Wait for a change in our financial fortunes or move?

[pollygreen7]

We live in South London in a 2 bedroom flat. It's very nice and largely suits us well but having people over is a bit of a hassle and I'm worried as DC gets older there isn't a huge amount of playing room.

To give a little context DH earns £75k, close to £100k with bonus. My salary is under £20k. For us to move to somewhere with a 3rd bedroom near us the cost if around £800k, if not more.

We are under 30 and DC is 3, would you wait another 5 years and see if our financial situation changes so we can stay in the same area? Or should we move somewhere that is still 'cheaper' like Norwood?

Schools might be an issue. Think about where you want DD to go and if you will be in the cachement (unless you are going private). Do you like the cheaper areas? Would your quality of life be poorer there (types of shops, parks, friends, classes etc).

Have you considered areas like South Croydon or West Wickam? They both 3 bed properties around the £500 - £600k mark. Having said that, West Wickam would be better as most of the area is in the catchment of some of Bromley's best senior state schools

Honestly I don't like the idea of being stuck in a flat with a growing family & if market continues down flats will be hit harder to sell. When my family bought in Balham in the 80's the in-laws thought they were crazy. Now their houses are worth 10x what they paid (if they were looking to sell & crystalising gains) I don't think current "cheaper" areas of London will see gentrification & gains that have happened in the last 30 years and that's a good thing! You have to think about what works for your family now & in the near future. I'd consider Croydon as a real possibility. Excellent links to London, schools on the up and major investment (westfiled) we liked addiscombe before unexpected windfall meant we could afford a 3 bed in SW17. There is still a snobbish attitude to the area which means you can get a great family home for a vaguely achievable amount. As long as you're buying long term & not to make money you should be fine.

You're still young and it sounds like your earning potential is good so I'd sell up now and move to a longer term property. You could take out a 30 year mortgage to keep costs lower but then overpay as bonuses rise/salary increases.

Buy somewhere that can be extended as finances improve.

Great ideas. I'll talk to husband about moving within the next year or so.

Schools isn't such a concern as Grandparents have kindly agreed to pay private fees for us, so only concern would be the travel in the mornings to school.

We LOVE where we live, it suits us in so many ways - great parks, plenty to do, easy(ish) to get into central London. I just worry about when my parents get older, and DC gets older and we definitely need the extra room for everyone.

If you’re in no rush then I’d wait til after next March.