Which would you prioritise: Moving to a good area, or being mortgage free by 50

[CornerOfTheSky]

We currently live in a run down area. Lots of crime, the general area is pretty unloved, and the secondary schools are rough. That's on paper anyway, in actuality, we've found it an OK place to live so far, but we don't have teens yet.

For the longest time, our plan has been to move when the kids reach secondary school age, as we'd rather raise teens in a place where they can have more freedom and less worries about crime, etc. It would be better education-wise, too.

House-wise, we'd gain a little more space by moving. But to move to a 'naice' area (as mumsnet likes to say), we are looking at at the next price bracket up from where we are - it's a difference of around £100k for the same type of house we are in now. There are no cheaper options in between without moving very far away, which we are not prepared to do.

Staying put, we'd be mortgage free by 50. Moving would mean we'd likely be paying off a mortgage until closer to 70. The better financial decision is to stay put, but our hearts tell us moving is the right thing. What would you prioritise in this situation?

I’m no property expert but I can see an argument that London house prices aren’t actually going to continue to rise in the short to medium, potentially even long term as Coif has shown us, working in the capital is no longer the be all and end all

I think the highest rises will be in areas away from the hustle and bustle as people no longer need to put up with that in order to work in a city centre

^ coif - Covid

London property values aren’t doing so well anymore. Covid has kicked off a reverse migration of urbanites to rural areas as the % people WFH looks to be staying double what it was before lockdown and continuing to rise. Demand for city properties when you don’t have to commute at all, is naturally decreasing. Before Covid, the migration pattern was to go from rural to city to get the good jobs...jobs that can now be done from anywhere. They’re already seeing this affecting London with home prices staying flat versus rest of U.K. seeing 4 year record high in home prices. Why do you think the U.K. gov declared a stamp duty holiday? It was to artificially boost faltering demand, especially in London.
www.theweek.co.uk/london-house-prices

Only read page 1 but as pp said, it depends how bad your area is.
I've been to some places that are very samey, rough and very dense, road after road, perhaps a large estate... Seems endless.
But some places can have pockets of rough and pockets of uber rich.

We are in place where one end of the road has million pound houses, the other had a bail hostel type place we are in the middle.

If it was densely bad I'd move, definitely. If it was mix maybe stay.
Re peer group I'm sure that's true but people still hang out with like with like.

Definitely move. Though with how house sales are going in London I’d get on with it.

Also renting to get in catchment increasingly being outlawed so check carefully the admissions policy of the local borough.

Mive

I would move. We are fixated on being mortgage free in this country which I understand but life is short. You need to be somewhere you feel safe and happy

Hi OP I know you say it’s not, but there are other areas than Hertfordshire I would look at. If you are anywhere near Tottenham or a similar borough I would say 100% move.
I grew up in a North London Borough. When I was at Secondary School it wasn’t too bad. Some rough areas and rough people but ok. By the time my brother went to the same school as I left it, it had got worse. More rough areas and rough people. He was mugged for his bike and the kids that did it were later arrested for stabbing a 15 year old to death...
I’ve moved since but will be moving slightly further out to buy. Partly because I’m priced out of London, but also because I don’t want to have kids around here.

With the additional detail, I would definitely move.
As you have now said, it will be paid by 65 even with no changes in circumstance. Obviously I don't know what jobs you are in but obviously not a NMW job if you can possibly afford to increase your mortgage by £100K, so it sounds possible, over that time you will both be able to get promotions and pay rises. There might be bonuses.As someone else said, obviously we don't know your circumstances, but, it is also possible you might have an inheritance before the time you get to 65. With 4 dc, and the option to move in your circumstances, I definitely would.
Don't get me wrong, having no mortgage left to pay is a lovely feeling, but, although this seems massive now, when you look back in 15 years time, you won't regret the move, and you'll have long forgotten the fear you feel now.

Living in an area where I feel safe, happy and part of the community, no question.

and by 50, you might be mortgage free, but in a house in a shit area that could be hard to sell.
I imagine that the market value of the better area would increase more., unless the area is seriously overpriced.

Stay and be part of the regeneration of your neighborhood.

I'd move.

You'll probably still be working til nearly 70 anyway

Move! Quality of life, better schools for your children. Mortgage rates are low. Get a long term fixed rate. Good luck!

Move but the voting is confusing.

Move. Enjoy life in a nicer area. Give your kids the best chance you can. Downsize in your sixties if you have too, there’s no rule that says you have to stay there forever.

Do not underestimate the value of getting a mortgage paid off. I wonder how many of those saying move, pay the mortgage off at 65, etc, are actually anywhere near 50? Are they just assuming they will continue in their jobs, or better, until that age? The majority of people in their 50s I know - either them or their OH - lost their jobs, were managed out, made redundant, got seriously ill, died, had to give up their jobs to care for parents etc. Major life changes can happen in your 50s - many of which are negative and come as a huge shock.

I’m nearly 50 living in London. We all have mortgages, nobody has any plans to rush to pay them off and lots of my friends are moving into bigger houses in their late 40’s - late 50’s. I happen through circumstances to have paid my mortgage off in the last year but it has nw we been a priority and we were happy to never pay it off and just clear it eventually by downsizing. We were still increasing it by £200k when DH was 47

Our choice was to buy a home that gets our child into the best school possible.

Move!

I'd compromise! Move but to a slightly nicer area so mortgage free by 60.

Move

I’d move. We could move to a cheaper, smaller house in a not so nice area and be mortgage free by 40. But I’d rather stay in my naice area with better schools and know my children have more freedom.

We moved. Don't regret it. Financially you may find in the future you can overpay the mortgage e.g. if your earnings increase.

OP
Real time thread of difficulty selling in London right now.
www.mumsnet.com/Talk/property/4028119-London-flat-not-selling

Good area. X