2nd step on the property ladder - when?
Discussion
Hey folks
Bit of a ramble this so hope you'll stay with me. Thinking out loud and driving myself nuts so would appreciate an outsiders perspective on the situation.
We bought our first house this time last year and in hindsight I kind of regret it. Not the house as such but down to location - overlooked badly and although the area we are in is nice it borders on a less pleasant area. Nothing major but just nagging away at me that with the benefit of hindsight I feel we rushed in a bit and our judgement was clouded.
So we are only 1 yr into a 35 year term - the long term plan was to start a family here (we both turned 30 this yr) in the next couple of years and then look to move to something bigger as and when we could afford to. The fact that we bought with a 5% deposit wasn't the brightest move either but hey ho.
Part of me is thinking that if we committed to a plan, we could put the baby making on hold and save hard for another three years and save c. £1k a month to be used in conjunction with any equity gain in our house over the 4 years and use that as the deposit on the 'forever home' before starting a family. Based on a couple of assumptions and a quick scout of mortgage deals we would pay roughly what we pay now on the mortgage.
Another part of me thinks we'd be better off accepting that we will be here for a while, pushing on with the family plans and then looking to move in say 10 years or if and when finances allow - bearing in mind we will lose a salary when we are avec infant so saving will go out the window (however this time next year we should be able to knock ~£300/m off our mortgage payment as we can hopefully switch from a 95% product to 90%
I'm also not so naive to think that starting a family is a doddle and is guaranteed to happen especially with us both being the wrong side of 30 now so it could be that we can continue to save for longer than we thought anyway.
I know it's hard to make decisions without full knowledge of the finances but just interested to hear some general thoughts.
Ta
Bit of a ramble this so hope you'll stay with me. Thinking out loud and driving myself nuts so would appreciate an outsiders perspective on the situation.
We bought our first house this time last year and in hindsight I kind of regret it. Not the house as such but down to location - overlooked badly and although the area we are in is nice it borders on a less pleasant area. Nothing major but just nagging away at me that with the benefit of hindsight I feel we rushed in a bit and our judgement was clouded.
So we are only 1 yr into a 35 year term - the long term plan was to start a family here (we both turned 30 this yr) in the next couple of years and then look to move to something bigger as and when we could afford to. The fact that we bought with a 5% deposit wasn't the brightest move either but hey ho.
Part of me is thinking that if we committed to a plan, we could put the baby making on hold and save hard for another three years and save c. £1k a month to be used in conjunction with any equity gain in our house over the 4 years and use that as the deposit on the 'forever home' before starting a family. Based on a couple of assumptions and a quick scout of mortgage deals we would pay roughly what we pay now on the mortgage.
Another part of me thinks we'd be better off accepting that we will be here for a while, pushing on with the family plans and then looking to move in say 10 years or if and when finances allow - bearing in mind we will lose a salary when we are avec infant so saving will go out the window (however this time next year we should be able to knock ~£300/m off our mortgage payment as we can hopefully switch from a 95% product to 90%
I'm also not so naive to think that starting a family is a doddle and is guaranteed to happen especially with us both being the wrong side of 30 now so it could be that we can continue to save for longer than we thought anyway.
I know it's hard to make decisions without full knowledge of the finances but just interested to hear some general thoughts.
Ta
Edited by BRISTOL86 on Monday 13th June 15:34
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