Stick or Twist - Looking for some advice on whether to move now or wait

sammo456

Hi,

We’re currently 3.5 years into our first home – a 2-bed extended semi in a nice part of Greater Manchester.

• Bought for £290,000 on 5% deposit in 2022.

• Spent around £15,000 on improvements (boiler replacement, full main roof replacement, garden renovation, replacement flooring, under-stairs storage fitted)

• Current value: approx. £310,000–£320,000

• £267,000 left of mortgage

My partner is 35 weeks pregnant with our first child, and we feel we’ll need a 3-bed property sooner rather than later with the incoming daughter. I’m unsure about fixing again in 6 months for another 2 years - I just don't think the house will be sufficient for that duration of time.

Situation:

• Bought originally with 5% deposit

• To get the space we want in the same or similar area, we’d likely need to buy in the £360,000–£375,000 range

• Likely that we'd be able to get to 10% deposit with equity from house sale

• Have around £11k in savings to cover stamp duty and moving costs.

• Current mortgage payments; £1,300/month

• Could stretch to: £1,700/month max whilst on reduced income

• Joint income (before maternity leave): £63k + £37k

• Take-home: £5,700–£5,900 on bonus months

Our dilemma:

1. Do we list the house now and look to move next year, even while on maternity leave (but before childcare costs kick in)?

2. Or is it wiser to stay put for another couple of years, build up more equity, and then look to move?

3. Do the figures above look affordable? Moving would likely wipe out our savings, but we'd have built a 10% deposit to take with us to the next house with hopefully some change in the equity for some manageable updates.

Any thoughts or experiences would be really appreciated! I'm personally struggling to find the rationale to invest even further in our current home, which has a ceiling value as a 2 bed and where we know we need to move.

Albermarle

Two bedrooms are sufficient for a couple with a small child.

I'm personally struggling to find the rationale to invest even further in our current home, which has a ceiling value as a 2 bed

Well do not invest anymore in it, just live in it as it is and then think about moving if you plan another child.

Moving would likely wipe out our savings

It  is not wise to have no savings/emergency fund.

ReadySteadyPop

Albermarle said:

Two bedrooms are sufficient for a couple with a small child.

I'm personally struggling to find the rationale to invest even further in our current home, which has a ceiling value as a 2 bed

Well do not invest anymore in it, just live in it as it is and then think about moving if you plan another child.

Moving would likely wipe out our savings

It  is not wise to have no savings/emergency fund.

Good advice.

Uriziel

I agree with the other poster. Your post makes no sense at all. You keep speaking about it not being sufficient but provide absolutely zero reasoning. That's because you have no reasoning. It clearly has nothing to do with the baby but actually your own preference of wanting a bigger home. The baby will not take up any space. I assume you want a bigger home so you do not need to be in the same area as the baby.
Did your income increase? Can you borrow more now than you did before? It really is up to you whether you are able to get something more expensive and whether you'll be able to sell your house for any profit at all especially as you have spent money on it. Where is that expected value coming from? Wishful thinking? Is this what you paid plus what you spent on it so you figure that must be the "value"? The value is whatever the market decides and not how much you would like. You should try to get an evaluation from an agency and see if they think you can get the money you need. Otherwise wait another year and then consider your options again. Continue saving until then.

ReadySteadyPop

"The value is whatever the market decides and not how much you would like. "

This is the main point to be aware of, don`t get psychologically invested in "making" a certain amount of profit from a house, it invariably leads to disappointment nowadays.

Herzlos

It's worth noting that most kids sleep in your room for the first 9-12 months anyway, so you're still going to have an office / spare room.

I'd hold off for a while unless you see something you really love to move up to. 

Bigphil1474

You've got years before you 'need' more space, unless your kid is gonna need 2 bedrooms? Personally , with your level of income why not focus on getting your mortgage cleared asap, save a fortune in interest, and have a healthier deposit when you need to move. You wouldn't be gaining much by moving up in the short term. Would your wife want to move while she's got a baby to look after?

ReadySteadyPop

Bigphil1474 said:

You've got years before you 'need' more space, unless your kid is gonna need 2 bedrooms? Personally , with your level of income why not focus on getting your mortgage cleared asap, save a fortune in interest, and have a healthier deposit when you need to move. You wouldn't be gaining much by moving up in the short term. Would your wife want to move while she's got a baby to look after?

Good advice, clear the mortgage debt first.