Sticking in a modest house
Discussion
I’m currently living in a 2.5 bed semi. Mortgage is paid off and earning a good salary in my mid 30s.
As is the British way, I’m constantly on Rightmove thinking about trading up. However, after many hours of this I’m concluding that I just don’t see value in the U.K. housing market.
I could spend 3-4x what my house cost and gain a bedroom or two and live in a better postcode in a posh part of the Home Counties, but it’s a truly crazy sum to trade up for not a lot of benefit.
I’m thinking about sticking where I am, but it feels unambitious to step off the housing ladder in my 30s, and also a bit strange to stop lusting after houses after all this time.
I have a kid and don’t see another one coming along. Schools are also pretty good where we are so that also isn’t really a driver.
I think if I can square off that I won’t be buying a new house I would make some different decisions such as working a bit less and living a bit more for today. I would hate to do that though and then find myself mortgaging up again in ten years time.
Appreciate it’s a first world problem, but is anyone else in a similar situation of sticking it out in something relatively modest?
As is the British way, I’m constantly on Rightmove thinking about trading up. However, after many hours of this I’m concluding that I just don’t see value in the U.K. housing market.
I could spend 3-4x what my house cost and gain a bedroom or two and live in a better postcode in a posh part of the Home Counties, but it’s a truly crazy sum to trade up for not a lot of benefit.
I’m thinking about sticking where I am, but it feels unambitious to step off the housing ladder in my 30s, and also a bit strange to stop lusting after houses after all this time.
I have a kid and don’t see another one coming along. Schools are also pretty good where we are so that also isn’t really a driver.
I think if I can square off that I won’t be buying a new house I would make some different decisions such as working a bit less and living a bit more for today. I would hate to do that though and then find myself mortgaging up again in ten years time.
Appreciate it’s a first world problem, but is anyone else in a similar situation of sticking it out in something relatively modest?
How about continuing to work as you are for the time being and sticking the money into savings/investments. Should you then decide in 10 years time that you wish to trade up then you could without no, or much less, of a mortgage.
Also, we don't know what is around the corner. Although I wish you no bad luck/health etc in the future, having an amount in savings that you, or your family, could call on in the future may be a good idea?
The way I see it, you can then continue working whilst able to and you feel fit enough to. With an amount in the bank you could slow down as much as you wanted once you were getting a little more tired with the grind. Or, if you did decide that you wanted an upgrade in housing then you could.
Also, we don't know what is around the corner. Although I wish you no bad luck/health etc in the future, having an amount in savings that you, or your family, could call on in the future may be a good idea?
The way I see it, you can then continue working whilst able to and you feel fit enough to. With an amount in the bank you could slow down as much as you wanted once you were getting a little more tired with the grind. Or, if you did decide that you wanted an upgrade in housing then you could.
Congratulations on being mortgage free in your thirties. That’s fantastic!
In your position I’d be trying to balance living a comfortable (but not excessive) life now with putting away decent amounts of money for the future. That future could mean early retirement, or sending your kid to university, or all sorts of other objectives. I’d be paying enough into a company pension to ensure that I’m getting the maximum company contributions and reducing exposure to higher rate tax, then I’d be using as much of the ISA allowance as possible to invest in a global equity index tracker to give you long-term growth.
If you’re happy in your house, and it meets your needs, and you like the area, then why on earth would you consider moving?
You’re in a fantastic position - make hay while the sun is shining!
In your position I’d be trying to balance living a comfortable (but not excessive) life now with putting away decent amounts of money for the future. That future could mean early retirement, or sending your kid to university, or all sorts of other objectives. I’d be paying enough into a company pension to ensure that I’m getting the maximum company contributions and reducing exposure to higher rate tax, then I’d be using as much of the ISA allowance as possible to invest in a global equity index tracker to give you long-term growth.
If you’re happy in your house, and it meets your needs, and you like the area, then why on earth would you consider moving?
You’re in a fantastic position - make hay while the sun is shining!
There is an argument that a younger person like the OP should spend their money while they’re young and live life to the full, on the grounds that they might die young. Whilst that argument has some merit, I think it has two major flaws.
Firstly, whilst it’s true that you might die young, it is far more likely that you’ll live well into your seventies or eighties. To me it makes far more sense to plan your life for the most likely outcome.
Secondly, the argument that you should live life to the full now “while you still can” makes the erroneous assumption that life becomes severely limited in your later years and that you’ll find yourself looking back at missed opportunities. The fact is that quality of life for older people is getting better and better, and there’s a very good chance that you can still do virtually anything in your sixties and seventies that you could have done when younger. Skydiving, anyone? Yep - you can do that.
To my mind, the far greater tragedy is to be stuck working into your seventies, unable to kick back and enjoy a life of leisure because you pissed too much money up the wall when you were younger.
It is, of course, a balance between having a bit of fun now but still being able to enjoy your later years. The OP seems to be in a terrific position to have a piece of each cake, and eat both of them.
Firstly, whilst it’s true that you might die young, it is far more likely that you’ll live well into your seventies or eighties. To me it makes far more sense to plan your life for the most likely outcome.
Secondly, the argument that you should live life to the full now “while you still can” makes the erroneous assumption that life becomes severely limited in your later years and that you’ll find yourself looking back at missed opportunities. The fact is that quality of life for older people is getting better and better, and there’s a very good chance that you can still do virtually anything in your sixties and seventies that you could have done when younger. Skydiving, anyone? Yep - you can do that.
To my mind, the far greater tragedy is to be stuck working into your seventies, unable to kick back and enjoy a life of leisure because you pissed too much money up the wall when you were younger.
It is, of course, a balance between having a bit of fun now but still being able to enjoy your later years. The OP seems to be in a terrific position to have a piece of each cake, and eat both of them.
Nope, nothing wrong with that. Me and my partner are about to buy our first house, now we could buy a 4 bed detached with a garage, starching ourselves a little on the mortgage each month, but when we took a step back and thought about it, why do we need to pay a extra £60k to buy a house with much more room that we would ever need, a garage we wouldn’t use and all the higher bills that comes with it.
That’s why we are buying a lovely detached 3 bed, still big enough for 2 people and we are going to make it lovely inside. Plan is to stay, pay,off what will be a small mortgage then equity release.
Enjoy your life and money yourself instead of buying rooms you’ll never use.
That’s why we are buying a lovely detached 3 bed, still big enough for 2 people and we are going to make it lovely inside. Plan is to stay, pay,off what will be a small mortgage then equity release.
Enjoy your life and money yourself instead of buying rooms you’ll never use.
Nickbrapp said:
That’s why we are buying a lovely detached 3 bed, still big enough for 2 people and we are going to make it lovely inside. Plan is to stay, pay,off what will be a small mortgage then equity release.
Enjoy your life and money yourself instead of buying rooms you’ll never use.
Your plan is to borrow money at a very low rate, pay it off aggressively only to then borrow against the asset again?Enjoy your life and money yourself instead of buying rooms you’ll never use.
Why overpay debt that is below inflation with the idea to the take it out and spend it again later? Pay a normal amount on your mortgage and stick the balance in conservative investments (wrapped in an ISA or SIPP).
Unless im missing something, your plan makes no sense at all.
On the basis that the original poster last started a post about his health issues, and then boasted about his sex life i'd suggest that he is just attention seeking.
If he isn't and he genuinely has paid of his mortgage in his mid thirties, lives where he wants to live and has the ideal lifestyle maybe he should address his stress and health issues.
Work less, enjoy each day and take the kid out. Even if it just walking to school and not driving it will be great for both of you.
Prioritise life over work.
I'm not quite in the same position, but getting there. We're in a nice corner 3 bed house, with two kids and a dog, and a little less that 20% LTV left on the house.
In our late 30s, we're actually starting to think about where we want to live after the kids leave home, which realistically wouldn't be for at least another 15 years.
We could try to get somewhere bigger, but that would mean the missus going back to work full time, and for what? The odd time we need a spare bedroom doesn't make it worthwhile. It's cheaper to put guests up in a local B&B.
I think the term is FIRE - Financially independent, retire early.
We're a good way off it, but I get the mentality...
In our late 30s, we're actually starting to think about where we want to live after the kids leave home, which realistically wouldn't be for at least another 15 years.
We could try to get somewhere bigger, but that would mean the missus going back to work full time, and for what? The odd time we need a spare bedroom doesn't make it worthwhile. It's cheaper to put guests up in a local B&B.
I think the term is FIRE - Financially independent, retire early.
We're a good way off it, but I get the mentality...
I'm in a similar situation, live in a house worth about 140k which is end terrace, has a garden, double garage etc and is in a decent area, mortgage should be paid by the time i'm early 40's. Ideally I'd want detached with a reasonable amount of space between me and my neighbors, but this means spending around 350k which I could afford with current interest rates but it it would mean paying my mortgage into my 50's and adjusting my lifestyle so that i don't continually piss money up the wall as I do today. this doesn't really appeal too much being as i want to have retired by 55 and am really happy currently being able to do what I want, when I want so the very mediocre house stays for now.
I don't think there's a right or wrong answer to this, it all depends on your personal priorities in life
I don't think there's a right or wrong answer to this, it all depends on your personal priorities in life
louiebaby said:
I'm not quite in the same position, but getting there. We're in a nice corner 3 bed house, with two kids and a dog, and a little less that 20% LTV left on the house.
In our late 30s, we're actually starting to think about where we want to live after the kids leave home, which realistically wouldn't be for at least another 15 years.
We could try to get somewhere bigger, but that would mean the missus going back to work full time, and for what? The odd time we need a spare bedroom doesn't make it worthwhile. It's cheaper to put guests up in a local B&B.
I think the term is FIRE - Financially independent, retire early.
We're a good way off it, but I get the mentality...
When i joined this forum i was in a similar situation. I then upgraded everything in the same quarter that i lost my business. Roll on 15 years and I still have a mortgage, heading towards the big 50, and realistically wont clear it till im 60.In our late 30s, we're actually starting to think about where we want to live after the kids leave home, which realistically wouldn't be for at least another 15 years.
We could try to get somewhere bigger, but that would mean the missus going back to work full time, and for what? The odd time we need a spare bedroom doesn't make it worthwhile. It's cheaper to put guests up in a local B&B.
I think the term is FIRE - Financially independent, retire early.
We're a good way off it, but I get the mentality...
If i had stayed put in my sensible 3 bed i would be mortgage free, would have been able to deal with the business loss a lot easier and would have been enjoying a very comfortable lifestyle quite a few years ago.
I'm going to an opposing view to the majority of the posters here. About 12 years ago I looked at a really nice 4 bed in a desirable location, priced at £250k. I didn't go for it & stayed in my current house & it's turned out to be one of the biggest financial mistakes I have made. That house is now on the market for £755k & has sold. I'll never be able to afford a house like that again. While it's true my house has increased in value, I've missed out on a very substantial amount of money & 10 years of living in a better house. No-one knows how house prices will change, but it's a long time since they fell substantially & now could be a good time to be looking with prices softening & offers to be made.
These could be some of your best earning years: in 10 years time you could have paid off your mortage & be sitting in a substantial asset which you can chop in for cash to fund an early retirement. Being mortgage free at 30 is laudable but being mortgage free at 45 sitting in a big house is better.
These could be some of your best earning years: in 10 years time you could have paid off your mortage & be sitting in a substantial asset which you can chop in for cash to fund an early retirement. Being mortgage free at 30 is laudable but being mortgage free at 45 sitting in a big house is better.
Simond S said:
On the basis that the original poster last started a post about his health issues, and then boasted about his sex life i'd suggest that he is just attention seeking.
If he isn't and he genuinely has paid of his mortgage in his mid thirties, lives where he wants to live and has the ideal lifestyle maybe he should address his stress and health issues.
Work less, enjoy each day and take the kid out. Even if it just walking to school and not driving it will be great for both of you.
Prioritise life over work.
And buy a Ferrari If he isn't and he genuinely has paid of his mortgage in his mid thirties, lives where he wants to live and has the ideal lifestyle maybe he should address his stress and health issues.
Work less, enjoy each day and take the kid out. Even if it just walking to school and not driving it will be great for both of you.
Prioritise life over work.
https://www.pistonheads.com/gassing/topic.asp?h=0&...
I feel the same - I could put double the price of my house into something else, but that's a lot of cash, stress and hassle for an extra room or two to fill with clutter, and maybe a double garage. I've spent years getting mine how I want it, so I think I'm just going to make the most of it now.
We came to this conclusion when we fixed for another 5 years recently.
We're detached, but it's a 3-bed and it's a bungalow. Our youngest would like an 'upstairs house' - he's gutted when we point out our previous place was one! - and another bedroom wouldn't go amiss for the odd time people come to visit.
But then it occurs to us that we could probably get shot of this mortgage within the next 10 years or so and any worthwhile move would probably result in us having to double the mortgage we have and there'd be a Stamp Duty bill etc.
Plus at some point in the future - though, hopefully not for another few decades! - we'd probably want/need to move to a bungalow anyway.
We've decided it would be nice to have a holiday home somewhere like Mallorca eventually, so that's what we'll save up for instead. It doesn't stop Mrs PB constantly looking at Rightmove though!
We're detached, but it's a 3-bed and it's a bungalow. Our youngest would like an 'upstairs house' - he's gutted when we point out our previous place was one! - and another bedroom wouldn't go amiss for the odd time people come to visit.
But then it occurs to us that we could probably get shot of this mortgage within the next 10 years or so and any worthwhile move would probably result in us having to double the mortgage we have and there'd be a Stamp Duty bill etc.
Plus at some point in the future - though, hopefully not for another few decades! - we'd probably want/need to move to a bungalow anyway.
We've decided it would be nice to have a holiday home somewhere like Mallorca eventually, so that's what we'll save up for instead. It doesn't stop Mrs PB constantly looking at Rightmove though!
Brooking10 said:
Simond S said:
On the basis that the original poster last started a post about his health issues, and then boasted about his sex life i'd suggest that he is just attention seeking.
If he isn't and he genuinely has paid of his mortgage in his mid thirties, lives where he wants to live and has the ideal lifestyle maybe he should address his stress and health issues.
Work less, enjoy each day and take the kid out. Even if it just walking to school and not driving it will be great for both of you.
Prioritise life over work.
And buy a Ferrari If he isn't and he genuinely has paid of his mortgage in his mid thirties, lives where he wants to live and has the ideal lifestyle maybe he should address his stress and health issues.
Work less, enjoy each day and take the kid out. Even if it just walking to school and not driving it will be great for both of you.
Prioritise life over work.
https://www.pistonheads.com/gassing/topic.asp?h=0&...
It depends how rough the area is.
We got to a comfy stage in our mid 30s with a slightly smaller house. The benefits are significant (lower council/tax running costs as well as the mortgage difference), but we came to the conclusion she wanted one more move, and I was happy to go along with that.
The replacement house is much nicer (although I do think back to when I had plenty of money for the pub - and had options when it comes to work). To be fair, I think a Ferrari on the driveway of the old place might have stood out a bit too much too :-)
We got to a comfy stage in our mid 30s with a slightly smaller house. The benefits are significant (lower council/tax running costs as well as the mortgage difference), but we came to the conclusion she wanted one more move, and I was happy to go along with that.
The replacement house is much nicer (although I do think back to when I had plenty of money for the pub - and had options when it comes to work). To be fair, I think a Ferrari on the driveway of the old place might have stood out a bit too much too :-)
Ouch about digging up the old posts!
Health issues - bit of a fatty but not exactly gonna die! Have actually improved since that post
Ferrari - other side of the coin really. For years I have had big house and flash car as the goal, but now questioning whether it's what I really want to do or whether I can be happy with what I have.
I think this is why it's a big decision for me. I'm conciously stepping away from a lifetime of chasing money, houses and cars to rebalance towards health, family etc.
Thanks to the people with constructive responses and perspectives and it's good to see that some people have the same mindset.
Health issues - bit of a fatty but not exactly gonna die! Have actually improved since that post
Ferrari - other side of the coin really. For years I have had big house and flash car as the goal, but now questioning whether it's what I really want to do or whether I can be happy with what I have.
I think this is why it's a big decision for me. I'm conciously stepping away from a lifetime of chasing money, houses and cars to rebalance towards health, family etc.
Thanks to the people with constructive responses and perspectives and it's good to see that some people have the same mindset.
Edited by bw1981 on Monday 4th June 16:08
Edited by bw1981 on Monday 4th June 16:11
I wish I'd stayed in my last house, we had great neighbours, nice little 3 bed house within walking distance to town, end of a cul de sac so no commuters speeding past the house.
We upgraded to a bigger house.
But!!!!!!
Awful neighbours, commuters speeding past the house in rush hour.
And our area is a target for burglary as the houses are that little bit nicer, although think of fort knox and you'll get an idea what I've done.
So to the OP, weigh up what you have now, the next move just might not be the happiest one you're expecting.
We upgraded to a bigger house.
But!!!!!!
Awful neighbours, commuters speeding past the house in rush hour.
And our area is a target for burglary as the houses are that little bit nicer, although think of fort knox and you'll get an idea what I've done.
So to the OP, weigh up what you have now, the next move just might not be the happiest one you're expecting.
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