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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Two properties or 1 expensive

5 replies

Tjit · 19/08/2023 15:04

Happy Saturday everyone

Please can you advise me from an investment/ life experience point of view what is best.

Currently have a mortgaged 2 bed maisonette with garden worth a minimum of £275, with around £70k equity which if sold would allow me buy a 3 bed house in same area or if I kept the maisonette but brought an additional cheaper place outside London for around £120k to use as a second home closer to DH's new job as an investment

With 2nd option, it would fit a Longer term plan (in next 10yrs ) of possibly moving to the cheaper place outside London and having a small mortgage or being mortgage free and renting London flat for additional income

I Have 2 secondary aged children of same gender who currently share a room in the maisonette

Current road nice except downstairs neighbour, whom we have had some initial conflict with but now stay out of each other's way, if selling, the ideal area we actually wanted is £200k over budget so we would be staying in an ok ish but not great area to afford to get the 3bed house or could choose a nicer second but cheaper property outside London

My head says 'move now' to place of £400k so kids can have own room and can be in a house not flat, but another part of me is thinking about spreading risk, having somewhere to retire to long term, 2 properties as opposed to one to spend time in over holidays etc, with possibility of renting for additional income in retirement or selling to help children with their own purchasing of first homes in the future

I am Interested to hear what others would do, particularly those with older children who faced similar choices, what did you choose, was it the right choice in hindsight?

OP posts:
Tjit · 19/08/2023 15:09

Bumping shamelessly

OP posts:
Nevermind31 · 19/08/2023 15:19

you are not being clear on where the deposit for the second property is coming from, or how much it it.
Also really not clear why you would have a second property, if you don’t have one that is big enough to actually live in.
just be aware that you will have to pay council tax etc on second property, and income taxes if you rent it out, and capital gains tax if you sell it…

Tjit · 19/08/2023 15:22

Deposit from 2nd property would come from recent inheritance of around £30k

OP posts:
Inca22 · 19/08/2023 16:03

Def one bigger house. Homes are for living in and your kids are growing up - they'll need their own space. Plus taxes on a second home are huge

marmaladeandpeanutbutter · 19/08/2023 16:12

Nevermind31 · 19/08/2023 15:19

you are not being clear on where the deposit for the second property is coming from, or how much it it.
Also really not clear why you would have a second property, if you don’t have one that is big enough to actually live in.
just be aware that you will have to pay council tax etc on second property, and income taxes if you rent it out, and capital gains tax if you sell it…

Why on earth is this relevant?

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