Deciding between 2 houses to buy

[mommy111]

Help me! We are in a very high cost of living area and are looking at 2 places that are at the higher end of our budget.

1)One floor on a 2/3 family unit. Priced at 640k
Pros:
Renovated 7 years ago so fairly new appliances etc, well lighted
3 bedrooms....we really like this because the kids could have their own room and our live in childcare person (grandma, nanny, whatever) would have their own larger room although one of the rooms is in the basement
Nice open floor plan. 1200ish square feet but feels quite spacious
No need for renovation yet
Cons: We have 2 other families living in the floors above us
Common back and front areas...the front garden is small but shared, small shared deck
Parking is very narrow and difficult to back out of...you back out on a main road. No covered parking (and this is the NE and it will snow)

2) A townhouse-like property except its a single family (ie no condo association). Somewhat run down and needs quite a bit of renovating. Priced at 640k and would need an additional 20-30k of renovation over 5 years

Pros:
Own house with no one living above or below you.
Private deck and (albeit tiny) private garden that the kids could play in
Covered parking, heated and attached...this is the Northeast

Cons:
Open floor plan in the 80s style so rooms don't have doors, we would have to do some construction and add doors and walls to those rooms which would make the floor plan less 'open'....this is part of the renovation costs above
2 rooms and a study so not really 3 bedrooms although the study could be used as a kids' bedroom. There's a third add-on room next to the garage in the basement with the laundry, again tiny. Essentially 2 bedrooms with 2 bonus add on spaces.
Whole garden will need to be dug up and re-landscaped
Dark. Everything is dark and feels kinda cramped (1200sq ft over 4 floors). We could and would add lighting and repaint white as opposed to the red and funky dark walls but the wood used to make the house is drak beams as well

So 640k for the first floor/basement 2/3 family or 640k plus the cost of renovation for a small townhouse style but individually owned house?? What yould you do?

ETA: We could keep looking and keep renting but our rental lease is up for renewal and so we'd be stuck in a renting situation for another year possibly.

[SnuggleBuggles]

2 for privacy. Live in it for a while before extensive renovations as you may not need everything you think you do now.

[wellyes]

#1, no question. From the description you really seem to prefer it.

I know a lot of people would prefer to have their own space, but a lot of us don't live somewhere where a 1200 floor of a house costs $640,000.

#2, no way, renovations suck even if you don't have kids, it's dark and cramped feeling and awful. No way.

[KpbS]

My BFF lived for 5 years in exactly the same place you are describing in JP. It worked well for their family for that time. I would keep looking and perhaps rent another year if the first option didn't work out. It's a no go for me on option two.

[SnuggleBuggles]

I'm also not keen on backing out onto a busy road. That's always been on my avoid list.

[AnnieW625]

I voted keep looking and keep renting only because it sounds like you are settling on two places you aren't 100% sold on.

If I were in your shoes I could see how #1 is appealing, you are paying high dollar for a nice place you really like, but you don't like that it is a bottom unit. This would have been a no go for DH as well. We gave up on a great condo that was 200 sq. ft. bigger than our home and had an extra bathroom because it wasn't an end unit. I often regret not buying the place, but I know tha DH would not have been happy there.

I really do like the pros of house #2 though and if we were in your shoes this is what we probably would have done. In reality it is what we did. We bought a 55 yr. old house that we knew over the next 3 to 5 yrs. needed some work. We have our own yard, we are on a quiet street, and overall we liked the floor plan. Oh and no HOA fees for us (unless it was the condo of our dreams!) or Mello Roos taxes (additional property taxes to fund schools and other voted on programs) was kind of a deal breaker for us. If you are really serious about #2 I would ask yourself these questions:

1. If the house truly does need a lot of renovations (it is not just adding stainless appliances or knocking down a wall because it will flow better, etc.), why is the price higher?

2. If the price is higher due to it being in a better area, will you enjoy the amenities of the area more?

3. Does #2 have better schools than #1? If you aren't doing private this is a very important question IMHO.

IMHO if you buy either place I really think you need to ask yourself if either of these houses are your "FOREVER" house?

We didn't do that with our place as we honestly never thought we would stay more than 3 yrs. . The economy died 3 yrs. later and now we are stuck, and we live in a pretty high COL area as well.

We do like our house and seven years later we are finally starting to plan for something like a kitchen renovation (first we redid the hardwood floors when we moved in, then 3 yrs. later (2008) we replaced the windows, then in 2009 the heater died, and now in 2012 we finally repainted the entire inside of our house) in the next two years, and then not long after will be a sprinkler system and will most likely get the front of the house repainted. Ideally if money were made on trees we'd add a family room or master bedroom bath set up, but I can't see that happening anytime soon.

Don't mean to be a Debbie Downer, but really I do think you have a lot to think about.

[ett]

I would probably rent for another year and keep looking. The deal breaker for option 1 is the narrow roads and backing onto a busy road. It will only get way worse with the snow. For option 2, if you add in renovation costs, you're looking at 700k or more. And in the meantime, you'll have to deal with the cramped, dark space.

I know cost of living is high in the NE, but those prices are really, really high for what you describe. Are you set on that town or are there other more affordable towns?

ETA: If I had to choose one of the houses, I would choose #2. You can't do anything about the location of #1 (first floor, large road) but you can make the renovation changes to #2.

[jess_g]

I would keep looking. Neither place sounds ideal and once you buy you will probably be living there for quite a while. Our house is not ideal but we are pretty much stuck here until the kids grow up. Its a great town with great schools but the house has no yard.

I would love to know where you are looking that real estate is that expensive. I am thinking it must be southern California or some place equally nice.

Jen

[cvanbrunt]

We just bought a house for a staggering amount of money (to me) in the Boston metro area. That's really expensive for what you are describing in my town.

[sariana]

I say keep looking. That's a lot of money for a house you don't love.

If you HAD to pick one, I would say #2. The busy road would be a deal-killer for me. As a PP said, you can't change location, but you always can renovate. And as another PP said, you may find you don't need to do as much as you thought.

[TwinFoxes]

I voted keep looking. I bet your LL lets you go month to month. I've never had to sign a lease after the first year.

[AnnieW625]

We just bought a house for a staggering amount of money (to me) in the Boston metro area. That's really expensive for what you are describing in my town.

I was thinking the same thing too and I have only ever visited Boston, and while I think the prices are high I have a hard time believing they are that high unless it was a trendy area like Fenway, or a really really nice area like Wellesley, Brookline, or Newton.

[arivecchi]

I voted keep looking. I bet your LL lets you go month to month. I've never had to sign a lease after the first year.:yeahthat: It's too big of an investment to settle. I would keep looking and negotiate a short lease or a month to month extension in the meantime. I bet you will find better deals in the fall/winter.

[jent]

I voted keep looking. I moved to the Boston metro area last year (and we decided to rent for at least another year), so I feel your pain!

Given the costs you describe, I am guessing you are choosing somewhere very close to the city to minimize your commute time, and looking for a nice town/neighborhood/schools where you would actually want to live. That's where DH and I keep getting stuck.

[Tondi G]

Oops I voted wrong ... I would keep looking. having minimal outdoor space on #1 would be a bummer as does the parking situation and being on a main road.

the second one sounds like it could be a real PITA with all the renovations needed to make it livable to your needs.

[wellyes]

Oh, JP? That's part of the lottery school system, right? Or are you in a JP school and that's why you want to live there? Don't feel you have to answer (obviously) but -- to me -- I really can't think of anything JP has that, say, West Roxbury or Milton doesn't.

[khalloc]

Neither one sounds that great. Keep looking. Are you set on Jamaica Plain??

[ett]

Oh, JP? That's part of the lottery school system, right? Or are you in a JP school and that's why you want to live there? Don't feel you have to answer (obviously) but -- to me -- I really can't think of anything JP has that, say, West Roxbury or Milton doesn't.

A PP said her friend had a place like that in JP, but I don't think OP mentioned her town.

[mommy111]

To answer a few questions:
Wish we lived in sunny Cali but we're in the Northeast. Although we do love where we live. Not JP but yes, right in town, cannot move because of school/work/childcare reasons, we would be adding about $10k in childcare yearly and more for a new car if we were to move away from here. So we cannot move very far out.
It does feel like we're 'settling' if we buy these places and 640k is a lot of $$ but its the norm here, I guess. I think I'm going to take the advice here and hold off on buying and see if we can go on a month to month lease. Things only have to get better in the winter, right?

[hoodlims]

I voted keep looking, but if I had to choose, I would choose #1, if this is a common style of living where you are.

I went through a major renovation with a baby, and it was TERRIBLE. Hard to get baby settled for naps, gross dust flying around everywhere, kitchen/living room/dining room all shoved into 1 (and the house is already tiny), crawling kiddo + dangerous things on the floor...I will never, ever, go through that again, and recommend the same to every other family with young children. Now, if your kids were older and you had more space and less invasive renovating (we did a gut remodel on our kitchen/dining room), I would go for #2.

[kijip]

:yeahthat: It's too big of an investment to settle. I would keep looking and negotiate a short lease or a month to month extension in the meantime. I bet you will find better deals in the fall/winter.

I totally agree. Do not drop that kind of money on a house that is a big compromise.

[ChristinaLucia]

#2 for sure for me. Or just keep looking and renting!

[vonfirmath]

I'm still trying to wrap my mind around paying $640,000 for 1 floor of a house -- both being able to BUY just 1 floor of a house. And paying that much for it. How does anyone afford that?!

[HannaAddict]

Keep looking! Can you do a three or six month lease or month to month. For the money, I would say number 1 if you had to buy since the dark, no light would be a deal breaker and you really can't fix that. Can you keep looking?

[citymama]

Keep looking. You will find something you can afford that you also love.

We live in a high col area where it seemed like we'd never find a place and would be renting forever. Admittedly it took 1.5 years and 5 offers we were seriously outbid on, but we did find our 3 BR, 2 BA in the exact neighborhood we wanted in our range (higher end for sure) in perfect condition. Few cons that we could live with but soooo much better than many places we were ready to "settle" on. Wait - it's right around the corner!

[janine]

I vote keep looking. Neither sound ideal and it's a buyers market.

640K is alot, personally I'd want my own house and backyard (without people above me) at that price point. It's ok to find a home that needs work, but then negotiate the price down.

ETA we also did a major reno/expansions with a baby. It's to doable and in the end worth it. Just be sure you have back up place to stay (parents etc.) for the worst construction.

[crl]

I vote keep looking. Neither sound ideal and it's a buyers market.

640K is alot, personally I'd want my own house and backyard (without people above me) at that price point. It's ok to find a home that needs work, but then negotiate the price down.

Not everywhere is a buyers market. And it is not possible to buy a SFH with yard at that price point in some locations. Real estate is very location specific.

Personally I'd choose number two if I had to because you can never change the layout of the single floor condos/townhouses and I would hate being at the mercy of neighbors above me. Whether I'd keep looking would depend on a lot of things including how long I had already been looking. Inventory is usually at its highest over the summer in most places.

Catherine

[blondflava]

I voted keep renting, save as much as you can during the next year for possible renovations and then pick the house you really love, even if it needs updating, from your post it seems like you feel you have to choose out of the two, but you're not really convinced about either one.
We're renting a half of a duplex, the neighbors live next door. The shared backyard sucks more than I anticipated, granted we rent, but I suppose sharing an owned space with other people with their own ideas of decorating will be as difficult.. And this comes from a person moving from an apartment with NO outdoor space, so I'll take any space outside gladly. Still, it's tough. The one good thing, DD has the neighbor twin girls to play with LOL. But there's no privacy, our outdoor playdates coincide with the neighbor's sometimes, and it's not a big space. I'd not want people above us as well, sharing side walls is different, we still hear A LOT going on there, but people upstairs is a whole different ballgame...
IMO, I'd rather rent longer than buy a house I'm not 100 % percent I love, there are things I'd give up in a house, but you just don't sound convinced... Sorry :(.

[janine]

Not everywhere is a buyers market. And it is not possible to buy a SFH with yard at that price point in some locations. Real estate is very location specific.

Personally I'd choose number two if I had to because you can never change the layout of the single floor condos/townhouses and I would hate being at the mercy of neighbors above me. Whether I'd keep looking would depend on a lot of things including how long I had already been looking. Inventory is usually at its highest over the summer in most places.

Catherine

True to a degree, but I don't believe about it not being possible. We are in one of the most expensive areas (just outside of NYC) and the market never really tanked luckily. Still we were able to find a SFH with a small yard around that price point. It did require some compromise (neighbors closer than I'd like) and quite a bit of work to it. If we had compromised even more, it would have been possible to buy a home that did not require such work (one town over,etc). So if I had to choose, it'd be #2, but the description just did not sound ideal, so personally, I'd keep looking. This is about as much of a buyer's market as it's going to get.

[musicalgrl]

Having people living above me would be the deal breaker for me. Not every neighbor will be noisy, but if you get one that is it really stinks. If I had to make a choice, I'd pick 2. But if renting is an option I'd do that before buying something I don't love.

[roseyloxs]

If you HAD to pick one, I would say #2. The busy road would be a deal-killer for me. As a PP said, you can't change location, but you always can renovate. And as another PP said, you may find you don't need to do as much as you thought.

:yeahthat: Backing out from a narrow driveway into a busy road sounds like a nightmare. White walls and dark wood beams sounds pretty awesome to me but you still need some natural light to help you out with light.

[Mommy_Mea]

I would keep looking as well. I wouldn't want people above me, so #1 would get thrown out. Our house has low ceilings and is dark, and it is depressing during the winter no matter what we do with lighting and paint. So don't get yourself in that mess with #2. Can you find out if you sign a 1 year lease of you can break it for a fee? We always rented in large complexes that spelled out the penalty for breaking the lease, so we knew what we would be out if we left early. Also, the landlord had to attempt to rent the apartment and can't double collect rent, so you may be able to get out of the lease early. Talk with your landlord if possible, they might be really understanding!

Sent from my LG-VM696 using Tapatalk 2

[crl]

True to a degree, but I don't believe about it not being possible. We are in one of the most expensive areas (just outside of NYC) and the market never really tanked luckily. Still we were able to find a SFH with a small yard around that price point. It did require some compromise (neighbors closer than I'd like) and quite a bit of work to it. If we had compromised even more, it would have been possible to buy a home that did not require such work (one town over,etc). So if I had to choose, it'd be #2, but the description just did not sound ideal, so personally, I'd keep looking. This is about as much of a buyer's market as it's going to get.

Again this is so location specific. I live in San Francisco. There are very few single family homes that don't touch, or very nearly touch, the walls of the houses next to them. Most of the city is townhouse in style if not in name. Many of those are further subdivided into flats in some parts of the city. I have never seen a single family house for sale in the city that doesn't touch the walls of the houses next to them (or so close as to make no difference, ie two or three inches apart) for under two million.

In the area we are looking, inventory is down 75 percent from this time last year. One house we were interested in got twenty three offers in four days on the market. (We never saw it--long realtor sob story.). I don't characterize that as a buyers market. Whether things will get better or worse in the coming months isn't clear to me, though if forced to guess, I would say in our area prices are going to start ticking up again and inventory will stay low. So I feel like this summer is likely our best time to buy from a market condition perspective--although that is not what is driving our house search.

Catherine


ETA. On further reflection, there are homes in the $650,000 and up category that are not townhouse style in the city. They are almost exclusively in the Sunset so you have a commute and a lot of fog and it is very suburban in feel. I tend to forget about the Sunset. But, if some is looking to minimize commute, the Sunset isn't a good choice. . . .

[twowhat?]

We would have ruled out #1 right away since it's not single family --- but that's coming from an area in which single family is the NORM. If in your area single family homes are hard to come by then you have to decide whether it's worth the wait to find a single family that you like. And it depends on how high you prioritize privacy, of course.

That being said, I still don't think the shared unit is all that great since you'd be on the lower floor - you'd hear all the thumping, etc from upstairs. That would drive me batty! And backing out onto a busy street would've been a no-go for me too.

Good luck in your decision and search! FWIW floor plans that aren't as "open" isn't such a bad thing with kids...sometimes you just want somewhere to go to get away from noise and in our very open floorplan house it is IMPOSSIBLE, plus at night we have to be quiet no matter where we are in the house. Yes, there are pros to it of course, but also cons:)

[FTMLuc]

A big NO on #1. Being on the 1st floor plus backing out onto a major road with a narrow space is a deal breaker for me. I am imagining homes like this in the Southie, and on the street parking would also be a nightmare if you had visitors/guests. I personally would rent for another year and keep looking. If I absolutely had to buy, I'd go with #2, at least the headache of the narrow shared driveway and neighbors above you will not be there.

[wellyes]

Am I the only one who thinks having neighbors above isn't awful? It's just part of urban life, sometimes. The older and more rickety the home, the worse it can be. But almost everyone I know lived in an apartment or a floor of a multi-family at some point. It's not hell on earth. Frankly, I preferred it over all the yardwork and semi-isolation of the 'burbs.



True to a degree, but I don't believe about it not being possible. We are in one of the most expensive areas (just outside of NYC) and the market never really tanked luckily. Still we were able to find a SFH with a small yard around that price point. It did require some compromise (neighbors closer than I'd like) and quite a bit of work to it. If we had compromised even more, it would have been possible to buy a home that did not require such work (one town over,etc). So if I had to choose, it'd be #2, but the description just did not sound ideal, so personally, I'd keep looking. This is about as much of a buyer's market as it's going to get.

I think the difference is being in a city vs "just outside". There are areas where single family homes are just not the norm.

[AnnieW625]

Not everywhere is a buyers market. And it is not possible to buy a SFH with yard at that price point in some locations. Real estate is very location specific.
........
Catherine

This in general is pretty true in my area now, it is a buyers market to a degree if you don't mind buying a foreclosure or short sale, but if you aren't willing to deal with a bank, potential pit falls of buying an as is only home our area is still very much a sellers market. Common situations here are if the owners bought in the 80s or 90s and maybe even early 2000s and have a lot of equity that they can wait for their home to sell and be picky about what they want price wise and such. Unless they have move there are very few homes in this area that I truly believe are under priced that aren't short sales or foreclosures.

So while I did say initially that I thought the $640K price tag for one of those houses in the OP's city I thought was a tad high maybe the situation does dictate the higher price tag because the homes are not foreclosures or short sales and therefore are homes that would be classified as being part of a classic sellers market.

Wellyes, I love having neighbors as well. While we aren't the "Desparate Housewives" or a typical suburban hood where the kids play with each other all of the time and we know each others business it is soo nice to know that others on my street are looking out for us and I like to think that they know we are looking out for them as well. I don't think I would have that security if we lived out in the middle of nowhere or even a mile from the nearest neighbor and had no one near us to help us in an emergency situation (and while guns are protection and required IMHO if you don't have close neighbors or law enforcement close I still think they need to be used in the last resort....sort of a tangent, but you kwim?)

[Kindra178]

Am I the only one who thinks having neighbors above isn't awful? It's just part of urban life, sometimes. The older and more rickety the home, the worse it can be. But almost everyone I know lived in an apartment or a floor of a multi-family at some point. It's not hell on earth. Frankly, I preferred it over all the yardwork and semi-isolation of the 'burbs.



I think the difference is being in a city vs "just outside". There are areas where single family homes are just not the norm.

I agree with you. I love cities/ urban areas. I am not in the camp that suburbs are the best for kids.

[crl]

Am I the only one who thinks having neighbors above isn't awful? It's just part of urban life, sometimes. The older and more rickety the home, the worse it can be. But almost everyone I know lived in an apartment or a floor of a multi-family at some point. It's not hell on earth. Frankly, I preferred it over all the yardwork and semi-isolation of the 'burbs.



I think the difference is being in a city vs "just outside". There are areas where single family homes are just not the norm.

I like density, mostly because I really, really like being able to walk places. And we happily owned a duplex for eight years and currently live in a townhouse style four plex rental unit and love our neighborhood. But I would not like having people live above me. If it is a quiet couple who works during the day, great. But then they have a toddler who stomps and throws things during my baby's nap. Not great. It's just not ideal and I would choose other compromises over that one if I had a choice.

Catherine