Advice needed - to move or not?

EGGP1878

Just after a bit of advice.

My fianc!e and I bought a 2 bed apartment on Liverpool Waterfront just over 2 years ago.

We paid £175k and got the mortgage over 35 years.

I have just taken out a new 2 year fix and brought the terms down to 25 years, we owe £160k.

We have just had the apartment valued at £240k so it has potentially risen £65k in just over 2 years.

We have an AIP for a £320k mortgage with our current provider.

We own an underground parking space which was in with the purchase price, we have always only had one car and this has worked for us.

However, my fianc!e has just got a new job which will see her work much further away from our home, therefore we will now need 2 cars and will have to rent an additional parking space for £150 a month.

Our housing costs living in the apartment from this month are therefore;

£711 - mortgage
£220 - service charge
£150 - parking

Total = £1081

Now for £1081 a month we could move up the ladder a fair bit and get a bigger mortgage and go and buy a house.

Some people are saying we are absolutely mad for thinking about selling the apartment because of where it is and the money it's already made.

Others have said the complete opposite and that we are absolutely mad for spending as much money each month of an apartment worth £240k when we could be living in a £340k house for the same price.

Now I appreciate nobody's psychic and can say exactly what's going to happen with the property market, especially in the exact area we live, but any input would be appreciated as we just can't make our mind up.

No other area in Liverpool to the best of my knowledge has seen property prices rise like they have on the waterfront, so my fear is that I sell it for £240k - buy a house for £340k and then in 5 years the apartment is worth more than the house!

What would you do?

TBagpuss

Look at it as a home and not an investment, and live someone that suits you and that you can afford.

keith969

Sell. You're paying £370/mo that you get nothing back in the long term for.

fudge7000

I would say sell as well, but don't check the property prices of the flats ever again...
£370 per month (currenrtly spent on nothing) would go quite a way towards a new mortgage!

AnotherJoe

Another "sell". Whatever you put into a good home in a good area will appreciate as much as a flat*, and you get to enjoy the benefits rather than spend £370 a month for nothing and as pointed out thats a fair whack towards the new mortgage anyway

* and in a house price depression a house will likely fall less than a flat, proportionally.

cjm888

Its another sell from me. We are in a similar position and we are "cashing" in as well and moving to a much bigger family house.

ellie27

Its about what you want/need.

The £370 per month, I would consider that money that could be better spent elsewhere or saved - I would sell up to get rid of that expense.

Do you want to raise a family in the next couple years? If so, then perhaps that would be the another reason for selling now.

blackshirtuk

I would say sell as well, but just check your mortgage is "portable" or you could be in for early redemption charges.

EGGP1878

Thanks for the feedback. It was a pretty unanimous 'sell'.

We have already checked, the mortgage is portable and we have an AIP for the bigger mortgage.

We love living on the waterfront so might just completely disregard every bit of advice you have all given, but we're going to decide when we get back from our holiday.

Thanks again!

ElsieMonkey

You could always just stay living in the flat for a few months with your partner doing the new job, see how you feel about it then once you are actually paying for the extra parking space etc., check your partner actually likes her job and wants to stay in it etc.

We live in a flat (NW London) and pay £250 p/month service charge. It's a listed building and it is very well maintained, but I do think it's wasted money. We're selling up, cashing in we bought for 225k in 2013 and selling now for 405k), moving out of London to a house. Prices will always go up (and down), so don't think of the money you could make in years to come on it, think of what you have already made, and if your circumstances/priorities call for a house elsewhere then be thankful that you've made some money that will allow you to move on with your lives. It's all about whether you look at a house as an investment or a long-term home. It's nice to have both but no point chasing the money hoping the flat with keep gong up in value if it's going to hold you and your partner back in living the life you want together.

Person_one

EGGP1878 wrote: »

We love living on the waterfront

So stay! Money isn't everything!

You'll know very clearly when you're ready to leave the city centre and head to the suburbs to buy a lawnmower and start worrying about over-filling the wheelie bin. Until then, enjoy your apartment.