Property/DIY
To move or stay put
jumpingbean1810 · 28/03/2023 06:20
I've had itchy feet the last few years and somewhat impulsively put house on market. Had two offers on first day of viewing, one at asking price. My house is in a good location, good condition and I've added as much value as I can to it. I've seen a fixer upper I like which has great potential but needs a lot of work.
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I"m 50, single income with one dependent, work full time. I'd need to borrow £100-150k to move and renovate. If I stay put, I can pay off mortgage in 6-8yrs. If I move I'd be looking at 15yrs but end up with a property worth about 200k more than current home in today's miney
With interest rates, building costs and living costs so high, my head tells me to stay put. But my heart is telling me to move. What would you do?
MsPrism · 28/03/2023 06:58
In your position I’d probably stay out and just go away for a few weekends to satisfy your itchy feet. I would worry about he cost of materials, availablility of trades, and I just don’t have the energy for a lot of diy.
if the new property was a potential retirement/downsizing project that would fund my retirement I might be tempted though.
Campervangirl · 28/03/2023 07:29
I would stay put.
I'm late 50s, just paid my mortgage off and I have to say it's very freeing.
If it takes you another 15 yrs to pay off your new mortgage you'll be heading to retirement, maybe thinking of downsizing?
Then there's the upheaval of having all the work done, perish the thought 😉
jumpingbean1810 · 28/03/2023 08:56
Thanks. I have to admit just the thought of packing up the house to move makes me feel tired so not sure I have got the energy I had 10yrs ago to do a project. And I do love the idea of being mortgage free, but thought I could fix this other one up, sell it in 10yrs, downsize to be mortgage free and hopefully have 100k profit to add to pension. But that's alot of ifs, maybes and stresses in between!
Cottipus · 28/03/2023 10:52
I get that itchy feet feeling, my house is fine but I’ve had that feeling for years. We probably will need to upsize as the kids get older but we can manage for now. I’ve booked some holidays and embarked on a big declutter to scratch the itch!
If you can pay off your current mortgage 7/8 years earlier than the new house, can you put the same amount into your pension when you no longer have the mortgage repayments? With compounding how does that compare to the gains you may make on the new house? Plus you’ll have stamp to pay on the new place, and stamp on your downsizing house after that. You may even be better off financially not moving, plus avoid the moving and renovations hassle, as long as your current place will suit you in retirement.
It’s also fine to wait it out a bit too, to see if building works comes down in price or something needing less work comes on the market.
jumpingbean1810 · 28/03/2023 18:23
Thanks everyone, really useful advice. I did ask a financial adviser and he said there was no obvious answer as with SDLT and increased interest rates, pension saving may be the safer option. Daughter likes the other house as its 5min walk from town and school (compared to 30mins currently) but she'll be off to college in 4yrs. I think at least for now sitting tight makes sense.
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