to ask what would you do ?

[bumbojumbo]

Looking to split with H. We would have to sell the family home. Once the the house is sold, would you :

1. Use the equity to buy a (smaller) and potentially slightly run down house in a shitty end of town. There would be little/no money to do the house up. It would mean I would still be a home owner in the longer term. The mortgage payments would be cheaper a month than renting. Life would be v tough in terms of spare cash each month.

or

2. Use the equity to top up renting a decent house in a better area of town, close to my sons school. Being able to walk to school is a priority for my son. Renting would cost more money than a mortgage and the house would never be mine. I would pay 80% rent from my salary and the rest from the equity. I would never be a home owner again (I'm 45) as I would have eaten into the equity. In addition, I would (carefully) use the equity to generally have a 'nice life' for me and my 2 DS (11 & 14) until they are adults and then go off to stand on their own 2 feet.

@bumbojumbo

In longer term plans, I stand to inherit all my parents house (owned outright, current value £550k) when they pass. I am the only child and am named in the will. God forbid it should happen sooner rather than later, but inevitably it will happen at some point. As morbid as that is. Some of the cash from their house would be used for my sons future, some for my own retirement.

A lot of that money may end up being used for their care.

I would buy a house - is there any chance you could buy a tiny place in a slightly nicer area? Even id the area was crap I'd still choose the buying option.

I would be very reluctant to step off the property ladder if you can manage to stay on it, particularly if mortgage payments would be less than rent.