buying tiny place with small mortgage

lisyloo

There are a few of us, but I think people who don't have that mindset

I get the old style moneysaving, but housing is completely different to consumables where this normally applies.



Bear in mind that


a) there is no income tax or CGT on your equity

b) you get gearing
c) you need to look at what else you'd do with your money (if you have it spare). For example if your employer matches it if you put it in a pension that MIGHT just be a better opportunity as you can double (or more) your money.

cherryblossomzel

I was referring to the lifestyle choice of living in smaller spaces with less stuff. Not to investment choices. It's more of an emotional/psychological choice, rather than financial.

I think there are some people on old style who thinks similarly.

NaughtiusMaximus

korvin wrote: »

that is exactly my thoughts....I watched that documentary and thought how I already live like that. I don't want extra space to buy stuff. I don't want to buy stuff. I want to have more money for holidays and experiences. Just wanted to ask a question on this forum and see if there are any likeminded people. but the reactions really surprised me.
Thank you all who suggested 2-bed, it did make me think in that direction.

Which interestingly is the exact opposite of how I feel. I see it as having a nice spacious home (ie the place I'm living in for 48-50 weeks of the year), filled with 'stuff' I like, being more important than having more regular and more exotic holidays for 2-4 weeks of the year.

Bogof_Babe

Whether or not you collect "stuff", your son will need his own wardrobe and some space for his other essential things that most kids keep in their own bedroom.

If you did buy a one bedroom place, you'd have to make sure it had enough storage for clothing for all of you - even minimalist people tend to have clothing for all seasons, and several pairs of shoes.

korvin

we will buy a 2-bed house and have 2 more children. put them all together in one room hope you don't think that is "too selfish".
I need big living room and kitchen for family time. but bedrooms....I just don't get it. you only sleep there.
if I could, I would live in a tiny house with a big garden. but it is not possible in UK

Red-Squirrel_2

korvin wrote: »

we will buy a 2-bed house and have 2 more children. put them all together in one room hope you don't think that is "too selfish".

It is if you can afford to let them have some privacy but choose to deny it them.

Sorry not selfish, more just unnecessarily mean.

hazyjo

You never answered (I don't think).

Where would you all sleep if a one bedroom property

So now you're saying 3 kids in one bedroom. What if they're different sexes? Fine for a while, but certainly not long term. And do you not think they will want friends round, or their own space?

It's all sounding a bit Grandpa Joe (Charlie and the chocolate factory) to me!

Red-Squirrel_2

hazyjo wrote: »

You never answered (I don't think).

Where would you all sleep if a one bedroom property

So now you're saying 3 kids in one bedroom. What if they're different sexes? Fine for a while, but certainly not long term. And do you not think they will want friends round, or their own space?

It's all sounding a bit Grandpa Joe (Charlie and the chocolate factory) to me!

Ever heard the term humblebrag? That’s what it is, look how unmaterialistic I am.

tori.k

korvin wrote: »

we will buy a 2-bed house and have 2 more children. put them all together in one room hope you don't think that is "too selfish".
I need big living room and kitchen for family time. but bedrooms....I just don't get it. you only sleep there.
if I could, I would live in a tiny house with a big garden. but it is not possible in UK

Hardly minimalistic to have three kids
Like everything its a compromise, it should be pretty easy to find a two up two down that's had a single level extension in most areas that fits your wants but if they are done well your often find they are in the same ball park as a unextended three bed property.
We live in a small house 7 meters by 6 meters, thats on a massive plot (you do get them) the compromise was the mountain goat friendly gradient that the house sits on.

MaxiRobriguez

1) You'll have an immediate space issue with one bedroom if have a child. It might be fine for a few years but when he/she is a teen?
2) If you decide to change your mind, you'll find it harder to jump to the next rung of the ladder in the future if house prices continue to outpace wage growth.
3) If, despite this, you do choose to and can move, you'll be paying another round of stamp duty, mortgage set up, solicitor, moving costs etc that you could have avoided had you just taken the plunge on the bigger property in the first place.
4) Mortgage rates are currently at record lows, if they go up in the future the next house you might want to buy if you choose to move might be a bit cheaper but the monthly repayment might be too much of a stretch.
5) Inflation in the past has been a wonderful eater of debt.
6) Moving house is a rubbish experience and the fewer times done the better.

TLDR: If you really, really think you and your family will be able to stick to a one bed for the next 25 years and be comfortable then it's fine, but I suspect you've not considered your long term needs appropriately. If you re-think, really re-think and decide maybe you'd like to leave the door ajar even a little bit for a potential move in the future then it makes sense just to bite the bullet and go for the bigger property first time round if you can afford it.