Another location v house (price) question

[tinselvestsparklepants]

We're trying to decide between living rurally and moving between a few small towns which have a choice of things to do. We currently live very rurally and I adore the countryside around here but I'm sick of tractors thundering past and I'm sick of being an hour away from anything interesting!

My dilemma is that an area we have found which is great for things to do (in a triangle of things all about 15 mins away) where we could still get a house with a large garden (my ideal) is generally priced at about £150k- £200k more than the houses we could get rurally. It's known as a naice place! So rather than buying for £450k we'd be looking at £600k ish, which is a stretch.

We can afford it but we'd have to get a mortgage of about £250k which is more than hoped. We are in our mid 40s with secure (as far as we know) jobs. Half of me thinks the bigger mortgage is worth it for the new area and my other half (And my dh) isn't sure we should stretch. But I'm not sure I can do another decade of fields, and think that this expensive area would at least stay expensive so we'd not make a loss (but improvements, which this house needs, may not add much value - and it does feel very overpriced coming from where we currently live). We've got no kids to consider so just ourselves to please. Would welcome opinions. Blow the budget or be sensible?

[tinselvestsparklepants]

....and the first house has sold before we got to view it! Ok here's hoping that our viewing tomorrow will still go ahead. Market is hot round here!

[tinselvestsparklepants]

Yes, very aware of that. It's happening a lot round here. Thanks for the reminder though!

[Ariela]

Do be aware that edge of village quietness can easily be spoiled. My friend has been in her house about 25 years, it was rural, outside edge of village and very very quiet. Over the years 2 or 3 large housing estates have been built in the fields, so now instead of 2 or 3 neighbours you get the light overspill from a hundred or more windows facing her way. The bats have all but gone, the deer and the badger no longer visit, it's noisy, people walk past every day from the estates, dog poop everywhere etc.

[tinselvestsparklepants]

Spotted another house today that went into the market yesterday. Slightly smaller by one room and garden smaller but £100k cheaper. I think they price via chicken entrails / smoke signals round here. Bonkers! Viewing booked.....

[JoJoSM2]

If the house that’s come onto the market is priced to reflect the work needed, then you won’t have much to lose. You’ll pay minimal stamp duty and add value by doing work. If you change your mind about the new place, you should make money on it or at least break even unless the market really really crashes.

[GiraffeNecked]

Interest rates are ridiculously low at the moment - which is what tipped us over when we did the maths - borrowing has never been cheaper and likely to stay that way.

Back of our new house - in town - is very dark when the neighbours have gone to bed and turned their lights out - can see a lot of stars still.

And if I ever want real dark skies it's only a 10 minute (nice) drive.

Being able to walk to the pub, cinema, walk past a good range of shops on way home, choice of restaurants and being able to walk home from them. It's all good.

We'll probably end up moving again in about 10 years time so I can get my much longed for view - and I would like a slightly larger garden when I retire.

[tinselvestsparklepants]

Giraffe we sound very like you! Even to the point where I will be hanging around after the viewing for the sun to go down to see how dark it gets. Even though realistically the amount of time I spend outside in the dark is very limited! The house we are going to see is still in a village and still on the edge by fields and woods but you can be in an actually city in 30 mins and with two small towns close by. (So hmm yes it'll be orange skies I guess!) where we are now is on the edge of nothing both in terms of towns and culture. Great for stars and bats.

We were planning to sell and wait as a PP said, then this house came up. It's not been on the market for a very long time, needs work (which we can do ourselves), so it seems like quite a rare chance. I almost wish I hadn't seen it.

[Updownin]

Personally, I would bank the house sale and rent for a year to 18 months. It gives you time to see what lifestyle you want and this is going to be a very tumultous time. You don't have dc to worry about moving schools/ unsettling.

[JoJoSM2]

If you’re already overpaying to that amount, then you’d probably be comfortable with the new monthly payment. Let us know how the viewing goes.

Just to say, the 4K is just the extra annual interest. When you add on the capital repayment element of the mortgage, you’d be paying about £800 extra every month. It’s just that the interest is money down the drain and the capital repayment is sth you’ll recoup.

[GiraffeNecked]

We did this, wanted to stay in town but have a decent sized garden. That means taking on a bigger mortgage., a house that needs a bit of work, and we were early 50s and mortgage free when looking.

It was the right thing for us, having the space to work from home is amazing, a decent sized garden, and being able to walk to town.

I still Occasionally hanker after dark skies and space around us....but it’s much more practical for us to be in town. You can’t have everything.

The mortgage is manageable and if the worst comes to worst, we’d sell, the house is in an area that sells easily.

Do it.

[NotQuiteUsual]

I wouldn't want to take on a mortgage that high in my 40s. But I've cut my cloth accordingly. When would you be able to pay it off by? I'd not like a high mortgage to still be going on my 60s. Is there a compromise you can find or a plan to downsize before retirement?

[Pipandmum]

I'm moving to London. I currently have a four bed, four reception room detached house with large garden and a pool. But for what it's worth compared to what I want to buy I'm going to have to move to a terrace house half the size or a flat. But for me it's the location every time, so I'm doing it.

[tinselvestsparklepants]

Where we currently live it's at least £30 each way in a cab to our nearest town to go for a meal. It really does stop you bothering. In the possible new area it'd be 5miles one way or 3 in another - cyclable or a cab fare of a more sensible 'on a whim' number, with loads more restaurant choice, too.

But this thread has been so helpful because would I pay £4K in interest a year to essentially pick up our house and move it? Actually my gut says that could be worth it. After a decade of living in the middle of nothing we can really go to on the spur of the moment, an hour on the motorway to get to an arts cinema etc, I'm leaning towards spending the money. If Covid's taught us anything it's that we only live once. We won't be harming anyone else if the experiment fails! We have worked really hard and been so careful for so long to be in this position. I did some maths today and we can afford the payments (indeed we already overpay our current mortgage to a similar amount) and if the interest rates rise. I started this thread because I saw a house I liked the look of but was priced at more than we were thinking our budget should be. I truly didn't know if it was a ridiculous idea. After considering all this feedback I think I'll book a viewing. It might be hideous and something might turn up that's far more sensibly priced. But this one does tick a lot of boxes, so perhaps I should put it to rest by going.

[JoJoSM2]

Sorry, where I’m going with this is that upping your mortgage by 200k at 2% interest is 4K a year in interest alone. Even if you get a £30 can after a weekly night out, it still saves you thousands. Also lower monthly payments so potentially less stress and you can invest spare cash elsewhere.

[JoJoSM2]

And how far from a cinema or bars/restaurants are you? Are the cabs v pricey?

[JoJoSM2]

Is it only between these two locations? Or is there another option that’s a bit less expensive for what you want but still reasonably well connected?

[Embracelife]

Just get what you want.

Have as many bedrooms/offices as you want
Live where you want.
No kids (no kids' expenses) so you only have yourselves to please
If you can afford repayments go for it
Dont listen to anyone who says you cannot have extra rooms without kids to fill them . Now that is mad.

[TurkeyTrot]

I would go for the bigger mortgage and get what you want.
You will be able to pay it off as a couple.

[Sleepingdogs12]

If you both want the location and the big house/garden and can afford it and are happy with the increased mortgage then go for it if you will be there for the foreseeable future ie can ride out a property crash if it is coming. You can't future proof all decisions. The increased mortgage is the compromise you are willing to make.

[tinselvestsparklepants]

That's the issue. It's hard to get a small house with a big garden and a decent amount of outdoor space is non-negotiable for us. We could have fewer beds of course but 2 beds tend to have smaller gardens and more neighbours. Maybe we've been spoiled where we currently are! Still this is really useful way to think it through - thanks all, we don't really have people to chat to about it irl so this is helpful.

[JoJoSM2]

As a couple, I’d want to be close to things to do to make the most of days and nights out. It sounds like you won’t be too far from the countryside to get your fix of peace and quiet.

You could really re-think how much space you need, as eg dining rooms can be easily adapted to working from home so maybe 2-3 bedrooms would be comfortable. I do realise, though, that with smaller properties it’s difficult to get enough plot and not feel jammed in.

[FreiasBathtub]

Doesn't sound like this is a forever home so I would say compromise on the house (3 beds not 4) in the more buzzy location. And then you can see where you are in 10 years - as you say the town areas will hold their value.

But may be biased as I know I'd go crackers in the middle of fields.

[Sleepingdogs12]

Look at houses in both locations for the ££ you want to spend ,hopefully you will have a gut reaction to help you decide on your priorities and compromises . You might have to accept a smaller garden than you hoped for or fewer rooms but have room to build an office in the garden , someone works in sitting room , coffee shop or live in slightly less desirable area to get the space.

[sunshinesupermum]

Location always, but a three bed house would still give you a study each as well as master bedroom as you have now? Studies could have sofa beds for guests? Its such an uncertain world I'd also worry about taking on too large mortgage now.

[ChillerKillerCroissant]

What sleepingdogs12 said really - I would definitely change location but wouldn't expect to get the same size of house.

Have you had any mortgage quotes, as we found lenders unwilling to lend past a normal retirement date (we relocated and needed a mortgage for a couple of years) so we only had a couple of offers to choose from. Unfortunately, mortgage lenders do seem to be cautious at the moment so I'd check that out as well before getting attached to a property.

I have relatives who live in the country, it does not appeal to me for all the reasons you've mentioned tbh. I like having neighbours as well.