Should we buy?

[Charlie_D]

I posted the other day about this and basically now I would like your opinion. We currently have a 63000 mortgage on a house worth 110,000. We would like to increase the size of house and can afford an increase in mortgage of upto about 90,000 so can buy something worth about 140,000. Question is should we do it?! We dont necessarily need to move but I am wondering whether keep moving will help us get an increase in equity quicker. We have only had this house a year. I am also worried that if property prices fall we will end up stuck here. Is it better to buy the next one as soon as you can afford it? Sorry this is such a weird jumbled question, I just dont know what to do and would appreciate some pros and cons for moving up. Thanks.

[Hammer]

House prices are really irrelevant if you are only talking about owning one house in which you will live.

 

OK, on paper you have made �50k 'profit' but this will be wiped out on the increased price of the house you buy.

 

Actually if you want to upgrade, you are better off when prices fall. I know this is hard to get your head around, but look at the extreme. If yur house fell to �1, you would be able to buy a 15 bed mansion for around �100!

 

If you want to move, then move, but don't think of it as making or losing money. It is only paper money and you will never actually see any of it unless you sell up and live in a cardboard box!

 

 

[Jamie Lewis]

Cheaper to extend rather than buy bigger.

[Oneeyedvic]

Charlie - decide what you want - ie do you want to live in a nice house ofr 5 years, do you want to live in a smaller house and buy another, do you want to live in a smaller house and pay less on your mortgage etc etc.

 

Once you have decided what is your ideal - come back and advice will be given

 

 

[WoWo]

You can always do what I have done. Sell your house, stick the equity in the bank, rent for 3 years (at a cheaper rate than your mortgage) or so then buy a house at 30% less than today's prices. Pro's of moving up bigger house, cons bigger mortgage chance that price falls will erode all of your equity (you will have 0 to start with). Hopuse prices are falling as we speak how far they will go is anybody's guess. Mines 30%, I've even bet my house on it.