Looking for input on a (happy) dilemma. My husband and I (late thirties, no kids) were lucky enough to catch the real estate wave early and build a lot of equity in our flat. We've put it on the market and are trying to decide between getting a ground floor flat with a small yard at about the same mortgage as we have now (~25% of our net pay) or purchasing a smaller flat (3 bedroom versus our current four) with the cash equity of the sale.
We are financially "comfortable enough" with our current mortgage but would love to do more travel, more dinners out, more expensive hobbies etc. Having no mortgage would allow us to invest half the mortgage amount each month and upgrade our lifestyle with the other half.
No kids yet, hopefully will have in the future (but background of 5 years of infertility so there is a high probability it will remain just the two of us).
What would you do in our situation and has anyone downsized or paid off their mortgage early and regretted it? Or conversely consciously chosen to go for the better flat/house and been happy with their choice?