Upsize or stay put

lika_86

silvercar said:

lika_86 said:

I'm confused as to why upsizing allows you to build equity to downsize. With a smaller mortgage then presumably you could pay it off sooner and then the money you have builds a nest egg for retirement and you don't have to downsize. 

If you want more space though, upsize.

Future house price inflation. If your property is worth £200k and HPI will give you a 20% growth between now and when you sell, you gain £40k. If you upsize to a property worth £400k, the same HPI will double your gain to £80k.

Depends where you live and future HPI. Near London and my property earns more than I do in some years. 

That makes sense if it weren't also for the for the fact that your mortgage increases as do bills if upsizing, so you can't look at price inflation in isolation. Upsizing and downsizing again also come with costs that staying put doesn't, all of which would erode price inflation.

EssexHebridean

We’ve just done the upsizing thing, although we went from a flat (no garden) to a house, so our drivers were different to just “more space”. We’ve definitely got more space though - in fact we’ve doubled it, albeit that wasn’t the specific intention, it was just that the house we fell in love with was rather bigger than we originally intended going for! Zero regrets here (other than the amount of time cleaning it takes!) and we are now on a mission to get the mortgage paid off ASAP so we can then start fully working on retirement savings.