To buy a first property now...

[amicrazy111]

.. given then we would need to move somewhere bigger in 4(ish) years?

BG:

DH and I are 30 and have 2 young DC. Currently privately renting. Have been gifted approx £30k deposit by DMIL. Income approx £80k combined, I am on a good progression plan so will look more like £90/95k in 4 years.

We don't want to leave our area for many genuine reasons and the most we can afford here (with that deposit, and with mortgage rates so high, alongside childcare payment) is a 2 bed.

Within about 4 years, DC will definitely need their own rooms (have DD and DS). So can get away with 2 bedrooms for a few years but will need a third in the not too distant future.

So, I think our options are:

1. Buy a 2 bed place ASAP, hope they within 4 years we have sat out the (predicted) drop in house prices and it is worth at least what we pay for it (if not more), and then look to move for a 3 bed place. We (should, all going well) be in a much stronger financial position by then allowing us to manage a higher monthly rate. But obviously it's not long in a place and we would then face the costs of moving again (solicitors, stamp duty, EA etc).
2. Sit tight for 6/12 months and see if house prices and mortgage rates drop as expected and see if we could possibly go straight to a 3 bed. Would be very tight until childcare costs finish but long term we might never need to move again so save on all the moving costs and turmoil. Obviously risky as no guarantee things will drop as expected. If it doesn't work out it mean we end up moving in a 2 bed place later than expected and having issues with the children still sharing later than we wanted.

AIBU to think option 1 is better?

Any advice welcomed. We are very unsure what is best!

(As an aside, what are opinions on the latest boy/girl siblings should share?)

What about a 2 bed that has potential to extend and add a 3rd bedroom when you’re ready and can afford it?

The stamp duty thresholds are also different/reduced for first time buyers so you’d maybe want to wait and make the most of that benefit on a more expensive house.

Option 2 but constantly looking out for a 3 bed where the owners are desperate to sell so may have a low price, or as the PP said, a 2 bed with the possibility of extending. There are so many extra costs with moving and it’s so so stressful - I wouldn’t want to do it twice in a short time period.

Give it another 12 to 18 months regardless of route.

Id get on the ladder now. People have been saying for many years that house prices are going to drop.