Move or improve?

mellowsun

Been going backwards and forward on this for a while now. 

Some reasons for staying put:

Like the area, its quiet, friendly, we know people here and are involved in local community
House can be extended (loft conversion and/or side return extension) and would be cheaper than moving

Some reasons for moving:

New job soon means longer commute
Disruption caused by building works, feels like it would be easier to move into a bigger place than extend current place

Sporky

Moving house and changing job at the same time sounds like an excellent recipe for misery.

mellowsun

Sporky said:

Moving house and changing job at the same time sounds like an excellent recipe for misery.

Good point, although the move wouldn't happen straight away, more likely at least 6 months away.

octatonic

I'd do whatever made the most long-term financial sense, unless you are at a point where you will have no financial worries later in life, in which case I'd whatever gave me the easiest life.

mellowsun

octatonic said:

I'd do whatever made the most long-term financial sense, unless you are at a point where you will have no financial worries later in life, in which case I'd whatever gave me the easiest life.

Currently mortgage free and own outright. Moving would likely involve another mortgage, which is fine, although enjoying being debt free.  Easiest life would be staying put, that's for sure!

stickyfiddle

If your current house is below the average value for the area, improve. If not, I'd be more in favour of moving. 

I'd certainly settle in the new job and commute for a few months before thinking about either though. 

octatonic

mellowsun said:

octatonic said:

I'd do whatever made the most long-term financial sense, unless you are at a point where you will have no financial worries later in life, in which case I'd whatever gave me the easiest life.

Currently mortgage free and own outright. Moving would likely involve another mortgage, which is fine, although enjoying being debt free.  Easiest life would be staying put, that's for sure!

I meant longterm.
Interest rates are cheap and only going to get cheaper.
You could argue that, taking on another, say, 200k mortgage now would be financially advantageous in the long term.
You have a more valuable house all paid off in 10 years and in 25 years it will be worth a lot more than now and you have more value you can take out further down the line.

boogieman

We went through this a couple of years back. We were thinking of downsizing and freeing up some cash, but by the time we'd factored in stamp duty, legal fees, agent's fees, removal costs etc we'd have ended up with a smaller house (which we'd still want to decorate and improve to our taste) and a couple of thou in the bank. Then we realised we'd also lose regular contact with friends and family,  a handy railway station round the corner, decent local shops, three places within easy reach to walk the dog and all the local stuff we're involved in like art clubs etc.

In the end it didn't make sense for us and we spent money on making the place we'd already got work better for us by extending and improving it. It's added some value to the place and it'll make it easier to sell in the future. 

Axe_meister

If you can move to a cheaper area you might be able to get a bigger house for the same money. This is what be are doing next year moving out of London, up size the house downsize the montage 

mellowsun

Axe_meister said:

If you can move to a cheaper area you might be able to get a bigger house for the same money. This is what be are doing next year moving out of London, up size the house downsize the montage 

We're thinking of moving out of London in the long term. But our current house is pretty small, so it's unlikely we'd be able to upsize the house without upsizing the mortgage also, at least in the areas we are considering.

richardhomer

mellowsun said:We're thinking of moving out of London in the long term. But our current house is pretty small, so it's unlikely we'd be able to upsize the house without upsizing the mortgage also, at least in the areas we are considering.

I would do everything you can to increase the value of your house if it's in London.

Once you are able to move out, you'll be able do so with the most equity behind you.

TTony

mellowsun said:

Like the area, its quiet, friendly, we know people here and are involved in local community

That has a value which is impossible to quantify and easy to overlook.  Until you've moved and then realise how valuable it was to you.

mellowsun said:

House can be extended (loft conversion and/or side return extension) and would be cheaper than moving

We're in the process of moving atm.  It's going to cost the best part of £50k just to move.  Stamp duty, estate agents, solicitors, removals - etc - and that's before considering the cost of getting a new place to the same level of comfort as our current place.  

So, if you can avoid moving by extending/converting your current place, the first £50k (or whatever your equivalent number is) of that cost is effectively "free".

mellowsun said:

New job soon means longer commute

Long ago I decided that home is far more permanent than job.  

If you move for your job, what happens when a better job comes along that requires another move, or you lose the current job that you just moved for?  My "commute" either involved hotels during the week (18mths was the longest stretch) or 2hr (each way) journeys.  But it was the right option.  For me.  YMMV of course.

But I'd advise caution in moving for work ...

spark240

octatonic said:

mellowsun said:

octatonic said:

I'd do whatever made the most long-term financial sense, unless you are at a point where you will have no financial worries later in life, in which case I'd whatever gave me the easiest life.

Currently mortgage free and own outright. Moving would likely involve another mortgage, which is fine, although enjoying being debt free.  Easiest life would be staying put, that's for sure!

I meant longterm.
Interest rates are cheap and only going to get cheaper.
You could argue that, taking on another, say, 200k mortgage now would be financially advantageous in the long term.
You have a more valuable house all paid off in 10 years and in 25 years it will be worth a lot more than now and you have more value you can take out further down the line.

Dude. I would question that.....rates look like they will come down, to 0.25 or maybe even zero, but ultimately they will go up, I certainly wouldn't base future borrowing on low rates for the long term.

ToneControl

depends how long you have left to work

also consider moving locally instead of extending
are your friends on your street or in your town, etc

thomasross20

Sporky said:

Moving house and changing job at the same time sounds like an excellent recipe for misery.

Crikey, that's also what I'm thinking!!

I'm currently 40+ mins to work in the car. Train station can get me to centre of town in 30 mins if I get a new job in town. If we stay here and get a new house we can be mortgage free, almost. They're a lot cheaper. 

Or can move closer to town where there's another rail line. If I stick to old job it'd be a 10 min drive. The train to centre of town would be 18 mins. Mortgage would be more, maybe about £75-80k tops. 

Job is another issue. Basically would be looking at a 15-20% rise but nobody really to learn from other than possibly frequent trips to the States to learn off the CalTECH guys. I left my current job once and returned - I can't do that a second time. Friend of mine thinks I'm insane - 60k+ and trips to California, he thinks I should go for it... but I've moved for the money before...

boogieman

thomasross20 said:

Sporky said:

Moving house and changing job at the same time sounds like an excellent recipe for misery.

Crikey, that's also what I'm thinking!!

I'm currently 40+ mins to work in the car. Train station can get me to centre of town in 30 mins if I get a new job in town. If we stay here and get a new house we can be mortgage free, almost. They're a lot cheaper. 

Or can move closer to town where there's another rail line. If I stick to old job it'd be a 10 min drive. The train to centre of town would be 18 mins. Mortgage would be more, maybe about £75-80k tops. 

Job is another issue. Basically would be looking at a 15-20% rise but nobody really to learn from other than possibly frequent trips to the States to learn off the CalTECH guys. I left my current job once and returned - I can't do that a second time. Friend of mine thinks I'm insane - 60k+ and trips to California, he thinks I should go for it... but I've moved for the money before...

Frequent trips to California are great, but presumably your g/f wouldn't be going with you? And most of it will be living in a hotel I'd guess? Plus jet lag on top of all that. Not sure I'd do it. 

Jalapeno

@mellowsun ;How long would the new commute be ? Quality of life equation .....

thomasross20

@boogieman.... something to think on for sure.
Having never done the California thing before, it sounds attractive... but those are good points.
The financial aspects are amazing though - on top of base salary I'm looking at benefits to take me up to 70-75k a year which is a lot more than I'm on now. No one overall option that's standing out. Thanks for your input, though.
EDIT - Cali trips are largely optional. Maybe one time she could come along and we could have an extended vacation but largely it'd be just me on work.

boogieman

thomasross20 said:

@boogieman.... something to think on for sure.
Having never done the California thing before, it sounds attractive... but those are good points.
The financial aspects are amazing though - on top of base salary I'm looking at benefits to take me up to 70-75k a year which is a lot more than I'm on now. No one overall option that's standing out. Thanks for your input, though.
EDIT - Cali trips are largely optional. Maybe one time she could come along and we could have an extended vacation but largely it'd be just me on work.

My niece by marriage is in a similar situation, so I know it's not always as glamorous as it sounds. She lives in NY but has to travel to Los Angeles a lot for work. She hates the fact she's cooped up in hotels a lot, doesn't know anyone when she's there (so no social life) and is away from her b/f for most of the week.

The money is a good incentive I'd agree, although don't forget you'll be paying 40% tax on the extra income once you earn above a certain amount. 

Jalapeno

Where in California ? Cupertino/San Jose are pretty much all industrial estates (albeit pretty ones), might as well go to Warrington or Milton Keynes

Teetonetal

thomasross20 said:

@boogieman.... something to think on for sure.
Having never done the California thing before, it sounds attractive... but those are good points.
The financial aspects are amazing though - on top of base salary I'm looking at benefits to take me up to 70-75k a year which is a lot more than I'm on now. No one overall option that's standing out. Thanks for your input, though.
EDIT - Cali trips are largely optional. Maybe one time she could come along and we could have an extended vacation but largely it'd be just me on work.

in the money vs quality of life debate, quality of life always wins for me.

My job is quite dull, pays well enough, I'm good at it, but it's big perk is that it's very flexible in regards to working from home, doing shorter and longer days, plus I get some travel which is nice. Communte is 40 mins and just about bike-able, oh and it's completely stress free and doesn't come home with me...

I could go and do  the same job elsewhere and get 25% more, but those jobs are far more fixed.

So I earn enough to be comfortable, and the perks of the job outweigh the extra money I could make elsewhere.

the moving thing is much harder though, even if you like your community, other people come and go. Life can be very different in 1 year time. For me I need the following boxes ticked, good transport links, nice area with good schools, things to do, good amenities and a house/flat with enough space.. If I have all that, then I'd be moving very reluctantly until the status quo changes..