Would you "upgrade" to 4 bed from 3 bed house in my situation?

[oreoxoreo]

I own a 3 bed house (not extendable and with relatively small mortgage) which I absolutely love.

I have a chance and can afford to buy my neighbour's 4 bed house on the same estate, would have to increase the mortgage but this would be still reasonable (3 x my income).

Advantages:

• 4th bedroom (can be let out if necessary for extra income)
• Longer garden as opposite to my miniscule garden (current garden 6m long, 4 bed garden is about 16 meters long though very neglected).
• A possibility of a small extension unlike my current house (downstairs space is exactly the same in both houses)
• "Investing" in equity while I am young (early 40s), have borrowing capability and interest rates still low

Disadvantages:

• The 4 bed house's garden is east facing and bordering woods (large hospital site woods, cannot be used by us), hence quite dark, though much longer than my current tiny but sunny garden. There are other 4 bed houses on the estate (not for sale though) but most of their gardens are overlooked by other houses, and I suppose woods are better than being overlooked.
• All my money will be in "one pot"
• My DC are 10 and 8 years old, I risk to have to downsize again when they are grown up

What do you think?

I would, if it was as affordable as you say. I like entertaining and having people to stay, so I like having a spare room, as well as my children having their own space.

And I wouldn’t worry about potentially downsizing in future. It’s an absolute minimum of a decade away. Who knows what your future will bring?

Tricky one given how much you love your current house. Try to focus on why you’d be moving. Garden space - how important is this to you? Extra living space? Potential for capital growth? Potential for income from lodgers? What was it that piqued your interest in the house?

Remember that your DCs are going to be with you for another 10 years at least so downsizing immediately isn’t an issue. What would the stamp duty be? What kind of decorative state is the other house in? Do you want a project?

I think you’ve got to think about this relatively dispassionately and do quite a careful look at the pros and cons: there’s more to think about than those you’ve listed.

I like the question to myself "Who knows what your future will bring?"

Well MindBodyChocolateWell those are all very good points.
To be honest I was looking for a buy to let (but can only afford one abroad which I have decided against) and then an idea pop into my head, that to let out a room in a 4 bed house would be more worthwhile and easier to manage, no taxes etc. I also don't mind having a person around as I have had aupairs for 5 years and find them a bliss.
I love living on my estate and I think my own 3 bed house is positioned very well given how dense is the estate. There are only few 4 bed houses that aren't overlooked, this one is sold by someone I know, so it would be a private sale, it is well decorated and only the garden needs lots of attention.
I could of course wait for a better 4 bed house to come up. But I could be waiting for a very long time :)

Move

Unless you need another bedroom or more downstairs space I'd stay put. I'd rather have a small sunny garden than a large one that's in the shade most of the day.

No really really isn’t the time to invest in property. Only buy it if you would rather live there.

Oh, different opinions then. I feel if I don't move now or soon, I will have missed the boat, I will become too old too borrow and my DC too old to be worthwhile to move (given how expensive is to move).
The moving costs including stamp duty would be around 15k.

If I decide to let out one bedroom the rent would more than cover my additional mortgage.

My 6m x 6m sunny beautiful garden against 5m x 16m east and woods facing garden is a bit of a bugger.

would you be happy to rent a room with 2 small children in the house?

antimatter yes I would.

depending on how much are both houses there's cost to moving and if you can afford that then go for it

Tbh I probably wouldn't. Not if you love your current house and have enough space for all of you in it. It doesn't sound as if you'd be moving for anything other than purely financial reasons, but you'll lose a lot of money by moving (as well as a lot of time, upheaval and stress) and you won't be guaranteed to get much back. Why not stay in the house you love and invest your money elsewhere? Stocks and shares, ISAs, pension funds etc. I would only consider moving if I actually wanted to live somewhere else, but it doesn't sound as if you really do.

Oh do not move based on renting out a room for mortgage payments. It is one thing having an au pair live with you, quite another sharing with a lodger. Also, when your children are teenagers are you sure you will want a stranger living in your house?

You are financially secure and love your house, you don't need the room, you would rent it out. I have a friend who does this and honestly, it is so stressful for those of us who are her friends to call for coffee now as there is always a lodger there, and it is not the same as when she had an au pair - lodgers definitely spend more time in the house while you are there.

And I would never buy a house with a dark garden.

Id say no dont do it. Were you looking to upsize before next door came on the market? If not then no. If yes then choose somewhere else. If youre questioning it then its not right. If it was right you would know. Likelyhood is if the garden is dark then you wont use the extra space because its not sunny/warm. Its not like 2 children are currently sharing and u need the extra room which seems to be the pull of the house. If downstairs is the same dont bother. Maybe if yoi did want a 4 bed wait to see if another in the area comes up.

If you wanted a 4th bedroom could you look at converting the loft?

In terms of the layout how do the 2 houses differ? You said downstairs was the same space, has this an extension over a garage to give more space upstairs or is there the same space as your 3 bed, but with 4 beds?

Are there no other houses you could buy that maximise your investment but don't suffer the disadvantages of this house? Don't trade a house you love for one you don't. Wait until you find another house you love.

I think the fact you said you 'love your house' is quite crucial here.

Unless you are hugely interested in gardening, I wouldn't move for a bigger garden now the dc are 8 and 10 - you've missed the optimum time for them using the garden to play in. If you want to 'garden' then would an allotment scratch that itch ?

It seems really odd to choose to move to a different house, so you can let out a room to cover the difference in mortgage, when you have young children (soon to be teens) in the house. I mean "not minding" a non-family member in the house if you needed extra income and already had a spare room is one thing, but moving so you can let out a spare room, when you won't end up any better off seems a really bizarre move.

I'd stay put.

No. Seems really pointless and like you won’t even get a nicer house really.

I wouldn't get a bigger mortgage with Brexit on the horizon.

Really, it would be an investment, wouldn't it? On the basis that a 4 bed should increase in value more than a 3 bed. And there are things you can do with a shady garden. Keep chickens? Put up a cabin? ( Use it as a workshop, or hideaway for the DC)? Have you asked them what they think?

No because an East facing garden is rubbish.

Update: thank you for your replies.
Decided that that house is not for me after all. Maybe some other in the near future, so fundamentally not giving up my idea to invest but perhaps in another option that I will love as much as my current house.

I am sure you have made the right decision. Sunny is a quality to be greatly cherished - dark and gloomy is not good. Also I would say that a wood belonging to a hospital is greatly at risk of being sold on and turned into a new housing estate.

There is something very basic about homes - we usually know in our hearts what we love - and that is rather precious.