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Original poster

We have a hefty amount of equity in our house . . .

76 replies

SaveFerris · 09/10/2007 12:31

. . . .so we have two options.

Do we stay put, or do we move to a cheaper but still a lovely house and be mortgage-free?

What would you do? Would you rather be mortgage-free?

(bearing in mind the house we are in now is absolutely gorgeous but I am not totally in love with it so there would be no heart-wrenching goodbyes or anything)

OP posts:
Original poster
SaveFerris · 09/10/2007 13:20

Its pretty built up around there in an old village way, lots of different housese. Next to a lovely gastropub with beer garden, good clientel. A couple of other pubs in walking distance. Walking distance of DD's school.

OP posts:
Tinker · 09/10/2007 13:20

Are there any downsides?

TwigorTreat · 09/10/2007 13:22

other people are prats though

I don't see any downsides so far

it is a stunning house from the pics .. and you love it ... and you could buy a place elsewhere

Carmenere · 09/10/2007 13:23

I think the house is gorgeous go for it!!!

Original poster
SaveFerris · 09/10/2007 13:24

Downsides? Yes - DD's best friend lives opposite where we live now. But she will be moving to Plymouth in near future (next year or so). Where we are now is gated so v safe for children, but DH said he would 'gate' the development where the new house is now (its one of 3 houses so very do-able).

Utility room is smaller so I would have to have an outside washing line - I get away now with airers.

Not much of an airing cupboard - where do you put towels etc with no airing cupboard?

OP posts:
Original poster
SaveFerris · 09/10/2007 13:25

Actually the downsaides are minor and very fixable things, aren't they?

OP posts:
Original poster
SaveFerris · 09/10/2007 13:26

I googled Bauhaus - not dissimilar.

OP posts:
ChippyMinton · 09/10/2007 13:27

Get a tumble dryer
And a lovely old fashioned linen press cupboard, which would contrast beautifully with the modern style

this kind of thing or a proper antique if you can find one

Gobbledispook · 09/10/2007 13:34

4th bed is small

Not my style at all so I personally don't like it but I can see why you, and others, do.

It sounds like you are sold on it so go for it!

I'd rather be equity rich, but then I live in a house I lvoe, plus, I feel it's always better to 'move up' rather than 'move down' as you are likely to end up better off in the end.

It's a personal thing though isn't it?!

Original poster
SaveFerris · 09/10/2007 13:39

Yeah, the 4th bed is small. We would use it as a study and copensate by putting a sofa-bed in DD's room for visitors.

I can see why people would want to be equity rich but I just think we are in such a good position financially and could be even more so, and have 2 properties. And we are still pretty young (I am 27 and DH is 33) - most my friends aren't even thinking about mortgages yet, let alone in a position to be without one. And I do want to see the world :-)

OP posts:
Gobbledispook · 09/10/2007 13:40

Oh the idea of 2 properties is very appealing

No, I totally see your thinking.

Wordsmith · 09/10/2007 13:47

SF It's gorgeous - buy it now!

Original poster
SaveFerris · 09/10/2007 13:49

Ok, i'm gonna buy it. Just as soon as I have sold mine. Any offers? ;-)

OP posts:
TwigorTreat · 09/10/2007 13:55

see? that was easy wasn't it?

next problem?

ChippyMinton · 09/10/2007 13:58
Grin
ToadieG1 · 09/10/2007 14:05

I love that house, wow.

charleymouse · 09/10/2007 14:43

Just a slight complication, if you are so equity rich why not keep existing property as buy-to-let. Ensure rental income covers mortgage and have smaller mortgage on your new property which means you still have mortgage albeit more affordable one and have long term investment sorted. This will increase disposable income by a little. Just a thought.

Try not to think about mortgage as a debt just a fact of life.

PS house looks lovely

charleymouse · 09/10/2007 14:46

PS you can also buy an electric airing cupboard

lalalonglegs · 09/10/2007 15:10

Ignore "friends" who say that you should be moving up the ladder - you should move to where you will be happiest. Not having a mortgage is a huge freedom and, if you were shrewd enough to buy an undervalued house that has since risen in price, then you should definitely cash in on that sooner rather than later. Everyone feels they should go for these bling, bling houses but, as you've found out, 5 bathrooms isn't exactly the only way to be happy. Sell, sell, sell and spend money on things that will add quality to your life, not meaningless status.

TwigorTreat · 09/10/2007 19:46

charleymouse .. I have never understood how that works .. or maybe I just don't have the 'guts' to understand

so say you're equity rich and still have an affordable mortgage

you keep existing house .. hence existing mortgage

then you add on the total price of new house and hope you can rent out the old house

but you are left with a mortgage of 400K plus previous mortgage no?

see, I don't geddit

bubblepop · 09/10/2007 20:19

ooh it would be lovely to be mortgage free, providing that meant you could still have a lifestyle that you can enjoy.

bran · 09/10/2007 23:40

I never even knew there was such a think as an electric airing cupboard, and now I have to have one.

Twig - what you do is heft up the mortgage as high as you can on the house that you rent out (because the interest portion of the mortgage repayment is tax deductable). Then you have a low or no mortgage on the new house. Hopefully the rent will cover most of the mortgage on the rental property with a bit to spare, but you have to have a bit of a financial cushion in case it doesn't have tenants for a few months.

charleymouse · 10/10/2007 13:50

Twig I think bran has explained it better than I can.

Bran I have to have one of those as well. Even if I don't need one it just sounds so good.

SF any update as to how it is going? Is your house going on the market soon?

portonovo · 11/10/2007 14:28

Mortgage-free every time! I really don't see the contest in your situation - you could still have a lovely home, we're not really talking serious downsizing are we.

Use your spare income to invest for your future and to enjoy the sort of life you want to. Don't worry about people telling you should should be moving up the ladder - they'll be the ones fretting in a few years' time that they can't retire early because of a huge mortgage!

roneypony · 15/10/2007 18:32

Since house prices are rising and will continue to rise over the years and the more expensive the house, the more the rise will be (ie if your house is worth £100k and house prices rise by 10% you will make less than if your house was worth £200k!)
I would NOT move to a cheaper house

Being mortgage free is not the ideal some people see it as being. You spend what you have available and soon find that the money you would have spent on the mortgage is frittered away elsewhere.

Property increases more than savings over the years and so unless you desperately need the equity stay put