Probably a stupid questions but should we downsize?

davilown

So in a nutshell:

Property value £600,000, large detached 3/4 bed bungalow in a really nice village, backing onto the village green with great transport etc. equity in the region of £400,000. Mortgage,CC and loan £2,000 a month.

Do we stay (mortgage 23 years left, loan 5 years)

or move to a local, desirable town, close the harbour but into a semi-detached 3 bed for OIRO £350,000 or have a very small £50,000 mortgage? paying off loan (house renovations).

we are in our early 40s, had kids very young they have already left home and moved. Both in secure jobs with income circa £80,000 p/yr

Any opinions gratefully appreciated - the opportunity to be mortgage free is very tempting!

G_M

Where do you want to live?

davilown

G_M wrote: »

Where do you want to live?

I'll be honest I like both the areas, but my OH is keen to move due to 'not liking' the bungalow still after 2 years.

I knows its a very privileged position to be in to become mortgage free but that feeling of, ' I've spent everything (time, money, sweat, blood and tears renovating it) moving up the ladder just to go down again,' lingers on!

hazyjo

I did something similar. House sold for £515k, bought for £430k. I was 47. Took out a £50k mortgage (plan was to be mortgage free, but prices in Leigh on Sea went up and Chingford had already had its mad price increase and £50k got me what I wanted).

BUT... I moved to something better in a cheaper but nicer location, further out of London. Had a 3 bed 1930s terrace, now have an Edwardian semi (2-3 beds, nicer garden, parking, downstairs wc, etc).

I have taken the risk of buying somewhere where I think prices will rise higher than other areas (presuming they go up again at some point) meaning we can have one last move out to somewhere like Frinton on Sea where it's cheaper again. If prices stay the same, it won't make much difference, we could afford to buy there or stay put.

I wouldn't be buying in a cheaper area which wasn't hugely desirable as I do hope to release some equity in the future and be able to afford to stay in a nice area.

Mortgage free ain't the be all and end all at this stage in our lives - if I inherited £50k at this stage, I'd not pay off my mortgage, I'd probably use it to afford to go part time, or extend the house.

I don't have kids.

It's all about quality of life, but try not to lose too much equity at this stage.

pinkteapot

Got to be honest - I'd never go back to semi-detached having been detached. I'd worry about future noise if I get a bad neighbour. Not that you can't suffer noisy neighbours in a detached house, but at least it's not immediately on the other side of your wall!

davilown

Thanks for your reply - that’s great to hear. Both villages are very desirable but for different reasons. One is on the Southdowns border, the other is in Chichester Harbour so really nice locations.
Minimal changes for commutes as well

RelievedSheff

I would move to the detached with a small mortgage.

We will never go back to having attached neighbours again. Once bitten twice shy and all that.

If your OH is not happy with your current home after two years he never will be.

hazyjo

PS options 1 or 3 for me. Would forget 2.


Bear in mind it cost me around £20k to move.

Smodlet

Which location do you prefer, OP? I agree that, if your OH is not happy after 2 years, he/she never will be but you need to be happy too.

Is there any room for compromise on area, perhaps to something you both prefer, even if the commute is extended a little bit?

All I can say is, hold out for what you want; if you don't, you might regret it.

All the best to the two of you.

AdrianC

£2k/mo on a £200k, 23yr left mortgage plus cards and loan with 60mo to go? To live in a house you don't both actually like, and that's way bigger than you need now the kids have moved out and are standing on their own two feet...?

MSE mortgage calc reckons just over a grand a month on the mortgage, so your loan and cards are swallowing the thick end of a grand a month...? How much do you owe on them...?

Stop thinking "but down the ladder!" - that mindset is costing you a grand a month, before you consider your wellbeing...
Think about prioritising your lives... Downsize, be happier, stop feeding that substantial debt monkey.
If you prefer the larger place, with a £50k mortgage, then you could massively overpay without spending more than you are now, and clear it in the next few years.

davilown

RelievedSheff wrote: »

I would move to the detached with a small mortgage.

We will never go back to having attached neighbours again. Once bitten twice shy and all that.

If your OH is not happy with your current home after two years he never will be.

Thanks, I think you’re totally correct!