I know the answer but...

do_it_today!

I still want to explore the options anyway...
Hubby & I want to stop working full time and we are planning to have kids in the next couple of years. We are in a 2 bed house but would quite like to move; we have seen a lovely 3 bed house today that hits most of our buttons BUT the mortgage is more than double what we have now and I would definitely have to continue working full time. whereas if we stay where we are... financially things are comfortable although we are not massively happy to stay here. I like the affordability of where we are and the options it allows but still eager to move... my mum always said cut your coat to your cloth. which I agree with yet we do have an urge to find the home we could stay in for a while.

what do you think?

ailuro2

Well, there has been talk of a housing crash for quite some time now...it might never happen but it is a real possibility.

Supposing this was to happen, and you rapidly found your new house was in negative equity, mortgage rates were back up at 14.5% (as they were when I first started out) and no-one wanted to buy your house.

Two options would be available-

go bankrupt and stay with your wise mother who cut her coat to her cloth.

or both of you work horrendously long hours to keep the little kids in their home, but not see the kids.

I think you DO know the answer, and who knows- if you overpay just now, invest wisely any extra money you have,then in a few years time you might pick up a bargain bigger house.

The market may continue to rise, but property is not a risk free investment.I don't feel it can contunie forever, most folks just don't earn enough to afford ever increasing house prices. I'd protect your security and be glad you have a great work-life balance sorted out now.

melg1973

Hi there, I am in a similar situation. Hubby trying to persuade me we need to move to 3 bed but I would prefer an extension or left conversion to provide another bedroom, this way I can still afford to go part time if/when we have kids - is that an option for you maybe?

Justie

If you're still only planning on having kids then there's no rush to get a bigger place - even when the first is born you only need 2 bedrooms and often not even that for the first 6 months or so. Things to think about - If the interest rates keep going up then will you be able to afford the mortgage on the new house? Where would you be if the housing market crashed (possible) or slowed down considerably (likely)? Could you stay in the house you're in but save the money that would be the new mortgage - that way you get to see what your budget would be like and in a year or two you may have enough to put down a bigger deposit on a new house. On the other side though - if you're going to have children you don't necessarily want to be making a move and increasing your mortgage at the same time as you go on maternity leave etc.

There's no right and wrong to this there are benefits on both sides. (and would you consider renting out a bedroom in the new house to earn a bit extra?)

Slinky

Hmm, you both want to work less, have kids, move to a bigger house with a bigger mortgage....... doesn't add up to me!

inkie

I would not like to be in a situation where I have to work to pay the mortgage. Stay where you are, overpay and hammer the mortgage down, as you say it's comfortable (see the mortgage-free in three thread on the mortgage -free wannabee board).
If and when the time comes that you need (not want) the extra space then you will have more equity and then less pressure on working all hours to keep a roof over your heads. Bigger house = more bills and more cleaning.
We are in a 2 bed house and manage with our 2 girls and are laughing when it comes to the mortgage.
Hope this helps

[Deleted User]

My db and his wife were in a small 2 bed with 2 daughters, they bought the house at the beginning of their married life and the babies were born during the following 4 years. . The children grew up there and they all enjoyed life with good holidays. The children are now adults and away from home. Staying there was an excellent decision for them as they will never have to downsize and I am sure they have a good pot of nest egg savings because their mortgage was paid long ago Their roots are nice and long

Stay if you can

do_it_today!

Hi :hello:
Alluro2
- no Im really not keen on being ball and chained to a massive mortgage

Melg1973
- we could easily extend into the loft space isnt the issue - next door is going to be let out - we have shared doorway -thats our main concern + the area and future flooding (I know Im parnoid! - but we are on low land and not that far from the thames)

Justie
We will save the cash if we dont move

Slinky - yes thats right I want my cake and eat it :rotfl: I really want to be mortgagefree yet live in my forever house!... infact I LOVE this house... just wish I could pick it up and move it somewhere else!

Inkie
I agree more rooms to clean is the last thing I want! trying to pay off mortgage in 3 years could kill me I think... but we are committed to paying a small chunk off in that time...

Kittie
Nice situation - the affordability of where we are does mean life could be balanced not over streched with work and resource to build a nice nest egg... I do worry about schooling but maybe we could home school or save enough to invest in private education

thanks for your thoughts and keep them coming