Got an Answer?
You answered you’re own question hun it will be your home not theirs and I would be reconsidering the “friends”
Cheaper one, pay it off sooner or renovate it, use the money you save on mortgage repayments to travel or put towards your next property. Home is what you make it!
Thanks for all thoughtful replies :-) We just put an offer in for the cheaper house! I am so very happy!!!!!
Cheaper - if it was only $20,000-$50,000 cheaper I would say get the more comfortable one but the difference is huge! Not worth the added financial stress
Cheaper. With the current housing prices it is a good idea to go cheaper, especially in places where there is a higher market for younger buyers and more turn over. The young buyers come in to buy cheap, do it up and have to move in. They push up prices in the area meaning you make more money.
Cheaper. Without a doubt! It’s yours, you can free up money for other things and repayments will be more doable and should anything happen, you’ll be thankful for. We have a modest home, husband and I are about 60k ahead of repayments and almost $100,000 in savings, holiday twice a year overseas and always away interstate or camping school holidays.
More expensive one. Where are you living anyway? A very ordinary house in an ordinary suburb costs $450k in Perth. $220k will get you a small flat that needs renovating in the Bronx or a block with a shack that needs demolishing.
I say shop around and find something inbetween the two houses you are currently looking at. Purchasing a house is stressful and a lot of consideration is required. Every day new listings are put up- hold off and you might find the perfect house tomorrow.
I have to say Im really suprised the bank will lend you that much with 1 income and 3 dependents, even on a high wage they usually dont! My friend was in exact same situation and they would only lend her 300.
Anyway, is there a 3rd option in the middle? Thats what I would do.
What are they like as investments? What happens if your husband job moves somewhere else, or he loses the job, which house can you sell easily.
So I would definitely go with the cheaper house if you like it and can live there and it ticks all the boxes! Good luck
If it's in a cheaper part of town that could mean it's not as solid an invested... or it could explode and make huge gain lol but it's a risk you take
Agree with all the above mentioned.