First time buyers and WWYD?

[maybemyrtle]

DP and I are 37 and 36, FTBs. We're currently renting and have saved a decent deposit. We've got a decision in principle on my income only - DP has a blip on his file - which is enough to buy a nice 2 bed flat or an ok 3 bed house. We're both financially stable, apart from the past issue on DP's file, and have no children (although are TTC at the moment too!).

I was really keen to buy somewhere we could build a family home in (good schools, 3 bed, decent garden, etc) but I'm starting to wonder if we should buy somewhere that's nice "for now" but look to move again within 5 yrs. The short term option would be quicker, easier, we could get on the ladder, overpay the mortgage, build some equity, etc. But then I think of the cost/stress of moving and I'm not so sure. The family house is obviously for a family, but we could be TTC for years and planning for something that may never even happen, instead of actually living in the present and making the most of what we have. On the other hand, if I get pregnant quickly, that puts pressure on us to buy quickly before the amount I can borrow is affected.

I'm feeling quite overwhelmed and it feels like we're going round in circles and not getting anywhere. Help, WWYD?

Firstly consider stamp duty - what is your pot of money buying under or over £250k because this has a bigger affordability factor when moving again in 5 years.

Try not to get tied up with schools, bear it in mind and of you hit two birds one stone great, you will likely find that near good schools, your budget gets a lot less house. If schools are v important to you then buy wise - and go for the flat.

You could wait to see how the TTC comes along, I don't think you by law have to state on application that you are pregnant.

We recently got turned down on a good rate remortgage for having high childcare costs. Idiots lost out because these are going down in sept with DS starting preschool. So it's wise to get the mortgage in place, agreed in principle for 6 months etc.

Sorry not answered all your Q's

Thanks so much for this.

We're looking at properties around £185k, but stamp duty rate could definitely be a factor in 5 years. Hadn't considered that at all, thank you. Great tip too about the mortgage and childcare thing. God it's such a minefield!!

I vote nice 2 bed flat.
Have been criticized for my lack of ambition in past, mind.

3 bedder. Absolutely to my mind. Totally skewed by my situation. We're just moving to a 3 bed from a 2 bed after having a baby. Whilst I thought I'd manage for a bit post baby, once he was on the scene I was desperate to move. It also started to get tricky with mortgage with mat leave, child care costs etc. Some also reduce what you can borrow just for having kids. Luckily with financial advisor advice we just snuck through and got what we needed. Would have been massively easier up have got it sorted pre baby.

I think it's worth buying a 2 bed house with potential in the right school catchment. Nothing large but something a bit outdated that you could extend or loft convert if you did have DC.

Do leave yourself a bit of spare cash in case you need help conceiving. I expect it will be quick, but you never know!

At least if you are in the right school catchment, all the baby friends you make will have children going to the same school. It's so expensive and such a hassle to have to move again.

house not flat - doesn't matter how many beds

well i had 2 kids in a 2 bed flat. i think i would go with that and pay off as much mortgage as quickly as possible. get a good flat in a good location.

then you're set up to move well in a few years.

Gosh, such good advice here. Thank you all so much.

I think we may need to let go of the idea that we need that much space - we're currently renting a large 3 bed flat, but it's tatty and in a really bad area. There's no way I'd consider buying or bringing kids up here and that's the premium you pay for I guess.

Loads to think about, thanks again. :)

I'd buy a 3 bed house given your ages and life plans.

We were FTBs recently in our late 30s and early 40s and bought a 4 bed house. Partially this was because we're really lucky and had an inheritence to help with the deposit but also because we're too old to rely on trading up over the years.

I'd go for a 3 bed or a larger 2 bed that you can split in your preferred area.When you buying, don't forgot the stamp duty, legal fees, surveys, removals, essential fixtures/ fittings. This can add up! And all of it would be needed to be paid twice if you want to move again in 5 years.

Can you not look at both and see what gives you a good gut feeling?

Thanks, again. Really useful points. :)

We've been looking at both but it's like comparing apples and oranges - I was starting to feel that viewings were a waste of time if we hadn't decided exactly what we were looking for. However you're probably right, regardless of what we think we're looking for, the perfect place will just feel right. Thank you.