Probably a stupid (home buying) question, but...

[bobodad]

I'm still not sure whether to continue renting for a few years or buy a home, but if I do buy, I'd probably build. If I build or buy, the question becomes how much house should I get. With my only child, D12, 6 years away from college, it would just be me in the house after that (we have 50-50 week on-week off time sharing). Logic would suggest I get a smaller home (3/2) for my "needs." One could argue that prudence suggests I opt for a larger home (4/2), since if I ever do have/want to sell, a 4/2 has a bigger market of buyers than a 3/2. I have a small amount of debt, I have excellent credit, and I can afford either one (with the divorce buyout $s for the down payment), but the ~100/month mortgage payment difference would be nice to have in my pocket for other things. This wouldn't be for speculation, it's (hopefully) for the long haul. I like my city and this specific area, I like my job, and I'm pretty sure I could find another job here.

Another factor is that for this one builder whose floor plans I like, I like the 4/2 house/plan a lot more than I like the 3/2 house...a LOT more.

Any advice?

Thanks!

[bobodad]

Thanks for the reply. I'm going to talk to my realtor to get his advice, since he's tuned in to the local market.

On the 4/2 vs 3/2 issue, for me it's a matter of do I need the extra space in a 4/2 (and the extra cost). To your point about neighborhoods, every hood up here is a mix of homes, and some 3/2s could have more sqft than a 4/2. So maybe I should be focusing on square footage instead of beds/baths.

Also, most of the used homes for sale in the hoods I like are priced crazy high. I realize the seller is starting high for the eventual negotiations, and they also think the new carpet and cabinets they put in four years ago are worth $20k, but the two new construction options I'm considering (new development near all the old homes) are priced lower than most of the 12 year old homes for sale.

Renting just doesn't appeal to me. I like the idea of pulling right up to my home and having a yard for the dog and to play soccer with my kid. For some reason I really don't like having to go to a bank of mailboxes to get my mail...gimme my own mailbox at the end of my driveway.

New construction appeals to me, because the homes will be built to the current code, with better energy efficiency, and new materials.

I don't know. Where's my realtor?!?!?!?!?!?!?!

[Tyrell]

Funny how different people live,
My daughter (13) and I are in a 2/1 at about 950 sf (rental-single family house). Been here for 4 years. It was more about location than size at the time, 10 min from work, 10 min walk to school.

For me this works great, less to clean and creates a certain "togetherness" that I think is good.

Although I've noticed a serious uptick in the amount of time my D13 is in the bathroom latey, I'd venture a guess that this will increase in the coming years. It does cause some problems, so lets just say I've "watered the lawn" in the back yard more than few times

Why not rent a home (not an apartment). You can rent cheaper, you don't have to deal with maintenance, and with the market relativly flat it dosent look like you'd get much of a return on your investment in the short term. Just wondering.

[bobodad]

Tyrell,
Homes in this area are renting at outrageous prices, probably due to more and more people moving to the "want to rent" side of this dilemma...supply and demand. I was lucky to find my 3/2 townhouse at 1500, and it's about 7 miles from my old neighborhood (I'm looking to buy in that same old area, which is where the ex-marital home is...xw has it...and where D's middle and eventual high schools are). 3/2 houses in that area are renting for 1700-2000, and those are the ones that are not in good shape. I honestly don't get it...I guess all the people who bought high before the bust are looking for suckers to pay their mortgage for them.

Are you in Manhattan or San Francisco? You don't see any 950 sqft 2/1s in the 'burbs.

[Tyrell]

I'm in Tucs0n, there's a fairly large house stock here from the 30's and 40's, small 2 bedroom free standing houses. They rent fairly cheap compaired to purchase price. A place like mine you can get from $750-$1100 per month, depending on location and condition. My neighborhood is just far enough from the UA that we don't get many college renters, probably 75% of the homes on my block are owner occupied.

So I'm in town, and probably less than 10 min from downtown, but my neighborhood would have been the burbs 50 years ago. Tucs0n is so spread out that there isn't any real density like you'd find in NY or San Francisco, so almost anywhere feels like the burbs, and actually there's very little density like you'd see in a similar sized east cost or mid west city.

Unfortunatly I'm in a position where the divorce, and the actions of my X pretty much destroyed my credit, so my only option for awhile will be renting. Although, what I've found though is that its really nice when the AC quits I just call the landlord and it's someone elses problem. And I like the idea of having some mobility. I can be out with only a months notice if I needed to.

[Thermite]

It never ceases to amaze me when other members here chime in about home & rental prices in their respective areas. One in my neighborhood recently sold for $25K, and it was over 1500 sq ft, plus an unfinished basement, plus detached garage, porch space, and nice yard. I'm certain the mortgage would be less than $250 a month, and figure another hundred for taxes & insurance. Renting is much more expensive than buying in this area.

[CCR]

It really depends on where you live. My best friends house, appraised at $410K in 2007 (and it's just a decent 5bdroom, 20 year old house in a decent neighborhood) has fallen to $240K. My house has dropped in half. With that said, rents have stayed about the same.

It made more sense to rent a few years ago, but buying or building is now a decent option also.

[MrCoolDC]

My 2 cents: get as many bathrooms as you can, and especially bathrooms attached to bedrooms (I think the pros label these "ensuite bathrooms"). In the future more adult children will be living in parent's houses, and more in-laws will be living in their children's houses. 3/3 or 4/4 is good.