Don't know how much to spend?!

[EggyBread4me]

We are not sure what to do at the moment. We sold and went into rental in June last year. We We have a very good deposit to put down, and with a mortgage as well can spend up to 950,000 on a house. Or we can not get a mortgage and can buy in cash for about 700,000. Not sure what to do for the best at the moment. Being mortgage free would be nice, more to spend on holidays 😁 We can get a nice enough house where we are for 700, but nothing 'wow.' What would you do? If it makes a difference, we have two boys (8 and 5), husband is early 40's, and I'm need 37.

You spend what you need to- a good garden, school catchment, study??? No one can spend for you. Mortgage free is not something I’m aiming for but maybe that’s because it’s too out of reach.

Personally, I'd take out a modest mortgage as you're still fairly young to be mortgage free. £8-850k budget?

Easily covering your bills so you can enjoy the finer things in life but you haven't limited yourselves to a house you aren't wholly in love with.

Plus you'll gain well in equity on a larger property.

The mortgage and larger property seems a better investment for sure. Feeling pretty fed up with it all now, there's no houses for sale to choose between 🙁

Like a PP I'd go somewhere in the middle. Don't max yourselves out but buy something a bit better than the minimum you can afford. And I guess if you're in rented you can be a bit choosy.

Your kids are young so assuming it's intended to be a family home long term i would use the mortgage to get something you really like and will grow with you.

If there’s nothing much for sale maybe the market will dictate how much you spend? What were your reasons for moving?

We’re in a similar position - both 42 with a 6, 4 and 2yo and savings to pay off the mortgage. We’ve decided to bite the bullet and build a new house which will need a hefty but affordable mortgage. Being mortgage free now didn’t make sense to us. It would mean having disposable income that we don’t spend. Interest rates are negative where we live so having savings in the bank costs money. The stock market is unpredictable. Buy to let is more hassle than it’s worth. We figured it made sense to invest where the whole family will be able to enjoy it. The new mortgage will be paid off before we both retire. Also the capital gain will be higher the more expensive the house - assuming prices rise long term which I have no doubt they will. We figured that way we call sell up or pass the house on to the kids eventually so they each have a decent chunk of capital while enjoying the investment in the meantime.

Good luck with your search - I hope you find something soon that you love!

As a single parent I opted for mortgage free for security and greater disposable income when I was 30 but there's only myself and DD and our home will still be a good size for me when she is grown and moves out.

In your shoes I might opt for the larger end of the budget and downsize once the children are grown up. But that assumes you would be happy to move from a home your children had grown up in.

I'm sure you are tied to your location for work and other commitments but you could buy this windmill in my County for that budget which I absolutely love.

Thanks for all the advice, it really helps putting it down on paper I think!

The lack of choice is the main issue, and I'm so desperate to get out of this tiny rental! We'll just wait it out, and assume we will know the right house when we see it 🙂

41HPandTheNeverEndingBedtime - that windmill 😍