I think this is also a lifestyle question. Are you happy with your current home, and will you need a bigger house shortly? If you get a bigger house, you'll eventually expand to fill it. That might not be a great thing if you are happy right now.
Ask HN: Small house vs. big house?
11–18 of 18 posts
Re: Ask HN: Small house vs. big house?
#12If you've got that kind of money, and you're after financial freedom and a house to live in, have you considered dumping it all into index funds and living off (rent+bills) the winnings?
Sure, there are no guarantees in life, but the same truism applies to a house. I don't know your circumstances, but it's not uncommon to need far less money in investments to cover the rent than the amount needed to buy outright.
Re: Ask HN: Small house vs. big house?
#13There's also c) Don't pay off mortgage on small house, rent it out instead (and hopefully have it cover its own mortgage and property tax), and then also get a new mortgage and buy a bigger house.
It's similar to (a), but makes more sense if you're in an area like SF bay area where you might take a bet on real estate to keep rising. London may be similar? Just another idea!
Re: Ask HN: Small house vs. big house?
#14Re: Ask HN: Small house vs. big house?
#15https://www.reddit.com/r/personalfinance/
While this whole post is off topic for this site, r/personalfinance has lost it ways in the past few years. everyone thinks their a stock market genius and no one is saving for the future because the market is full of gains. I'd really think carefully about any advice coming from there.
Re: Ask HN: Small house vs. big house?
#16https://www.reddit.com/r/personalfinance/
While this whole post is off topic for this site, r/personalfinance has lost it ways in the past few years. everyone thinks their a stock market genius and no one is saving for the future because the market is full of gains. I'd really think carefully about any advice coming from there.
I thought everyone was recommending index funds these days and holding them forever?
Re: Ask HN: Small house vs. big house?
#17Pay off the mortgage. The sense of freedom and security from no longer being on that particular 25 year debt treadmill is quite profound. Mortgage rates could return to 1980s 10%+ and you couldn't care less. Course if you're planning on 3 children and you currently have a two bed property I may change my answer.
I would agree and as you say we don't really have enough info here. If the OP is planning a family he needs a bigger house for sure!
Re: Ask HN: Small house vs. big house?
#18Earlier quoted context omitted.
While this whole post is off topic for this site, r/personalfinance has lost it ways in the past few years. everyone thinks their a stock market genius and no one is saving for the future because the market is full of gains. I'd really think carefully about any advice coming from there.
I thought everyone was recommending index funds these days and holding them forever?
That's not saving, because stock market goes up and down.