Looking for First Home

[I Find This Humerus]

I am now in the market shopping for my first home for just myself and my wife. No plans of having kids. We don't need much space, 2000ish square feet is fine, 3000ish is too much. No debt for either of us and we could probably afford much more house than we want/need.

Should we go for a 300-350k home in an "average, middle class" area with the perfect home size or should I go for a slightly more affluent area for about 100k more. I would essentially have the newest/nicest home in the neighborhood in the average area but on the lower end in the more affluent area. (Not that I care, I only worry about future resale value).

Obviously the home for 450k will have much nicer design/materials, etc. and will probably re-sell for the same value if not more. Not so sure about the 350k house.

Any tips/advice?

[jfoxcpacfp]

I’m not sure that you don’t have your priorities reversed (how’s that for a convoluted statement?) You are looking at this as strictly an investment when it’s actually a hybrid purchase: personal + investment.

imo, you should first do your due diligence on where you want to live - neighbors, how the area is maintained, distance from work and other places you will frequent, crime statistics, “curb appeal”, etc. Some neighborhoods are full of young children riding bikes and playing in each other’s yards. Others lean toward DINKs who keep well-maintained yards and there is not a lot of traffic in the streets, if you know what I mean. Does that matter to you? Do you want to live in an area where the neighbors all know each other and have block parties or cookouts in the summer? Or do you prefer a more upscale, aloof ambiance?

Once you’ve decided where you’d like to live, then choose the house that you can afford and that you believe has the best opportunity for future increased resale value. And, of course, don’t buy a house unless you plan to live there for at least 5 years.

[q-school]

typically in these situations, we buy the house my wife likes.



 

however, we don't look at the house for appreciation value, it's an expense.  it's hard to predict.  we have had houses appreciate 100k per year and houses that lost 20k per year of value.  sometimes the larger community determines the overall appreciation and ease of sale.  the lower the price, the more potential buyers.  if you live in LCOL area, 450k for 2000-3000 sq foot house may not be that easy to sell.

as you doubtless know, the rule of thumb is buy worst house in best neighborhood.

if no kids and you guys are purchasing well within your means, i don't think you should focus on maximizing possible returns.  buy for emotional pleasure of living in the house.

i understand intellectually the comment about living in a house 5 years, but i don't know if people can be as certain of that anymore.  it may be argued that physicians are more protected against that than other jobs, but increasingly that is less so in my experience.

job markets change.  hospitals are bought.  doctors are fired.  spouses have job changes.  unexpected pregnancies.  inlaws come to live with you.

 

good luck!

 

 

 

[I Find This Humerus]

jfoxcpacfp wrote:

I’m not sure that you don’t have your priorities reversed (how’s that for a convoluted statement?) You are looking at this as strictly an investment when it’s actually a hybrid purchase: personal + investment.

imo, you should first do your due diligence on where you want to live – neighbors, how the area is maintained, distance from work and other places you will frequent, crime statistics, “curb appeal”, etc. Some neighborhoods are full of young children riding bikes and playing in each other’s yards. Others lean toward DINKs who keep well-maintained yards and there is not a lot of traffic in the streets, if you know what I mean. Does that matter to you? Do you want to live in an area where the neighbors all know each other and have block parties or cookouts in the summer? Or do you prefer a more upscale, aloof ambiance?

Once you’ve decided where you’d like to live, then choose the house that you can afford and that you believe has the best opportunity for future increased resale value. And, of course, don’t buy a house unless you plan to live there for at least 5 years.

Click to expand...

What is a DINK?

This is probably 80/20 investmentersonal purchase. We could literally get by in a 2 bedroom apt but I'd rather build equity in a house. I could pay in mortgage what I pay in rent so it's a no-brainer.

 

[CordMcNally]

I Find This Humerus wrote:

jfoxcpacfp wrote:

I’m not sure that you don’t have your priorities reversed (how’s that for a convoluted statement?) You are looking at this as strictly an investment when it’s actually a hybrid purchase: personal + investment.

imo, you should first do your due diligence on where you want to live – neighbors, how the area is maintained, distance from work and other places you will frequent, crime statistics, “curb appeal”, etc. Some neighborhoods are full of young children riding bikes and playing in each other’s yards. Others lean toward DINKs who keep well-maintained yards and there is not a lot of traffic in the streets, if you know what I mean. Does that matter to you? Do you want to live in an area where the neighbors all know each other and have block parties or cookouts in the summer? Or do you prefer a more upscale, aloof ambiance?

Once you’ve decided where you’d like to live, then choose the house that you can afford and that you believe has the best opportunity for future increased resale value. And, of course, don’t buy a house unless you plan to live there for at least 5 years.

Click to expand…

What is a DINK?

This is probably 80/20 investmentersonal purchase. We could literally get by in a 2 bedroom apt but I’d rather build equity in a house. I could pay in mortgage what I pay in rent so it’s a no-brainer.

 

Click to expand...

Dual Income No Kids

 

I'd have a hard time buying a house that I'm planning on living in long term as an investment. If you're looking to be a landlord or to flip houses, that's different. Shelter is something that I must have so I have to spend money on it. For the most part, anything that I have to buy, I don't consider it from an investment standpoint. This includes housing, transportation, etc. On the other hand, if it happens to increase in value, that's just a nice bonus.

 

Also, be careful about saying that if you're renting, you're throwing your money away. Renting has basically no other expense cost whereas owning can come with very large expense. Renting is a ceiling of how much you're going to spend, owning is a floor with a potential unlimited ceiling.

[Zaphod]

double income no kids

 

[Hatton]

I have been thinking @ I Find This Humerus that your name is humorous.  Auto correct thinks so also.  I agree with the statement that houses are money pits and if you are lucky an investment.

[I Find This Humerus]

Not trying to make money on a house, but don't want it to lose a lot of value.

[q-school]

all the money made on a house is at the time of purchase.  after that, the market dictates what happens.  no one cares how much you spent on blinds or landscaping.   they look at how much you paid and how much they can get it for.   they could care less about fancy landscaping or plantation shutters or fancy lighting or thermostats, those are freebies for those.