Should we downsize???

Penny_Farthing_2

Hi SL

We are in exactly the same position as you except we can just manage the bills and to get by but not much money for fun and I don't love my house 100%.

What we did was try to clarify the 1 million thoughts buzzing round. We did Martin's budget thing (a REAL eye opener). Then we got a huge sheet of paper and made a kind of mental map drawing under the headings Finances - current situation/ cost cutting/ cost to move (do your sums here)/ future situation when downsized (pick a max buying figure including works to new house)
Other headings were: re doing up current house(still needs it), financial options (interest only + sell later/cashing in endowments etc,and pros + cons of staying and moving

Your own map would have to suit your situation but we found it really helpful to get every last detail on paper so we could see the whole picture.

I really sympathise with you. It's so stressful. I hope you work it out.

filo_2

i would downsize in your position (as i currently am doing).

i was unsure about selling a flat once and a friend said to me that i should put it on the market at a price that i would be very, very happy with and let the market make the decision for me. i did so at about 20% more than what i thought was a fair price and i sold it at very close to asking price.

it doesn't cost anything to speculatively put your house on the market but there is the hassle of keeping it immaculately clean and tidy for viewings and also the possibility that some of your neighbours' attitudes towards you may change a little if they find out you intend to move away.

you must also add up all the costs associated with moving (they are considerable!) and work out how much better off you will really be.

if you buy a house with potential to increase value (eg room for extension, potential for loft conversion) then at least you could leave yourself the option of upsizing at a later date.