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Original poster

Please talk some sense into me (house buying related)

28 replies

Thewalker75 · 01/10/2019 12:35

I need someone sensible to tell me that buying a (beautiful) new house is absolutely not the right thing to do right now.

We bought our current house 4 years ago and have spent a lot of money doing it up, but it still needs a lot doing to make it how we really want/need it and we have pretty much run out of money. We remortgage last year to finish off the bulk of it.

It's not an easy house to live in as it's very old, no parking (quite a walk down a long narrow overgrown path to get to the car), tiny bedrooms and the garden, which is huge and we thought was an absolute bonus when we bought it, is completely unmanageable for us (we have 2 DC under 3 so spare time is non-existent), so its overgrown and untidy.

I dont love it. I cant relax in it as everywhere I look there are jobs to do which will never get done, theres just too much.

I found our dream home the other day, we went to see it and its perfect- new build so no work needs doing (bliss), parking, big bedrooms and kitchen etc. We could live there happily for 10+years easily.

BUT it's expensive. We could just about afford it but we would be really pushing ourselves to the limits and be putting us into debt for a couple of years whilst we are still paying childcare costs and I'm still paying off a debt from university years.

We would need to use the help to buy scheme too and that's something that makes me a bit nervous when looking at the sums we would need to pay back.

We weren't planning on looking at moving for another couple of years at least we said we would get the boys to school age, get rid of my debt and we would be in a much better position but we dont want to move out of our town so choices will be limited.

It's a stupid idea isn't it?

OP posts:
lovelygreenjumper · 01/10/2019 12:46

We've been looking at moving for similar reasons and have concluded that, after an old 'quirky' house a new build seems like bliss but (certainly in our area) is very expensive for what you get.

Have you considered whether there is a way you could afford to spend a small amount of money to make your current home more relaxing (eg either getting a gardener for a few hours every week or so to keep the garden in check, or to come and make it more low maintenence)? If bedroom sizes etc make the house impossible with DC how about looking at whether a slightly older property (by which I mean not quite new build, but not eg victorian) and a budget for someone else to do a bit of cosmetic modernisation would be more affordable? In our case we found slightly older houses had bigger bedrooms and were significantly cheaper than a newbuild- so we've arranged for builders to replace the bathroom and kitchen and decorate throughout but still saved 20k+ compared to the newbuilds a stone's throw away

Original poster
Thewalker75 · 01/10/2019 13:00

We did pay someone to come in and do some work to make the garden more low maintenance which has made a difference, but dp doesn't want to get him in again as theres now the big stuff to deal with which he sees as his job to do Hmm

The other thing is we had the house valued last year and the agent said dont do any more to it unless it's for your benefit as its reached its ceiling price. So it feels that any money we spend now is not an investment whereas before it was good knowing we were adding value.

I just feel like a spoilt brat saying I want to move to a nice new house and I want to move now!

OP posts:
Original poster
Thewalker75 · 01/10/2019 13:01

Plus, the bedrooms were big but we had to chop the biggest one in half to make room for second baby so in terms of structural work now we cant do any more.

OP posts:
QforCucumber · 01/10/2019 13:29

Thewalker75 We are doing this right now, however we also aren't - in that our house just isn't selling so we are now stuck really disliking the house we are in but potentially missing out on the new build as we aren't in a position to reserve. Trust me it's shit.

Notreallyhappy · 01/10/2019 16:39

Top & bottom is you really can't afford the new one, so start lovng this one.
Take each room one at a time & make it yours. Bigger newer houses aren't all that.
Mine is nearly 20 years old was nearly new when bought & have still had to spend on it..no storage, not planned great for modern living, had lots of small rooms which we've opened up etc.

Look at the front of yours, can you add parking to it knock down the wall - throw some chippings on it.. there parking
You've got a long time yet to get it perfect..just enjoy your children & a home...some haven't got that luxury x

dontdoxmeeither · 01/10/2019 18:43

Is there no middle ground? As in, sell current one and buy one that needs next to nothing doing to it, smaller garden but affordable?

I always dread reading about people overstretching themselves and I know the odds of similar happening are low BUT

DH and I have a mortgage, fortunately not a horrendously high one because DH had an accident rendering him disabled/unable to work. That was five and a half years ago and it was tough financially. Things are stable now thankfully Smile but I'd not be in that position again. Would always urge to take some kind of insurance to cover things like this. Good luck

Beetle76 · 01/10/2019 18:59

New builds can be just as stressful so the grass is not always greener. Be prepared to put up with snagging for the full two years or however long the warranty lasts. Be prepared for abominable customer service that could drive you mad. Please, please don’t over extend yourself to put yourself through the new build experience. It sucks!

Original poster
Thewalker75 · 01/10/2019 19:32

Thank you. You're all right and I know we are lucky to have what we have and to put ourselves in a precarious financial position for the sake of waiting a couple of years is stupid.

Theres not much left we can do to our property now without spending money we dont have so I guess I need to start loving this one. I like that it has a bit of personality and that the walls aren't straight, and that we dont have anyone overlooking us which is something we would def have in the new place. We also have lovely neighbours which we couldn't guarantee elsewhere. That's all I can think of for now but will come up with more!

I also hadn't factored in that someone would want to buy our place Grin it was empty for months before we took it on. It's not appealing to many because of the parking issue, we are set up high on a bank so no option for putting anything in. We just thought it was fun and quirky to begin with didnt picture how difficult it would be dragging shopping, a toddler and a baby up there!

OP posts:
SnappedandFartedagain · 01/10/2019 21:10

I would move! You've given it 4 years and still don't love it. Same as me, I've been here for nearly five years and am about to move, which is not particularly sensible financially at the moment. But spending every day in a house I actually like or love will be so worth tightening our belts for a couple of years.

SnappedandFartedagain · 01/10/2019 21:12

You could test your house on the market and if nobody wants to buy it then you have your answer for the time being.

TheBrockmans · 01/10/2019 21:27

What is the schooling like near both houses, both for primary and secondary if you are thinking long term with the new build. Often new schools are not built - especially at secondary level, or are finished after some of the housing so years of portacabins. At what age do you think the awkward parking will be less of a problem. Can your 3yr old manage it with supervision?

EdtheBear · 01/10/2019 21:46

How easy is it going to be to sell it?

Given the uncertainty at the moment I'd sit still. We are almost at the end of the summer. Get somebody to sort out the garden and it shouldn't need touched over winter.
The lane will get easier as the kids grow.

Original poster
Thewalker75 · 01/10/2019 21:52

Ah dont sway me now!

The new house is less than half a mile away so same school either way. I'm not sure if that makes the decision easier or harder.

Could test the market but I know once it goes up I would find it very hard to turn back. I dont want to move for the sake of it.

Mortgage advisor coming back with more detailed figures tomorrow so might have another look then...

OP posts:
Original poster
Thewalker75 · 01/10/2019 21:53

Ds2 has just started walking so lane will def get easier very soon.

OP posts:
sst1234 · 01/10/2019 22:57

I could have written the very same post, only differences being we live in a new build now and quite like it (still want another new build), and we don’t qualify for HTB. Other than that exactly the same details, new house if half a mile away, perfect in terms of everything but we would be overstretching ourselves.
Maybe I’m biased but I would say go for it. You don’t like your house, that’s different to just wanting a new one, that’s a big deal. Out of curiosity, how much does extra does the new one cost and how much would your mortgage increase by?
Could you go for a longer term on the mortgage with a view to overpay when nursery costs are no longer a problem? Interest rates are low. The way I see it is that there will never be a better time to try and get that dream home.

Original poster
Thewalker75 · 02/10/2019 06:50

Ok some figures would probably help - I'm terrible with numbers but I know this probably doesn't look good but maybe someone with a good number head could help...

Current mortgage £205k
Current hourse worth £250k
New house £355k
HTB loan would be £71k
Plus deposit of £55k ( dont actually know where we would get this from as equity wouldnt cover it Confused)
Nursery fees around £800pm
My debt £10k

OP posts:
Original poster
Thewalker75 · 02/10/2019 06:51

We couldn't get a much longer term on the mortgage as I'm late 30s and dp is mid 40s

OP posts:
Gin96 · 02/10/2019 08:09

You also have to remember to factor in moving costs which are anywhere between 20 to 30k

PostNotInHaste · 02/10/2019 08:18

I don’t see how you can afford this, as previous poster said there are moving fees to be figured in and you don’t have enough equity to cover it.

I’d come up with a plan to make your house better for now, can you explain the lane and the bank a bit more? Is there absolutely nothing that can be done there?

dimsum123 · 02/10/2019 08:21

The figures don't stack up. So you can't even if you wanted to. I wouldn't overstretch yourselves particularly at the moment with B looming..

Blankscreen · 02/10/2019 08:23

I would caution against the HtB scheme.

You basically can't afford the house and I feel that the HtB scheme is artificially inflating the market.

If the 'market' dictates that no one in your area can afford to pay the full price for the house (assume everyone is exactly the same as you) then it should be reduced accordingly until it sells. That is what usually happens and what happens with a second hand house. With HTB you end up saddled with a second mortgage inorder to pay the premium which is effectively the developers profit on the plot.

Sorry I know it's not what you want to hear but as others have said, is there some middle ground that you can afford.

Glera · 02/10/2019 08:28

Both pros and cons below to mull over but what I would say is the following:

  • Living costs in a new build are far lower. We paid £44 a month on gas/electric in a 3 bed detached.
  • Builders sometimes have promotions and offers for covering stamp duty. It may be worth enquring.
  • Definitely don’t let on to the builder fully how much you want it, show you’re interested and see how they can tempt you further.
  • Help 2 Buy is worthwhile in my experience if you only see it as short term help. After five years, you start paying interest on the loan so that is a good time to either sell and pay it back or redeem it another way (through remortgaging). Honestly, neither of these options sound right for you though as you don’t want to move and will already be pushing yourselves mortgage wise.
  • How long until your child is entitled to the 30 free hours? Is it a year? If so, by the time you sell your house and move in you may only have a couple of months of childcare to pay.
  • Could you take the longest term possible for now and then reduce by a year or two each time you review your term (if you go for a fixed-term mortgage deal)?

Good luck with your decision making. If you decide to stay, I hope you’re still happy with the home you have been making.

VirtualHamster · 02/10/2019 08:37

You haven't given your salaries but remember that affordability criteria have really been tightened up. I'm not sure with outstanding debt, a relatively small amount of equity and 2 dependents with childcare costs you'd be in a position to buy the new house

Lightsabre · 02/10/2019 08:45

What is your salary? Don't forget to factor in Stamp Duty, legal and removal costs. You'd need about £12K on top of the deposit at that price. Or does the developer offer these as incentives?

dontdoxmeeither · 02/10/2019 09:59

Oh gosh no, you're figures will be really tight Sad

I honestly think you'd regret it and be saddled with a huge mortgage for a long time. Also don't forget, most new builds are overpriced as it is.

I live in a village. On the outskirts there is lush green countryside, hills. Some new builds appeared about 10 years ago. Not many, about 20. All of them were hideously expensive because they were new builds and had fabulous views. Fast forward to now and there is a whopping new build estate being built slap bang in front of them. Different developer as well so completely different looking. But the WORST thing is that their previous great view has disappeared. Instead of open fields, hills, they're faced with someone's back garden and house.

This has led to a MASSIVE fall in value. So not only did they pay top dollar, they'll never recoup that.

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