Downsizing to release equity while young

POSSETTE

JennyW wrote:

We're the same! We're both 39 and have just downsized to a flat in a nicer area :j We had a 3 bed house to clean and run and with just 2 adults, it amounts to a lot of unnecessary work and expense. We moved on Friday to a flat and it's so lovely not to think about all those rooms I have to hoover and clean. It's also meant a lower mortgage and lower monthly repayments :T Plus we released some equity to totally transform the flat (new kitchen/bathroom etc), whereas before with the bigger property and mortgage, we never had enough money to do anything nice.

I may even get my new car at the end of the year :rotfl:

Life's too short and you don't know what's around the corner - I learnt that 2 years ago when my dad died. Worked so blooming hard and didn't even get to retirement to start enjoying his life a bit :sad:

I don't see it as going backwards, if it means a better quality of life for you and less stress, then thats not going backwards, it just means your taking control of your life and enjoying it. No point in trying to enjoying it when you're too old to be able to do anything.

So true....its ok looking at every last penny and where it goes...but that in itself can get you down..i agree its fun when you do find cheaper alternatives,i have done that, But you also need to have a life now..not when mortgage is paid up in as short a time as poss....i had an operation that went wrong,had loads of blood transfused into me...when i came out of hospital,i saw things differently, YOU HAVE TO HAVE SOME FUN NOW WHILE YOU CAN!!:j ..be sensible but be happy too,what is the problem with blowing a bit of equity on a holiday?? it relaxes you and that is worth more in the long run,than checking your outgoings every five minutes....and as for the cleaning of all those rooms:eek: .i couldnt agree more,its a quick hoover and dust in 6 rooms now,not a labourious trek through 10 rooms as before!:T

JennyW_2

POSSETTE wrote:

.i couldnt agree more,its a quick hoover and dust in 6 rooms now,not a labourious trek through 10 rooms as before!:T

i have 2 dogs too and lugging the blooming dyson up the stairs was a nightmare. As powerful as it is, it's heavy. Plus my hubby is in the Navy so 95% of the time I am alone - what a waste heating a whole house just for me and the dogs especially as we only used 2 rooms!

smiths84

POSSETTE wrote:

Hi..Im 37 and hubby is 44,and we have just downsized..best thing i have ever done!!:T we had a 4 bed detatched in a nice area,near to work convinient for everything,but it was costing us our lives!!.we had enough money to run the house and pay the bills,but we also had a loan of 25k to cover too,on a new caravan and newish car,and new kitchen.i was working 7 days a week to do this and he was doing all overtime poss.We found a brand new house ,3bed semi,next to an area i wouldnt have dreamed of living due a dodgy reputation,we sold our £177k house and bought this one at £138k.we have paid off all our debts,been on hol to Las Vegas and helicoptered down the Grand Canyon,:eek: had endless weekends away in our caravan,i dont work in pub at weekends ,so we walk the dogs more,and go out together.Its SOOOO much better.As for the area..its great,the people are so friendly,it has a wrong image,even the indian couple who run the shop have never had a problem with yobs,as there are none!!just knowing if i see something for £20 i can buy it with no probs is great..do it..you will see...good luck;)

Thanks so much - just what I needed to hear. We want, like you, to live now - work less, have weekends away, visit my brother in law in New Zealand; not wait till we're 60 (if we get that far - my dad died two years ago a year short of retirement).

Like you we took out a loan (£15,000 currently on interest free credit cards) to do up the house. Its been a great investment, but the repayments on that are sucking us dry - and those are in addition to rising fuel bills, massive water bills (cheers South West Water) a useless endowment policy (the compensation claim is in) and ever-rising council tax. I don't want to remortgage - its a mug's game - why should the bank have even more of my cash in interest?

In terms of "where the money goes" - for the record, we are a family of four. We don't run a car; we walk, run, get the bus, train and occasionally hire cars for long journeys. My husband's a full time teacher, I work in full time in broadcasting (part of the downsizing plan is so I can go part time.) Our kids are state educated. I make my own sarnies for lunch and penny pinch whenever I can. I am famously miserly. We don't smoke, rarely drink. We don't have the internet or a mobile phone. We didn't have a family holiday this year. But we are still living beyond our means and I am BORED with feeling guilty every time I pay to get the bus to work instead of saving 90p by walking.

I agree that all that stuff about "good" and "bad" areas is rubbish isn't it? People where I live are OBSESSED about the area they live in right down to which side of the goddam street you are on.

Thanks again!

smiths84

Bargain_Rzl wrote:

Hi On a side issue, you say you're "careful with money and honestly don't know where it all goes". Do you keep detailed accounts and/or a spending diary? Cos it would help to have a clear idea of where the cash is going and why, before you make any huge decisions like moving house. I can just envisage you moving to a smaller place and STILL finding that you're not quite sure where the money goes, IYSWIM.

I do understand what you are saying - but I think I'm looking for a life where I DON'T have to keep detailed accounts and so on.

I've been thinking about it and the biggest impact on our income is repaying a £15,000 interest free loan; trying to pay off my £100,000 mortgage in 13 years (have cashed in useless endowment); and paying the household bills. Its all house related which is why I think downsizing makes sense.

smiths84

F_T_Buyer wrote:

Having a life is way more important than a flashy home IMHO. I think you're right with your priorities.

Have you considered renting? Usually you find larger houses a lot cheaper to rent than they cost to buy (interest on mortgage compared to rent). Maybe this is an option to consider too...

That's a REALLY big step. I'd feel wierd renting. I'd be really worried about missing out on house price growth (which in my case has way outstripped the cost of the interest on my mortgage).

POSSETTE

we are SOOO on the same wave length!!:-) you dont want to be checking your outgoings every 3 hours!!.my second job at pub just earnt enough to cover a cc bill, but it was hell having to get up for work everyday,and when you get home your !!!!!!ed!!,:sad: then you feel bad coz you dont want to go out for walk with OH..its just not worth having the big house and big bills,when you can cash it all in!..where in the country are you? would you make a big move,say from down south to midlands etc.your money goes a long way then.We claimed on our endowment too,my OH said not to bother as he didnt think we would get anything!!HA:shocked: ..we got £4500,which helped bigtime.We also left behind a water rates bill of £350 a year,we are now on a meter using any amount we want(not tight with it!) and we get £110 yearly bill..good eh?..anyway cant stop here chatting..got a holiday weekend in Buxton/Bakewell to go to today!.get that for sale board up,you smiths.:wave: