I don’t like HOAs and neighborhoods where everyone has a near identical house. Therefore, you’re going to get a broader range of house prices.
Assuming the houses aren’t all cookie cutter, you’ll have a range of sizes, prices, and possibly ages. Safest to keep your house between the 20th and 80th percentile. For me, I’d rather be closer to the 20th percentile in a nicer neighborhood with better schools and a shorter commute.
There’s some risk of peer pressure and desire to keep up with the Jones when most of your neighbors make more than doctor or attorney level income. That said, it’s useful for the kids to learn that you don’t need new German cars every year or two, designer jeans, and membership at more clubs than you actually attend.
On the other end of the spectrum, the nicest house in the ghetto is the one most likely to get robbed. There are valid reasons not to have a house at the 90th percentile or above in price. Selling in a timely manner for a fair price is tougher if your house is too far outside of the fat part of the Gaussian distribution. At least the 10th or 20th percentile house has appeal both as a starter home or as a possible flip or tear down.
Assuming the houses aren’t all cookie cutter, you’ll have a range of sizes, prices, and possibly ages. Safest to keep your house between the 20th and 80th percentile. For me, I’d rather be closer to the 20th percentile in a nicer neighborhood with better schools and a shorter commute.
There’s some risk of peer pressure and desire to keep up with the Jones when most of your neighbors make more than doctor or attorney level income. That said, it’s useful for the kids to learn that you don’t need new German cars every year or two, designer jeans, and membership at more clubs than you actually attend.
On the other end of the spectrum, the nicest house in the ghetto is the one most likely to get robbed. There are valid reasons not to have a house at the 90th percentile or above in price. Selling in a timely manner for a fair price is tougher if your house is too far outside of the fat part of the Gaussian distribution. At least the 10th or 20th percentile house has appeal both as a starter home or as a possible flip or tear down.
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