage would be so cheap.

Is there such a thing is a balance, finding a decent house in a 'middle ground' area, and having lots of disposable income left? Or is it a fantasy and would I just hate not living where I do now? All of my family (and most friends) live in the same postcode as we do now, and I am questioning my motives for wanting to stay around here - keeping up appearances/ what will the family think!! I wonder if this is common for those my my age group (mid to late 20's) because of the ridiculous cost of housing!

Please share your opinions and experiences...

We took the decision to buy out of town in a local village because we could get a nicer house for less money. It was fine for a few years but eventually we got weary with driving in and out of town for work, in and out again to the supermarket, in and out again to visit family and friends. Paying £10 into town for a taxi just to go for a drink with friends and £10 back again. We became isolated and fed up.

We have just moved into a smaller and older house in town and I couldn't be happier. The cost of living has actually decreased a bit - we can easily manage on 1 car now, petrol costs have more than halved, no need for taxis anymore. Family are walking distance and can help with childcare - do not underestimate how much money this could save you if you plan to have children. Moving away was a false economy really.

So yes I think you can be perfectly happy in a less fancy house, in a less upmarket part of town. But there are costs to moving away from your family and your work.

Thanks for the replies, it's really interesting to hear different opinions on this.
We are in a well connected city, and so no matter where we live we are never more than 20minutes or so from the city centre, which is where we eat/go out anyway.
Schools and catchment areas are also not relevant to us, for reasons I won't go into.

What I'm unsure about is finding the balance, and the right area, because I have always lived where I do now. My DP has had the opposite experience growing up and so would love almost anywhere. I have an idea where I want to move to, and by all accounts/late night walks and drive around there it seems okay. It would be a semi-detached house and the area is still mostly bought but would be saving us 50k and about £300 a month (from estimated mortgage cost, not our rent), and would be a bigger house.

It depends on what you mean by cheaper. How cheap? Are you talking rough cheap, or slightly less expensive than where you are now.

Be mindful that people living in "cheap areas", buying nice cars, going on holidays, buying stuff, eating out are almost always doing it on credit. Everybodies biggest expense is the roof over their heads. Whether it's rent or mortgage it is usually the biggest expense.

You could probably find a still nice area just not in the most expensive postcode. But don't look at others wishing you had what they had, because the reality is you only know what they're willing to show you.

The grass is always greener on the other side. I’m on the other side and crave a bigger/nicer house so much.

You can get a handsome five bed Victorian terrace round us for £100k. Got butchers and bakers and so on - plenty of jobs, beautiful countryside, no crime, 20 mins into the centre of a big city. Will I tell you the name? Will I buggery! I'm still renting!

What is the rent like and house prices like for the area (out of interest/noesyness - I’m in the south so have no idea of prices)

We are looking to move to a cheaper area but more expensive house so we get more for our money. The area is still ‘nice’ though.
I say move if it’s right for you

@lojoh where do you live!! I want a 5 bed for £100k

Everybodies biggest expense is the roof over their heads

No its not. Our mortgage is similar to what we spend on food and about half what we spend on holidays each year.

We live in a cheap, perfectly nice but less fashionable area. Traffic and motorway access, which is important to us, is far better than the more desirable side of the city.

Main downside is that the bus service to the city isn't great and we don't really have nice eating out options in walking distance, but we're well placed for the park and ride to the city.

We don't have anything on credit either. We just haven’t fallen into the trap of feeling that we needed to spend as much as possible on the roof over our heads.

It *would be *a semi-detached house and the area is still mostly bought but would be saving us 50k and about £300 a month (from estimated mortgage cost, not our rent), and would be a bigger house.

Op- for the sake of £300 pm, I would probably stay in the more expensive area closer to family and friends. Between you and dh, I’m sure you’ll get pay rises over the next few years that will make up the difference whilst you’ll be in the house for many years to come. Obviously, I don’t know your exact financial position or what % £300 is from your disposable income.

We worked our way up. We've gone from a run down tiny house in a not so nice area to a big house (also run down) in a really nice area. Doing the houses up has enabled us to learn a lot and add value without a large mortgage or any family help.

Just thought I'd mention it as that may also be an option for you?

I’m all about location personally. I’d give up space for location every day of the week. But that’s personal choice. It’s not everybody’s.

Schools and catchment areas are also not relevant to us, for reasons I won't go into.

School catchments can add a lot to certain areas - so if this isn't a factor then yes probably.

I'd think about the communtes you'll have to make and what amenities you do need then go and have a look at different areas you can afford - see what you get for your money.

We moved to a "rougher" area of town, which saved us the stress of trying to buy in the trendy south of town, and about £400K on a 4 bed edwardian terrace (I shit you not). It is the most community-focussed neighbourhood I have ever lived in (I know all my neighbours, a street whatsapp group, regular get togethers & an annual street party), it's leafy, green, and well connected to the rest of town. Yes there are some rough pubs and a bit of crime, but no worse than the rest of town, including those trendy southern suburns. All our friends live a 15-20 min drive away, but driving to see them or meeting in the city centre isn't a big deal. It's the best decision we ever made.

We put all our money into a great house in a great part of town. We were skint for about 8 years. Managed without a car when one would have been very useful. Didn't go on holiday for years. Etc. But slowly it became a lot more manageable. Our mortgage payments stayed the same as our salaries went up. So eventually we had the nice house and the disposable income. Eventually, we'll downsize and have a bigger nest egg than if we'd bought somewhere less expensive. I wouldn't do that renting, though. It was only worth it because it was an investment in the future rather than just spending on the present.

I deliberately made choice to live in cheaper areas to have more cash available. I moved from south east to Glasgow 17 years ago and have never looked back. I'm in one of the cheapest areas in Glasgow in a detached sandstone 4 bedroom Victorian villa with period features and high ceilings, which cost me about what a studio flat would cost in Reading.

It's certainly got a reputation for being rough, but in reality it's not anymore. There's not the gang issues there used to be, alcohol is more expensive now and there is less drinking and drug taking. The biggest factor I think is that kids are all inside gaming or on social media rather hanging around outside and getting into trouble (yes that is a generalisation, I know). 7 minutes on the train and I am bang in the city centre.

I don't regret it one bit - BUT! ...I don't have children and don't have to consider schools for them. I am also thick skinned about attitudes of others to where I live - I know what people think of the area and get eyebrows raised when I say where I am but it doesn't bother me.

It would have made sense to rent in the cheapest area and save to buy in the more expensive one . You’ve probably spend thousands on rent which you could have saved towards your own property .
The most expensive isn’t necessarily the best and the cheapest isn’t always the worst .

@heroineinahalfshell I can definitely relate to that. We've lucked out in our new area but there's definitely a lot more hostility here from neighbours than there was in our old area. There's a lot more territorial behaviour over things like fences... boundaries... parking etc.

When we lived in a 'not so nice' area we had lovely neighbours both sides and no one ever saw disagreements over things as daft as fences. However... some joy riding kids did crash a stolen car into the front of our next door neighbour's house... so it was swings and roundabouts.

We wouldn't have moved if it wasn't for school catchments and wanting to start a family though.

I'm also in a northern city in one of the more desirable areas. (Intrigued where you are.... )
We bought here 15 years ago, large 6 bed Victorian semi. It's a money pit. It's nice but in reality we've not had the disposable income I'd have liked as the house costs so much to run. The plus side is that the kids are now at uni and we can sell up and buy somewhere smaller & mortgage free due to the equity in it. That may be in a less desirable area as all the desirable postcodes are so because of the schools which we don't need,so we'd be insane to buy in catchment. For a city though, it's hard to find 'that' area that's still nice but not £££.
Don't underestimate how much more a larger house costs you to run. Especially an old one.
It's a difficult one!

It would be a semi-detached house and the area is still mostly bought but would be saving us 50k and about £300 a month (from estimated mortgage cost, not our rent), and would be a bigger house.

£300 a month extra would be great but it's definitely not going to pay for the 'life of working part time , eating out constantly and travelling where I want when I want' that you say you're imagining in the OP.

We live on the edge of the rougher side of town. I have a 4 bed victorian mid terrace on a quiet road with lovely friendly neighbours. The 'estate' is a 10 minute walk away but we're still on the edge of a deprived area. However 10 mins the other way is the start of a hugely desirable area where our house would've cost 100k more. We are honestly happy here and we prefer the extra cash and security cheaper mortgage affords us.

Why not buy a smaller house in the nice area?

Stay in the area where you feel comfortable and safe It will cost you but in a few years, things will have evened out and you'll be better off. That's just how it goes.

I know it seems hard at the moment but you never know what's around the corner, one or both of you may be promoted or find another job which you like & pays more.

Good luck.

We live on the undesirable edge (30 mins away) from a large city, and have a much larger house ( think 5 bed, 2 studies, playroom with land vs 3 bed semi for more money) with cheaper mortgage than the other side by a very large factor.
However, it isn’t cheap because of crime or rough areas, just less pretty countryside, poorer schools and less fashionable, i think that makes a difference as to why we chose it.

I too live in one of the most expensive areas in the NW (I wonder if you live in the same place as me?) and sometimes think I’d be happier living in a smaller house or worse area and having more disposable income. But then when I go back and visit friends and family in the area I grew up in (about 25 mins drive away) I quickly change my mind!
Where I am now has low crime rates, nice towns nearby, lovely green spaces, national trust on my doorstep and great schools. It’s not worth it for the sake of having a few extra holidays and material things.
My dSis lives in a nice town in the Peak District and bought her house very cheaply but that’s not without compromises. The town is ok And has nice green spaces but it’s not a patch on where I live and it’s quite remote. She couldn’t get to work last year for several days when it snowed and the trains were cancelled. You have to weigh it all up.

I’ve lived in desirable roads in lovely towns, also fifteen century cottage, run of the mill 3 bed semi in an ok normal road, council flat in the “rough” end of a desirable village, the best location of a town just outside London.

And I know what I would rather. The council flat. It was easy to look after, cheap to run in a lovely friendly neighbourhood where everyone says “hello” when you go for a walk.

I had money to spend and life was very pleasant indeed. But I’m not materialistic so that probably helps.