When would be the best time to move?

IamWood

redundantmortgage said:

Are we saying that in theory if a house costing twice as much as my flat goes up by £80k then my flat goes up by £40k which leads to a £40k loss?

Thinking about it between the prices did go up almost £40k between 2013 and 2014 so that can't be ruled out again and I won't be able to save more than £40k a year even without a mortgage to pay.

Maybe I just need to take the plunge. I've done nothing but worry about being able to get to the end of my mortgage for the last 10 years (yes even before I got a mortgage) it's probably not possible to worry any more than I do now.

You can't really calculate the gain or loss for a property as a home. If investment is your primary goal, why not invest your money in the stock market or even in bitcoin?

When I move house, the location and the house itself are my main concerns. I don't even think of the future gain at all TBH. However, I have to confess that the property I have owned has since doubled in price purely is in the prime location of the town.

You have to change your mindset, I'm afraid.

propertyhunter

You are a worrier - like me! Just buy the house as long as you can afford it according to your broker's assessment of your circumstances at this moment in time. Over time, there are factors that play in your favour - for example, your debt amount (the price you paid) is fixed and inflation tends to erode your debt when wage inflation keeps up with price inflation (i.e. your salary increases over time), which is what usually happens (but I should mention this hasn't happened recently). 

Also, you have options if you have a change in circumstances that reduces your income, for example, not spending money on non-essentials, taking in a lodger, renting it out and moving in with family/friends (latter will need lender approval and likely increase to your interest rate) - but you don't need to lose your home if that's concerning you. 

The new year is the perfect time to take the plunge with the new listings that come onto the market. Good luck! 

redundantmortgage

I don't know what I'm saying that implies I'm looking at property as an investment. I just want to reach the point where I no longer have a mortgage to pay so that if I lose my job at least I have a roof over my head. 

Snookie12cat

redundantmortgage said:

I don't know what I'm saying that implies I'm looking at property as an investment. I just want to reach the point where I no longer have a mortgage to pay so that if I lose my job at least I have a roof over my head. 

Everything you have said about how much it might go up etc, how much you might lose implies you are thinking about it as an investment.
If all houses in your area go up by 5% it goes without saying that the house worth double your flat will increase much more in value, thus pricing you out. 

Living mortgage free is overrated. I have lived this way for 6 years and what I have is a house that is too small for us now and could live in but have had one foot out the door of for years. We are moving in the new year to a house much larger and it will saddle us with debt but I can afford it and we don't plan to retire in our 30s so it doesn't matter really. You only live once. You need to think why you want to move and then focus on that. 
If the worse happens you can plan for that then, but you seem to be thinking worst case when the likelihood of it happening is very low.

oz0707

Exactly my situation snookie. With interest rates on the floor and hpi running high it's been the biggest mistake I've made. Everyone I know who has over extended themselves has done well if only by timing, fair play. 

Snookie12cat

oz0707 said:

Exactly my situation snookie. With interest rates on the floor and hpi running high it's been the biggest mistake I've made. Everyone I know who has over extended themselves has done well if only by timing, fair play. 

If I had known then what I know now I would never have sunk all my money into my house. Rates are so insanely low its actually in your interest to not pay it off at this time and invest it somewhere else. I have always timed the interest rates wrong though lol, fixing when they were higher and then paying over the odds all my home ownership life! I might have timed it right this time (ha ha). 

That's one of the reasons we have decided to move now, as I see it as an investment that should pay off, but also a much nicer quality of life. The new house will enable family to visit for prolonged periods which is important to us, which a 2 bed just doesn't currently allow. I see the mortgage cost as a small price to pay for facilitating the things I want from my life. 

Ramouth

We were mortgage free for a few years in our last house.  I was slightly reluctant to take in another mortgage as I liked the security of having a home whatever happened.  The realisation came to us that we could always sell and use the equity to move back to a cheaper area if we needed to.  We have now moved to our preferred location and are enjoying it very much.  With a five year fix we do not have to worry much about rate rises.  I think if we had tried to save up enough to bridge the gap between areas we would never had managed it as rising prices stretch the gap faster than we can save.

redundantmortgage

The reason I'm thinking about increases/decreases is because I paid the price previously for not thinking about that. My reason for buying a property though is so I can reach a point in my life where I no longer need to pay a big chunk of money every month to keep a roof over my head particularly with the lack of job security.

It's true that I do take a pessimistic view of things but generally speaking the things I fear are going to happen end up happening.

I have to say I did think I'd start to relax a little once my bank balance exceeded what I owe on the mortgage but I've got more worried if anything because of this next move.

MysteryMe

You can make things as complicated as you like but the bottom line is if you want to move and can afford to move, just move. 

Snookie12cat

redundantmortgage said:

The reason I'm thinking about increases/decreases is because I paid the price previously for not thinking about that. My reason for buying a property though is so I can reach a point in my life where I no longer need to pay a big chunk of money every month to keep a roof over my head particularly with the lack of job security.

It's true that I do take a pessimistic view of things but generally speaking the things I fear are going to happen end up happening.

I have to say I did think I'd start to relax a little once my bank balance exceeded what I owe on the mortgage but I've got more worried if anything because of this next move.

I am a massive over thinker and can talk myself out of anything. I therefore tend to give it a small amount of thought, make sure it all looks good on paper and then jump in 🤣 I am in no way reckless but I have found stopping myself overthinking things has helped me move forward in life. 

I did have a few what the hell have I done moments though with the houses I did buy and the baby I had 😆 but it's all worked out fine. Worse case isn't the likely outcome in most these situations.