To move or not to move?

[ljshguighuf]

Hi all
I am new to the forum, but I’m not new to MMM as I’ve been following his ideas since 2016.

I’m a 35-year-old father of two young children, of which I have 50:50 shared care due to splitting with their mother a couple of years ago. I currently own my home outright (thanks MMM), and commute by car to work, which takes around 30-40 minutes each way. The children’s school is on the way to work.

On the whole I am happy with my current home, but I bought it during the pandemic when the property market was pretty stagnant and there wasn’t much to choose from. It’s a 1970s 3-bedroom end-of-terrace house which is functional but could do with modernisation throughout. The only thing it lacks which I’d really like is an attached garage and driveway.

Around 10 miles away there is a newbuild development selling 3-bedroom semi-detached homes with driveways and garages. I know the area well, love the houses, have lived in a newbuild before and the development is slightly closer to work so would reduce my commute by around 10 minutes. The drawback is, these houses are priced at £400k. My current home is worth about £330k.

The new house would require no modernisation (although I’m aware this is factored into the cost), and is slightly closer to the children’s school and my place of work. However, by the time stamp duty, moving and other costs are considered the actual extra cost will probably be nearer £85k, which seems a lot of money to pay for a slight increase in happiness. In terms of financing the endevour, I would probably take out a mortgage for the difference as I don’t have the cash, although realistically I could save it in 2 to 3 years. I understand that this all might be quite facepunchworthy, but what would you do in my situation?

[MarcherLady]

Hi there!

Personally I am not a fan of new-builds and they commonly don't hold their value as well as an older property.

So my first thought is: - what would be the cost to bring your existing house up to the same standard as the new-build? However, you mention wanting a garage, and being in an end-terrace, so I realise that might not actually be possible re the garage. So the next question is, can you determine what £ value the garage would give you? For example, if you could rent a garage for 10k pa would you do that? 15k?

What is the use-case for the garage? Parking your car? Carrying out a hobby? Storing your garden furniture in the winter? Are there other alternatives that would meet this without moving? Is there a maker-space available for hobby work for example? Or would a fancy garden shed meet the need?

In summary, I think you need to look at what other, cheaper options meet your needs, and decide if they would be better value for money than moving.

[SailingOnASmallSailboat]

Saving 25-33% of commute time would be worth a lot to me.

This doesn't sound like a reasonable trade though. If you'd like a garage and driveway, why not keep an eye out for such a property that's even closer to work/kids' school and is closer to what your house is worth? Do they exist?

[vand]

Considering you bought the current home "during the pandemic" then I'm guessing you've only been there for a year or so.. honestly, I would just stay put for the time being.  Buying a home works out better if you don't jump from place to place every few years.

It sounds to me that the benefits are marginal. Does having a driveway or garage really improve your life in any considerable way when you really think about it?

The frictional costs and hassle are huge when moving home which should imo make it a once a decade thing.. we also moved during the pandemic and have now been here just over a year.. we're not planning to move again for a long long time. Just my 2c.

[MisterA]

Personally I am not a fan of new-builds and they commonly don't hold their value as well as an older property.

+1. They are also generally smaller houses, on a smaller plot.

And as @vand says, you've only been there a very short time, so stay put.

When the time does come that you're ready to move, have a think about a slightly older house where you'll get more for your money.

[Manchester]

You're in a pretty nice position either way. 

I'd probably look for a similar house that isn't a new build that's even closer to your work, but if that's not available and you think it will make you happier, then go for it.  The best financial decision isn't always the best decision.  Having a £70k mortgage on a property worth £400k at 35 is still far better than pretty much everyone else at that age. 

[ljshguighuf]

Hi everyone,

Apologies for the shameful lack of reply.

After much further thought I have decided to stay put for now. With the economic uncertaintly we all face at the moment, along with the fact that I would have to pay a not-insignificant sum in stamp duty, it seems like a bad financial decision to move from a home that I am 90% happy with.

My plan going forwards is to keep stashing the cash as much as posible, allowing a small amount of frivolous spending to get it how I want it, and accepting that the grass isn't always greener. If I am still entertaining the idea of moving in 4 or 5 years and I am in a position that I have the extra cash then I will reconsider. My life now is drastically different to how it was 3 years ago, so my situation in 5 years' time is anybody's guess.

Thanks to everyone for their advice

And to answer the question: the garage and the driveway would be mainly to accommodate my unmustachian hobby of owning a teenage big-engined Mercedes and a motorbike.

[vand]

And to answer the question: the garage and the driveway would be mainly to accommodate my unmustachian hobby of owning a teenage big-engined Mercedes and a motorbike.

OK, but why do you need a garage for that? Plenty of people leave their cars and bikes parked curbside. Is it just for pose value?

[MarcherLady]

Hi, thanks for the update. I think your plan sounds like a good one. Sit back and enjoy not dealing with solicitors for the next few months :-).