Need some advice regarding options.

DandA_2

Hello I have been doing some research and that brought me here, so I thought I would ask you kind people for your expert advice on what option to go down.

The situation we are in is our home is to small for us and we need a bigger place but we love the area and have a huge garden just weary of moving BUT that is one of the options. We are both earning and hubby pays a mortgage on our home (has approx 14 years left maybe less).

Here are our options;

1) Get a loan in both our names from the bank or re mortgage but will that only be in his name? (As he had house before I moved in 10 years ago) and extend above the garage for that much needed extra bedroom and extend kitchen, add another room next to kitchen then a conservatory. Doing this we will have to pay out more money every month. (I hate debt). (Hubby prefers this route)

2) Get more money like above BUT buy a larger property perhaps even buy one closer to eldest school she will be starting in September but doing this will be so stressful finding that perfect home again in a nice area and that area where her school is, is very expensive homes in region of 300k (ours is worth shy of 200k at the min for 3 bed). (My mother suggested this route)

3) Get a joint mortgage and buy a bargain property (after doing research about the property/house prices in that area etc etc) and do it up and sell it on, in hope to make a profit and keep doing it until we have made enough profit to pay the bank back after selling and use profit to do our home improvements? That way we wont be in debt in the long term? (This is what I want to do) The market is picking up now and more first time buyers are being accepted for mortgages according to my research but they don't want to be spending loads more on doing the property up? (This is the route I want to go down)

Any suggestions?

martinsurrey

With both you and your partner working, and with kids, becoming property developers in your spare time will more than likely kill you (especially in the current climate where you can easily LOSE money on developing) – so I would rule out option 3

Option 2 incurs a lot of fees - £3k EA - £9k Stamp (on £300k) – say £2k legal’s = £15k

Option 1, if possible, will add a lot of value to the house you have, while saving the above fees, plus you get to design it as you would like it, but you will be living in a building site.

I prefer the sound of option 1

notanewuser

Buying other houses is going to incur costs which you won't see a return on (solicitors, stamp duty etc). If you like where you live and the plot your house is on, I'd go for option A and spend the money making it the house you really want.

Seabee42

If you can genuinely extend your home so that you will be happy to continue to live there then this should be the cheapest option.

That being said do you know good builders could you live through the expansion?

If you move and purchase a house over the 250k threshold you will loose a lot of money in costs and this is hardly a stress free option either.

mummyroysof3

We in a similar situation and I would go for extending if it was me. Our house isn't easy to entend due to lay out and with 3 young children it would be too hard to live in though

scottishblondie

I would extend the current property. No solicitors fees, stamp duty etc, and you should be able to add more value than the money you are spending as long as you are careful.

Strapped

I would extend. But as you have kids, I'd try to rent somewhere nearby during the works.

DaftyDuck

Route 3 is what I tend to do myself, but on larger properties. There's little margin in the market at the moment, it is very demanding work, and there's every likelihood you will lose money. Lots of it. Unstoppably. Unless you know what you are doing (and I sometimes do, often don't) this is NOT a route to follow. I don't have kids either. I don't have debts either. I want to move every 3 years anyway (job relocation), and get all my costs and more paid by the company I work for. Twice, because my wife does the same. Even with all that benefit, it can be hard, and doesn't always raise a profit. I know it look like a route to riches on the telly, but it isn't. The market isn't growing fast, it could still fall, and could even still collapse. In my opinion, you might note a slight reticence to recommend route 3 :D:D

Route 2 is more difficult to judge, as you'd need to weigh up so many personal factors, and compare your current home with others... etc.. etc... BUT, in that para, you do mention finding a "perfect home"...

So, Route 1.... You have a good home. You have a large garden. You can extend. That's nearly always best value-for-money. With a large garden, the property value should increase (neghbourhood needs to be considered; don't want to be the only super-huge house on a street). As for a "perfect" house, there's none better than one you've designed a bit of yourself. Withe your route 3, you were working in the hope of profit (no certainty), for someone else to benefit from the upgrade. Here, you bank the capital for the future (when you do sell), you benefit from the extension in the meantime, you get what you want, and you get practice for doing route 3 next time, when you have the experience (and slightly older DandA-ites...) Perfik!

There is stress and mess from route 1, and you have to accept this, but you are more in control in this situation. A good builder will control the mess for as long as possible, so you shouldn't have too much disruption at your home. There will still be more than you ever, ever could possibly imagine.. :D:eek::eek::D:D

Route 1 would be my bet, 80% route 1, 15% 2, and ~1% route 3

lincroft1710

Everyone has suggested Option 1,so I'm going to............agree