Advice please re house move.

Jodyl

Hi. We are 33 yrs old and have 350k house with 15k mort left. this could be paid in next 18mnths. House is not in fantastic area and so is about at the ceiing value for this area and will now only rise slowly in value. We are happy with house and do like the idea of been mortgage free although thinking ahead we have no decent pension fund plans.
Dilemma. Seen another house 435k in a fantastic area that will def continue to grow in value with no ceiling value. We would have to take on a 110k mortgage to get this house. It would be quite a struggle but long term we see it as been a good investment.
What would anyone advise?
1. Stay put. be mortgage free. but house price not rise much
2. move. 110k mortgage. struggle. but house then be worth significantly more than paid.
Please please help.

hall2056

Hi, we have just gone through the same thought process as yourself. However ours was triggered as part of a company relocation.

Our dilema was, should we buy like for like or push ourselves, on the basis that it will be a good investment. We went for a property that was £85k more than ours, in a nice area, which will hopefully increase in price substantially over the next 10 years!
Our final decision, was based upon the logic, that if you are going to move, make it worthwhile. We don't intend to move again for 10 years, and this is also our timeline for paying off the new mortgage.

The choice is yours, but don't forget to allow up to £20k for moving costs.

Good luck

hall2056

meanmachine_2

I'm sorry I don't follow your logic.

If it's your main residence, how is it an "investment"? What are you planning to do, downsize at retirement?

Anyway, I'd say you're in a v fortunate position to be mortgage free at 33 with such an expensive house under your belts. So well done. Not sure how you managed it though...

But 33 these days is the age most of us less fortunate schmoes have to START a mortgage, so you've got plenty of time left to trade up.

A 110K mortgage for someone in their early 30s is small fry these days. Don't forget the killer stamp duty, though. That's why the government loves high house prices...