All the House I can afford?

[Deleted User]

What would you do?

Later this year I will be moving to a different area with the family. At first I had noticed that with a mortgage of say 150k we can afford very sizeable houses. This would leave us with around 3k to spare monthly after bills to invest.

However, should we go for a modest 4 bed but still nice enough, we would be mortgage free with 150k to invest from the outset and 4k to invest each month. It looks like with compounding this would be transformative with 5 years?

I can provide more information if necessary but which would you choose? Buy all the house you can afford, or something more modest with a view to having more capital to invest.

masonic

It depends largely on how much benefit you'd get from the extra space. If it wouldn't improve your lives at all, then hard to justify the extra expense.

Alistair31

Kinda hard to opine when you don’t say how many occupants there are?!

However…

More house = more bills + more cleaning

Albermarle

with 150k to invest from the outset and 4k to invest each month. It looks like with compounding this would be transformative with 5 years?

'Invest' is usually taken to mean investing in the financial markets, whereas compounding usually refers to interest from savings accounts. What are you thinking about?

Personally if I had a lack of savings/investments, and maybe an inadequate pension ( quite common), then I would be thinking about using the £4K a month to improve my financial situation.
If I already had plenty of spare cash and a good pension etc, then I would be thinking about the nicer house as an option ( or a nicer area ). 

VNX

[Deleted User] said:

What would you do?

Later this year I will be moving to a different area with the family. At first I had noticed that with a mortgage of say 150k we can afford very sizeable houses. This would leave us with around 3k to spare monthly after bills to invest.

However, should we go for a modest 4 bed but still nice enough, we would be mortgage free with 150k to invest from the outset and 4k to invest each month. It looks like with compounding this would be transformative with 5 years?

I can provide more information if necessary but which would you choose? Buy all the house you can afford, or something more modest with a view to having more capital to invest.

Hard to say as it’s very personal. Me personally based on the information abi e I’d take the modest four bed be mortgage free sleep well at night and have mi et to invest save and grow 

it’s not just about the physical house of course I’d want the modest house to be in a decent area 

[Deleted User]

VNX said:

[Deleted User] said:

What would you do?

Later this year I will be moving to a different area with the family. At first I had noticed that with a mortgage of say 150k we can afford very sizeable houses. This would leave us with around 3k to spare monthly after bills to invest.

However, should we go for a modest 4 bed but still nice enough, we would be mortgage free with 150k to invest from the outset and 4k to invest each month. It looks like with compounding this would be transformative with 5 years?

I can provide more information if necessary but which would you choose? Buy all the house you can afford, or something more modest with a view to having more capital to invest.

Hard to say as it’s very personal. Me personally based on the information abi e I’d take the modest four bed be mortgage free sleep well at night and have mi et to invest save and grow 

it’s not just about the physical house of course I’d want the modest house to be in a decent area 

That makes sense to me. As others have said I should have given more details. It will be a move closer to family from an urban to rural area. Crime won't be an issue but its true we need to think about schools. The "modest" 4 bed at 1500 to 2000 sq feet vs very large options 4000 sq feet +. The latter with more space for recreation at home such as gym. To be clear the modest option is mortgage free + 150k to invest + 4k/m. The larger options could be considered a forever home but higher bills and mortgage interest to pay, I am not sure how I will feel about that psychologically.

VNX

[Deleted User] said:

VNX said:

[Deleted User] said:

What would you do?

Later this year I will be moving to a different area with the family. At first I had noticed that with a mortgage of say 150k we can afford very sizeable houses. This would leave us with around 3k to spare monthly after bills to invest.

However, should we go for a modest 4 bed but still nice enough, we would be mortgage free with 150k to invest from the outset and 4k to invest each month. It looks like with compounding this would be transformative with 5 years?

I can provide more information if necessary but which would you choose? Buy all the house you can afford, or something more modest with a view to having more capital to invest.

Hard to say as it’s very personal. Me personally based on the information abi e I’d take the modest four bed be mortgage free sleep well at night and have mi et to invest save and grow 

it’s not just about the physical house of course I’d want the modest house to be in a decent area 

That makes sense to me. As others have said I should have given more details. It will be a move closer to family from an urban to rural area. Crime won't be an issue but its true we need to think about schools. The "modest" 4 bed at 1500 to 2000 sq feet vs very large options 4000 sq feet +. The latter with more space for recreation at home such as gym. To be clear the modest option is mortgage free + 150k to invest + 4k/m. The larger options could be considered a forever home but higher bills and mortgage interest to pay, I am not sure how I will feel about that psychologically.

Personally, no brainier to go for the “modest” four bed and have 150k to invest / save / enjoy life with