Should you buy the best house you can afford?

paulj2021

Hi, this is a bit of an academic question with prices as high as they are, but if you were buying, should you always get a property at the very top end of what you can afford, or get a slightly cheaper property and leave yourself with some money in the bank (or with a smaller mortgage)? In my search there are big properties available at my full budget as well as nice but slightly smaller or slightly less convenient location properties (but still suitable for my purposes) for a chunk less money, I’m debating which might be the better option, what would you go for? 

hippocrates1

Depends on your future is you pad going to rise or do you see yourself going part time with kids etc. Do the coats fit into your budget but just the banks 

staffie1

hippocrates1 said:

Depends on your future is you pad going to rise or do you see yourself going part time with kids etc. Do the coats fit into your budget but just the banks 

You’re not making any sense.

Octothorpe

I think it depends how much disposable income you'd have left each month and how many years you see yourself in said house. Will you be having kids? How old are you?

Example, If it's 2 beds vs 3 beds then I'd go for the 3 bed as if kids come along house is practical for longer.

If the bigger house meant no free money to save or do anything fun, then it could begin to grate quickly!

In an ideal world I'd say buy the bigger place, but you have to consider all other factors too.

AdrianC

paulj2021 said:

Hi, this is a bit of an academic question with prices as high as they are, but if you were buying, should you always get a property at the very top end of what you can afford, or get a slightly cheaper property and leave yourself with some money in the bank (or with a smaller mortgage)? In my search there are big properties available at my full budget as well as nice but slightly smaller or slightly less convenient location properties (but still suitable for my purposes) for a chunk less money, I’m debating which might be the better option, what would you go for? 

So long as you aren't stretching yourself too hard, it's simple... Get the one you prefer, and which fits your needs.

MobileSaver

paulj2021 said:

I’m debating which might be the better option, what would you go for? 

Everyone is different, only you can decide what is best for you.

Personally I went for the biggest, best house I could afford on the basis that my home is where I will spend the vast majority of my time on this earth and it makes me smile and be thankful literally every single day I wake up.

There was another thread on here where the OP made the deliberate decision to live in an unsuitable house because she was not prepared to give up nice holidays every year. To me it's madness to spend 50 weeks of the year being troubled so you can spend 2 weeks of the year on a fancy holiday but each to their own...

UnderOffer

We looked at 2 properties both same number of beds but one was £50k more due to slightly bigger space mainly bedrooms and double garage. They were on same new build estate. As we had 3 young children under 5 and I was only part time we went for the cheaper property, it just felt right and was a great home for 12 years. 

Then the property we considered came on market, we viewed, loved it and paid £50k more than ours, albeit 12 years later 😀. Extra costs of course were the additional solicitors and stamp duty costs which we could have saved if we’d purchased this house in the first place! Do I regret that first move? Absolutely not, it was right at the time and for our growing family, we loved it there and have great memories, holidays etc. This new home suits us now as the bigger bedrooms help as kids pretty much live upstairs so all have double/king beds, desks etc., the extra garage and drive is useful as kids now driving.
So go for what feels comfortable now, as long as you think this will be a fairly long term ie 5-7 years plus home, then you can stretch yourself and move again at a later date. 

Davesnave

It all depends on the property and your own aptitudes and attitudes. Improving large, somewhat run-down properties usually looks easy on that notorious TV programme! The reality is different for the less patient and practical.

If our house had been at the top of our budget, we'd have been heavily constrained regarding the timescale of improvements. That would have led to other difficulties I'm sure. As it is, we have work outstanding after 12 years, although it's non-essential.

Some people are content to go on for years improving a 'stretch' property, while others are perhaps better to buy well within their means and move up the proverbial ladder a few rungs at a time. I passed a 'stretch' house last weekend which had been worked-on for about 8-10 years. One end had been developed to a high standard, while the other was still basically an outbuilding. The one next door was similar, but looked like it had been a work in progress for a long time! Both properties were in a very hard to repeat, idyllic location and the owners probably felt comfortable with their choices. However, I've seen many half-finished projects for sale where the money's run out and one partner's run away!

btcp

 It all depends on a definition you have for an affordability. Is it living from a pay check to a pay check or be able to save money and spend it on other things. That’s was my way of thinking. 

MovingForwards

I borrowed about ²/3 of what I could have as there wasn't anything better than a flat I really liked and it met my wants and needs, including a private garden and end building.

If I went to the maximum amount I could have got a terrace house, but no views, not close to public transport and shops and would have been on an estate. The only positive being it was a house.

I moved in with under £1k in the bank and a few tubs of trade paint. I'm slowly turning it into a gorgeous home, working with what's in the flat.

To pass the time when I can't sleep I have a look to see what's for sale within the budget I paid and maximum I could have borrowed, nothing compares to what I have and I've been here 13 months.

arrows123

Great post Paul. I’m in this exact quandary at the moment and trying to decide whether to go to the top of my budget for a house that’s great space wise and in the exact location I want but I’d like to do a few bits to it, no major works so hopefully wouldn’t cost too much vs renting and waiting and hoping something a little cheaper comes up in the next year.