DW and myself (both 26) have DD (1) both in professional jobs combined income 68k pretax with promotions likely for both of us in the next year to 75k joint (including 3.1k non taxed disability benefit for me). Family currently helping out with childcare till DD is 2 and then nursery at 1k pcm. Birmingham area.
We bought first home- 3 bed (small third bedroom) pre war semi in Quinton, main road but 100ft garden and parking, with 4 year fixed remaining (£900 a month) mortgage 228k left with estimates between 60-80k equity if we were to sell up today. Area is sleepy and suburbs, good bus connections but no high street or social life immediately. 4 miles into Birmingham and I cycle in most days, DW has family car. Good forest school down the road.
Looking to the future the house in current form likely not suitable for 2 grown children without a loft conversion (neighbours have done so but 10+ years ago and house does seems cramped). We also miss the social life of neighbouring Harborne where we rented after university. Schools slightly better elsewhere but not considerably.
We would be looking at around 350-450k minimum for a decent 3 bed in a nicer family area that has some social life (Harborne or Bournville). Just about affordable but we wouldn’t get close to the mortgage deal we have at the moment and would be a substantial increased outgoing.
i think we have 3 options:
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Try to sell quick and upgrade once we have the promotions settled - DD not at a school but would need to take nursery fees into account.
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Wait for DD to get to just before school age so no nursery fees but could delay having a second child and the house price jump could become greater.
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Stay and make the most of current house (loft conversion, garden room, office at bottom of garden etc.). Likely cost 100k plus at current building rates and would need to remortgage anyway.
What would your thoughts be?
More context can be provided.
thanks!