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WWYD - found two houses we like, but can't decide!
We've been looking for houses for a while now and yesterday we saw close to 10 (yeah, it was pretty insane!) We liked two of these houses. They are completely different from each other though.
One is small(ish) and cozy, way cheaper (around $200,000 actually). It's a 4 bedroom with I think 3 full baths, a smaller dining room and living room. It has a beautiful big backyard (they even have the swing set like we would like to get, since they have three kids). Lots of kids in the neighborhood (according to the lady who lives there), school a block away. DH is concerned that it is too small and we will "outgrow" it pretty quickly and then have to move in 7-10 years. It's also quite farther from the train station, so DH would probably have to drive, which means a second car. Oh, and it has much much lower taxes. It was built in the 1940's, but recently renovated, by the people who are selling it now.
The second house is really big, spacious. Lots of windows. The backyard is pretty big also. It's a newer house (5 or 6 years old) with 5 bedrooms and 3.5 baths. Oh, and a jacuzzi (I think this *might* be the selling point for DH, lol). About 10 minutes walking distance to the train. About the same to schools as well. But like I said, about $200,000 more and higher taxes.
We can technically afford the bigger house, and we won't "outgrow" it for a while, won't need a second car, but will probably need a cleaning lady (I can't even begin to imagine how I'd go about cleaning it myself!) So ladies, help me out here, which one would you pick? Much cheaper one with a beautiful finished backyard (but smaller?) or the more expensive more spacious one within walking distance to the train?
Re: WWYD - found two houses we like, but can't decide!
How exciting!!
I wouldn't even know what to do with a 5BR home, so I would probably lean toward the smaller place. Especially if there is outdoor space and a neighborhood. I am conservative, though, with these things and think that buying modest and upgrading later if needed is the way to go.
what about the neighborhood for the second house? is it as family friendly as the first?
As far as outgrowing the house, that's a big thing to take into consideration. DH and I went from a one br apt to a 3 br house with a finished basement and thought the house was HUGE and we'd never outgrow it.....4 years later we are busting at the seams and wish we could move, but it's just too soon to do that. So, I think if you are looking for your "forever" home, and you really think you'd outgrow the smaller house in a few years or so, then the bigger one is a better investment.
Where's a house for $200,000? If you get the smaller house, you'll have more disposible income. I like not being stressed about money, because we don't have family to help us if we get into any bad situations. Also, we have money to go traveling especially to visit our families, DH has a nicer car (a guy thing), DD can take lessons, ect.
If you get the bigger house that sounds great, than just think about that much more of your income will be tied up into a house payment and taxes, especially at first.
It's really about what your budget looks like and if you'll have enough left over if you buy the better house to still do what you want to do in your life.
I agree with a lot of this. You need to sit down and figure out the monthly expenses on both houses. Including all things, like taxes, maid, maintenance, extra car, fuel/heating/cooling costs (your broker should be able to get you a statement of expenses.) You will also need to consider the school districts. Is the school district the same? Which has a better district (for resale and value reasons?)
How old are the renovations on the older house? Maybe having a trusted home inspector go through both houses to make sure both are at equal levels. You don't want to be putting a new roof on or finding out about flooding or not up to code wires or something costly.
You guys do like to travel. You will need to consider that in your budgets.
The house that is 200k more, how is the value of the house compared to its value 5 years ago? Are you getting a bargain for buying in a crappy market? Will you make up your investment when the market rebounds? If the taxes go up, will you be able to afford them on such a big house?
If you really feel that you will outgrow the smaller house, you may want to go with the bigger one. But that may be a lot of extra expense to carry for the next 7-10 years just because you may outgrow a house. You can bank the money you are saving for those 7-10 years and be ready to buy something even better down the road.
Good luck, it isn't an easy decision.
All very good questions. And a lot of them too. Thanks, Pokey.
Apparently though, there's a third house which is not back on the table after potentially knocking off a pretty large chunk off the asking price, so that's our number 1 choice. And #2 is now officially the smaller house. There are annoying bits about it, and we'd probably have to move in 10-ish years, but we'd be able to move without stressing about selling our current condo, so that is a giant plus. And yeah, we'd have that much money left over for random things that come up. This is hard!!
Bubblegum Explosion
I've never bought anything, so no real advice... but personally I'd probably lean toward the smaller house. I like to live simply and not have too much stuff. a small space keeps me from accumulating a lot of stuff.
but OMG, I just saw your ticker! Congrats!!
Thanks, Tracy! And OMG, Beatrix is turning 2 is two days??? How did that happen??
Bubblegum Explosion