Should we downsize???

stokelass

I am writing this as I really could do with a little friendly advice about possibly downsizing. I am only 26, but have always saved all my life and my husband is a little older so also had some savings. Along with my good job earning a good wage (and after some good renovations on a couple of properties), we were able to buy our dream home of a rural four bed detached house with a huge garden and excellent neighbours / schools etc. All of our spare money basically has always gone on the house. Our mortgage is now only £80000 on a £300000 house. BUT... I really began to hate my career and travelling associated with my job, so after I had my baby (18 month old) I left work. I am now retraining to do a job Ive always wanted and I am very happy. But, I am now told I am over qualified for most jobs (but not enough for my new career!!!) so I am working part time in a shop to make ends meet. Here's the thing... we cant afford to live in this house and pay the bills, let alone go out or have savings / pensions etc. as things stand. I am torn between waiting for maybe a year to see if things improve (we have no other debts so could possibly manage) or do we downsize and possibly be mortgage free??? I really love my house but I also want to enjoy life...What should I do??? After all, most people my age have got bigger mortgages on a lot smaller house. I feel i should be able to manage this debt...HELP??!

JennyW_2

I would downsize and be mortgage free. There have been a few discussions on here recently about this (I myself have just downsized). Many of us came to the conclusions that we don't need big houses with loads of housework and strive to keep up with the jones's.

PoorDave

My view would be it depends how big a family you plan on having.

If you're going to have loads of children, then 4 bedrooms might be necessary, if not then they might not. If you move somewhere smaller you might have to move again if you family grows, which would be a disruption to everyone concerned.

Maybe more details about why you think you can't afford the house you're in now might help. An 80k mortgage sounds kinda small to me (no offense!)

stokelass

yeah i know it sounds small compared to the average. But, in real terms £80 grand is loads to find when you haven't got it!!! My husband earns a good wage (not great but ok!) but with all the bills and childcare costs and everything else, I just cant afford it at the minute! I genuinely dont know how people manage... we have had to put the house on to interest only at the miniute so we can pay the mortgage, but we still are spending over £100 per month more than we are bringing in.

I know the house is a great house to keep but is it worth putiing my life on hold just for the sake of a house?!

For the people that have done it, did you think it was a good move to make?

Poppy9

To me an £80k mortgage sounds horrendous (I've a £35k on a £300k house). Will you manage to have a decent size family house near good schools for £220k? School catchment areas is very stressful so you might be exchanging one stress for another.

I gave up a full time job to be with DD and have never regretted it. Home improvements, new cars, foreign holidays all went by the way side but it has all been worth it. Now we are comfortable (dd 11) and have our holidays and home improvements but we've never got back into the posh car rut, to us it's just a waste of money and low priority.

Do what you feel comfortable with.

ps if you are looking for another job councils always looking for Lollypop ladies!!

stokelass

yeah. Seem to be able to get a good sized 3 bed semi (nicely decorated etc as well) for about that price. also, some good schools nearby too. Really, would prefer to be with my family than cleaning a huge house and struggling to pay my bills. Just all seems a little scary. I guess realistically I should make the move. £80 grand scares me and I suppose I would hopefully be hastle free without a mortgage!!!

I think I could make a good lollipop lady...might give that one a go!

[Deleted User]

stokelass wrote:

For the people that have done it, did you think it was a good move to make?

Whether it's a good move or not, depends on the individual's circumstances. What's been good for some may not necessarily be good for yourself. But it sounds like you may be trying to convince yourself that downsizing is what you really want. Personally,having downsized myself, I feel it was a good move - but than I am a lot older than you and my priorities may be somewhat different.

This clearly is your decision (or dare I say jointly as you do not say anything about what your husband wants or indeed what his views are). But may I wish you good luck in reaching your decision and hope it will turn out to be a happy one.

mrs_deadline

Childcare costs pretty much soak up any extra income you earn for about the first 8-9 years, so your idea sounds like a no-brainer to me. Plenty of time for a career later on, as we'll all have to work till we're about 96 to beat the pensions crisis

Bargain_Rzl

If I was in your position, and I could downsize to a house which fit all my criteria for the long-term foreseeable future (i.e. in the right area, with any more kids you might have, and/or a guest room if you feel you need one) then YES I would downsize. A crash in the housing market is a real possibility; a downturn probable, and a slowing inevitable. I'd be tempted to realise the fruits of the house price boom, as long as it wasn't going to come back and cripple me in future (i.e. you buy a 2 bed house and end up having another 5 kids!)

lilyann1

I would downsize too in your position.
I would rather have a happier, less stressful life and be able to do things with my kids,than scrimping and saving just to pay the mortgage.
I would look at 3 beds and possibly have a tiny mortgage on it or mrtge free like you say.
You have thought it out well,some people ignore the fact they cannot afford their mortgage and get into all sorts of financial problems when its too late!!!

JennyW_2

stokelass wrote:

For the people that have done it, did you think it was a good move to make?

for me and my husband, yes, downsizing was the right move for us, however we don't have kids (just 2 dogs )

if you are that stressed and having trouble coping financially, then perhaps you and your husband should have a serious discussion about it. I know I would as I don't like to be stressed about money.