Downsizing house...is ex-authority a good idea?

[Kerry197]

OK, I'm on my own with two under-sixes, and currently live in a 3 bed, detached house in a fairly well-regarded residential area. I'm getting decent child-support from my ex husband (only my younger child is his), and I work full-time. However, it is a stretch, and I'm often just skint. I was thinking of trying to sell the house (albeit at a loss), and downsizing to a 2 bed, ex-authority house. I've got two boys, and would be happy with a smaller place as long as it had a small garden and was near their school. If I did this, I may (almost) be able to be mortgage free. There are very nice houses like this in areas of the town I live in, but I'm not sure if this is the right thing to do (financially or otherwise). I'm not a property snob, and was born and brought up in this type of housing - but people tell me it's a very backwards move, and not a good thing to do in terms of future 'investment', etc. So, is it better to live in a smaller house, in a less 'lush' area, but have more cash to do things such as go out, buy nice clothes, have a holiday - or is it better to hang onto the bigger house, 'nicer' residential area, and struggle for ready cash?

Depends entirely on what is more important to you, and if you would ever want to move to a bigger house again in future (assuming it remains just you and your sons, obviously may be different if you met someone else).

Personally I'd prefer to have the ready cash each month and the smaller property, and try to build up some savings rather than have a lovely house but worrying about money :)

Always go for the nicest residential area possible, even if it's a slightly smaller property than you could get elsewhere. You can always extend or remodel a house to suit your needs but, if it's not in a good part of town, you can't change that aspect.

20 years ago, for the same money, I could have had a 4-bed detached in the not-so-fashionable end of town or a 3-bed semi in the desirable end. I went for the latter and, aside from seeing the value appreciate, there have been a lot of fringe benefits that I didn't anticipate. For example, I discovered that we are in the catchment area for the best secondary school in town.

So, if you do downsize to free up some money, stay in your well-regarded residential area best you can.

Stay put. It will be worth it long term. It is an investment for you and your boy's future. Also, moving house is an unnecessary cost if you don't have to do it.

How old exactly are the boys? If at least one o them is not at school does that mean your childcare costs will go down fairly soon? If so, I would try and hang on until then as long term your house sounds really lovely!

My current house IS lovely! Thanks for the feedback, folks, as it made me think things through properly. MummytoKatie - yes, childcare should ease a little in the next 18 months or so, and Skinnywhippet, you're right - I hadn't factored in the thousands of pounds moving actually costs...! I think I'm just feeling panicky about being on my own, and what would I do financially if I lost my job, etc....but let's face it, everyone is feeling a little insecure these days. I think I will stay put - the hardest years will be behind me soon (hopefully!) and then I think I'll be very glad I stayed in this house, in this street, in this area. Thanks to all who replied - your clear heads and sensible thoughts were what I needed to hear.....

If it's any encouragement, I was in your position nearly 20 years ago when my marriage broke down and found myself trying to meet hefty mortgage payments and all the rest. Decided to make it a personal challenge to keep the house, even if it meant sacrifices. Did things like remortgaging to get better rates, got canny with the shopping, moved jobs to get pay-rises. Took about five years to get things feeling 'comfortable' rather than 'stretched' and, whilst I may not have had the fanciest holidays or gone in for the designer handbags, I've never regretted it.

It's a big responsibility to be the sole wage-earner but, then again, it's also rewarding to know that whatever you achieve is all your own hard work.

Op I did something similar but I completely underestimated the cost of selling, buying and moving. The estate agent fees, tax and then all the moving costs. Then add decorating costs, cost for new furniture and bits when your furniture doesn't fit. It really adds up!

I think if its a real stretch to cover costs by all means downsize but find somewhere you really like even if it means a smaller mortgage eager than being mortgage free. You want to be somewhere you like so you don't have to move again! A move from lovely detached to small ex authority may feel like too much of a change. No need for self flagellation!

'Rather than being...' Oops