To ‘downsize’ in late 30s

[Sleepysleepycoffeecoffee]

This is just a post for people’s views really and maybe take some inspiration or ideas from others. I’m 37 and pregnant with my second child. We live in a nice house worth about £385k which would easily see us through until my children are grown up but it wouldn’t be too big for just me and my husband later on. However, it needs quite a lot of minor updates (decorating, carpets, garden etc) which we don’t have spare cash for right now and with a new baby will be unlikely to prioritise over the next couple of years. Plus we can’t really be bothered to take the time doing it. We both work full time and are comfortable in that we earn enough to pay our bills and for ‘treats’ as well as saving a bit each month (savings will be used to supplement maternity pay though and I’ll have to start from scratch once back at work). I’ve worked in social care a long time so see people from all walks of life in pretty crappy situations when it comes to health and significant life events. The more I see and with all the current talk of budgets and general cost of living crisis, the more I’m thinking of downsizing my mortgage to either not work as much now or reduce the mortgage term a bit for the future. This will inevitably mean having a smaller house with smaller garden but it will give me more time or a bit more money to enjoy my spare time more. I am very much of the view that ‘the more you have, the more they take’ when it comes to paying out later on in life (eg social care costs) - unless you are filthy rich.
Is it very irresponsible of me to reduce the value of my assets so early on?? My children probably won’t benefit from inheritance in the way that people used to. It’s difficult to get the balance right between ‘you only live once so enjoy the here and now’ and ‘earn / save / invest as well as possibly for mine and my children’s futures’.
I wondered if more people are thinking the same as me lately?

The thing is the amount it would cost to move would pay for a lot of the minor renovations you mention.
I wouldn’t downsize now if I were you, I think you are thinking too far ahead about inheritance and care costs etc. Could you extend your mortgage term to make repayments more affordable and give you more fun money? Then pay off your mortgage when you eventually downsize for example when your DC are early 20’s?

How big is your property. You say my children so have 2 or more

Ideally a 3 bed so a room each

Or do you have 3 kids so 4 bedrooms

Downsizing is good but also a cost

Stamp duty - moving fees and solicitors stx can run into the 10/15 of thousands

Which ks what it would prob cost to do the work at yours Anyway

I would extend term of mortgage if want more free cash and then when kids older overpay

Sorry says 2nd child - meant would you be thinking of a third

Tho still depends how big property is

Exactly what we are doing (or trying to!). We have a big house with a huge garden - rural. It's been a labour of love and we've ploughed a lot into it.

Consequently we've reached a stage where we can downsize and live in a more modern house in a city we love and pay off the mortgage. It means the holidays, day trips, meals out, takeaways that we have had to sacrifice will be able to take more priority and we can enjoy life a bit more.

Yes there will be some sacrifices- we will have less space, less privacy, a smaller garden etc. But my children are at the ages now where they don't have big toys and often want a lift to the city anyway for sports matches and meeting friends. Do it!

The cost to move would be more than the redecoration.

Considering you have a growing family I would stay and hope things improve in the long term. Do one room on a budget at a time.

Moving carries its own costs which could easily cover the work you want to have done on your existing house.
What about the work that will (in all likelihood) be required on the new house? Chances are you will want to decorate (new carpets & curtains etc) so where will the time & money come from for that?
Downsizing rarely releases significant sums of cash unless it involves a relocation to cheaper area as well.

Personally I would stay put, get the decorating etc done and keep paying off the mortgage with a view to looking to downsize later on when the size of your family is settled.

We downsized when we were both 35. It was simply the best thing we’ve ever done financially.

Smaller house means more holidays and more of a safety net (we can save more!) - it’s been very freeing! We’re also hoping to retire a few years earlier than previously planned. In many many years 😂

We were very careful to ensure conveyancing, stamp duty and moving costs didn’t cost too much / use up our profit. It was a very strategic move but involved a lot of balancing.

It’s worked out well for us! Kids don’t even notice the smaller house it’s quite funny tbh!

We've done this. Best thing we've ever done.

Retired late 40s. No mortgage. We can send both kids to private school and build up our investment portfolio.

Kids will be better off long term with less stressed parents and available cash to help them launch when they need it.

People will tell you to soldier on with a big house and big mortgage but it's not necessarily in your actual best interests. Remember misery loves company.

Having no mortgage or rent to pay is extremely liberating.

If you work in adult social care then you’d know that the sensible thing to do is to put your property in trust to avoid paying full care fees