Partner wants *much* bigger house

Mojisola

Logan99 wrote: »

I have suggested (as getmore4lesss pointed out above) we save for a few years and at least give ourselves a cushion should anything happen to our jobs etc.

The problem is the new development that we are talking about is due to go on the market 6 months - hence it coming to head now as it is presented as an opportunity we will miss out on.

Save like mad for a couple of years until the houses on the new development start to be resold - all the estate issues with the builders will be sorted by then and any problems with the houses will have come to light and been rectified - win-win for you.

getmore4less

I can understand there are circumstances where doing the trial run is difficult because there may be expenses you can't give up like if living with M&D you have to go out.

In this case the trial run is from an OK/stable base and is to prove to yourselves you can afford the considerable change in expenses not to build up an contingency fund.

You have 6 months to prove you can do it and will have well over £6k in the bank if you can.

If you start the cutbacks now they won't be a shock when the first mortgage payment goes out and you have nothing for a food shop.

I think you should go for it and get planning and do virtual paying for the new place now.

Give you have not been saving what does the oh think needs to change to make this happen.

Where are the costs to move coming from?

Grezz24

if you decide to buy at a new build have you looked at the help to buy scheme. you would need a smaller mortgage amount that way.

lisyloo

Suprised no one has picked up on the potential extra child.
Aren’t they horribly expensive?

Logan99

Hi, thanks again - yes we did try to save but its hasn't quite worked out - as for the moving costs and furnishings, again a cost that we do not currently have savings for.

As for a second child, well, they're not *too* expensive as having one offset our previous lifestyle so we don't really go out! if that makes sense - but the main thing is childcare when they are toddlers - we both work and that was setting us back the guts of 500 a month - so yes that will be factor for 2-3 years.

I think ,my partner thinks that if we have to find the money we will find a away, whereas if its choice to save - we wont. For me however although i see some logic to that , im not convinced - and the consequences of being wrong could be catastrophic, if i could see it working for year on a dry run I might be prepared to take the risk - but right now - i'm still erring on the side of caution.

Logan99

.. also my suggested plan was to save hard for 5 years and then keep the savings as a buffer against job loss etc and then commit to the larger mortgage. for 20 rather than 25 years. thus the term was the same. Not sure that makes any sense,

[Deleted User]

Logan99 wrote: »

my partner thinks that if we have to find the money we will find a away

Ah yes. Nothing overcomes the harsh reality like blind hope and crossing your fingers.

The money fairy always provides if you wish hard enough!

macman

Joint income: £3,500 per month
Outgoings: £2,000 per month.
Savings: zero.
So is the residual £1.5K per month just disappearing into thin air? Or perhaps you need to revisit your outgoings calculation to see where the potential savings of £18K pa are going?

getmore4less

Tell them if they really wants to reserve this fantasy house in 6 months.

if between you cannot save £1k per month it won't happen.

The "if we need to find the money we will" has started already you need £15k for SDLT on a £500k house and another £2k for the EA to sell your £200k one if you are good at knocking them down to 1%.

You want £20k in the bank to move if you want to stay at 80% LTV.

You could raid the £100k equity for around £25k and be 85% LTV

I guess that's the real plan raid the equity

Do you have a 5-10 year budget forecast if not time to do one.
(DO you have a detailed 1 year budget/plan?)

Trial runs don't need to be a year.

You start with the first month and build up to where you become confident it is working if these potential properties are 6 months away that's plenty of time to adjust the budget to one that is working.

Your problem is you have not been saving so finding £1k won't be easy if you have already cut back on the first kid.

Time to write up that 5 year budget

kerri_gt

Logan99 wrote: »

As for a second child, well, they're not *too* expensive as having one offset our previous lifestyle so we don't really go out! if that makes sense - but the main thing is childcare when they are toddlers - we both work and that was setting us back the guts of 500 a month - so yes that will be factor for 2-3 years.

.

Without sounding too much like treating your child as a commodity, you offset the cost of child 1 against not going out like you used to before children. However you won't see those 'savngs' with child 2 as you will not be offsetting the cost vs lifestyle. So child 2 will be a direct additional expense (bar anything you already have from child 1 such as clothes, nursery furniture etc)