Two buying options: Both cutting costs for us, but not sure which is right?

HappyGo

You may remember my earlier thread about whether to 'check out' and downsize to a smaller property with a much smaller mortgage (in a cheaper location away from the city) or stay put, as our period house in the city suburbs is going up in value so fast.

After much deliberation over the weekend, we've decided we definitely want to sell our home (and we'll get at least £460K – leaving us with £100K equity after cost of moving), but now we're faced with two confusing options.

There's just the two of us. We have no children by choice. And we both work from home, so still need a certain amount of space to be comfortable. I.e. Four bedrooms would be best.

Both of the following options would mean cutting our costs, one more than the other. We're stuck! We don't know what to do!

Option one: Downsize to a second-hand three bed detached home with single garage on a nice plot with south facing garden for £300K. It's small and would be a squeeze, but our mortgage would come down to £1,000 per month, and we'd be able to be mortgage-free by the time we're 45. It's a very sensible buy, but we're concerned that we're not 'in love' with the property, even though it's the best possible thing we've seen in 12 months in that area, and of that size and price.

Option two: Buy a brand new build, four bed property with double garage and fantastic spec and room sizes for £430K. Similar wow factor to our current period home with great room dimensions and high ceilings. We've been to see it four times and we absolutely love it. We'd reduce our mortgage to £1,400K per month, approximately.


For a bit of background, we both earn good money and have decent pension and savings underway. We're aged 38/39 respectively. We hope to retire when we're 55 and be mortgage-free by then as well.

I know the sensible option would be to downsize and go for the cheaper property. I think we'd be very happy there. However, the bigger property is drop dead gorgeous and has plenty of space for our needs. It's also on a great plot, on a spaced-out new estate on a great established road that's very popular.

What's more, we wouldn't have to do a thing to it. Whereas with the three bed we're already coming up with plans to extend and improve.

Argh!! What do we do?! I know this is ultimately down to us. But I'd love to hear from people who've been in similar situations and can advise.

getmore4less

Move somewhere MUCH CHEAPER or don't bother moving.

Doozergirl

The second house is less than 10% cheaper? With the costs of moving and all the new furniture that inevitably goes with moving, then how much are you genuinely saving?

You may love it, but is that really fulfilling your own brief?

It's amazing how much space people think they need, especially if downsizing, of sorts. How many tables can one person sit at in one go?

I can recommend a documentary called 'Minimalism' on Netflix if you want to ponder what you think you need.

lady1964

Could you go for the smaller house & have a home office in the garden?

My DH will start working from home soon & that's something we're thinking about so that we keep our 2 spare bedrooms 'spare' for when we have guests.

Zeni

You want the second house. It's clear from your post that you do, and I'm guessing while with the first you would save a lot of money you may end up regretting not getting the house you clearly love. If you can afford it, do it. If your stuck on the money and just cant justify it why not hold on or a little while longer ansd see what else comes up as it doesn't sound like your in any rush to move.

HappyGo

Thanks for all your kind replies! I think I love the more expensive house because it's done and has an impressive hallway and everything is well designed. It has the same magic as my current home.

But we're not going for it because something doesn't feel right. It keeps us on the same treadmill as now. It keeps us stressed and working long hours. We are moving to get away from that and enjoy a slower pace.

I think I'm being silly. I will gain far more happiness by having less pressure and stress than a big impressive house. Classic rat race trap.

And we love the idea of a garden office, superb idea and one we could sort almost immediately.

As for minimalism, I love this concept and I must admit - we were at our happiest when we lived in a tiny studio flat. Gosh that was wonderful. No stress, more holidays, less stuff, more time.

I think I've figured it out!! Thanks all