Should you buy the best house you can afford?

okigen

Seriously depends on your preference. I received wildly different advice about this, ranging from buying the most expensive one you can afford to buying a cheap fixer upper where you can spend future years increasing it value. I ended up writing down a list of alternative investments for which I can use the extra cash, and list of potential "escape routes" in case I have financial troubles. On that basis I settled down for 80% of original budget. Mind you, this approach suits me well because I often see more problems than opportunities (I work in risk management!). But many people would disagree

davilown

We had a budget of up to £650k and viewed every house between £450-£650 and didn’t like anything so we looked at semi’s.

Viewed a couple and now we’re doing just that - downsizing at 40 for a property half the price. Yes it’s now a semi but no mortgage and cash in the bank, still a lovely location, and only ‘have’ to work 3 days a week with (hopefully soon!) 2 or 3 holidays a year. 

Not worrying about where we have to live for the rest of our lives is a great feeling!

lookstraightahead

You really need to allow for flexibility of what life throws at you. Redundancy, marriage, divorce, kids (or not or having to pay for IVF) relocation, hardship, illness etc.

Simplistic  decisions bite you on the bum, more often than not.

some get 'lucky' and life is a merry go round that goes round and round. Others experience life in an up and down momentum.

Persian_DG

arrows123 said:

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. 

No scope for a good negotiation? To reduce the price of the properties at the top of your budget?

arrows123

Persian_DG said:

arrows123 said:

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. 

No scope for a good negotiation? To reduce the price of the properties at the top of your budget?

I’ve offered on three properties that were approx £50k below my (current) budget, all three went for approx £25k over the asking price within 24hrs at best and final, which I lost out on.

One came on the market a week ago at my top end for £10K more than for exact same house two doors down which went on a month ago and went sstc in two weeks (back when that was advertised my budget was £20k less so it wasn’t an option) currently using that as leverage to offer less than asking as well as my position. Had some good discussions with the agent, house has had 6 viewings no offers with one more viewing booked however it’s only been on the market for a week. Waiting to hear on an offer I’ve put in but tbh at this point I’m just so relieved it’s still available after a week and 6 viewings no offers! 🤞 

Davesnave

lookstraightahead said:

You really need to allow for flexibility of what life throws at you. Redundancy, marriage, divorce, kids (or not or having to pay for IVF) relocation, hardship, illness etc.

Simplistic  decisions bite you on the bum, more often than not.

Western economies haven't been in such a parlous state economically since I don't know when. Anyone with a few grains of knowledge in this area would see the PM's recent speech about science pulling us through and solving our problems for the puffed-up rhetoric and nonsense it was. I nearly fell off my chair laughing

However,  the underlying message of a very different agenda in future was in there, which will suit some people with the right aptitudes and/or training. Others will probably be left wondering what hit them and how everything changed so fast.