*Although we cannot make any promises that we will follow it.
Here's the setting:
I have a very high risk tolerance for investing, while Tom is a very conservative investor. However, we both have a pretty low risk tolerance when it comes to purchasing our first home.
Here's the situation:
Right now we are trying to choose between 2 houses, and all the implications therein.
House 1 is urban, which means:
Affordable
Excellent rental income (we are only looking at multi-families).
On-street parking only.
Nice sized yard.
9 rooms on 2 floors.
Needs updating . . . we could move in as is, but really we want to:
paint it (inside)
redo all the floors on 2nd and 3rd floor
dormer out entire 3rd floor with many windows, adding closets and bathroom
change owner's unit to gas (only unit left on oil heat for some reason)
add trim to windows (frames inside removed during a deleading renovation)
generally fix everything that didn't get fixed in owners renovation: lots of details
update kitchen and 2nd floor bath
add built in bookshelves/cabinets
add hall closet
We could live in this house, eventually get all this work done, and still go on dinner dates, visit family, etc . . . We could even retire someday!
As for schools, it would be a lottery of urban schools, some really good, some ok.
Commute . . . could be better. But easy walk to the train is a plus.
Resale potential: if we did all the work above, we would be worried about getting our money back out. We'd have to hold on to it for a while (10 years?). This urban area is always on the cusp for gentrification . . . maybe this time it will happen!
House 2 is suburban, which means:
Barely affordable, really tight till we can stop paying for daycare
Ok rental income
Driveway . . . but narrow and would have to do shuffle with tenants to get in and out
Nice sized yard
7 rooms on 2nd floor, plus unfinished attic space
Move in condition! Gleaming floors, awesome retro kitchen.
We'd probably need to update the rental unit to maximize rent potential (still no where near the urban potential). We would also eventually want to dormer out the 3rd floor and add a master bedroom/office/bathroom. But have no idea where the money would come from for this as it would all go into just buying the house!
Suburban schools a no-brainer all the way through high school.
Living in this house would mean money was tight until we could stop paying for daycare. And even then, we wouldn't be rolling in the dough. We would just be able to start saving again after a 5 year hiatus while waiting for kindergarten to start.
Commute is pretty dreamy, walking distance to the train.
Resale potential: cake. No problems there.
Basically, it comes down to risk tolerance. Can we risk buying the house in the better neighborhood, knowing the value will hold/grow quickly, while we are barely scraping by month to month. Or are we better off buying the house that with some effort (and cash) we could turn into a pretty dreamy living space, and still have money to save AND spend every month.
. . . not to mention the adoption factor! House 1 (urban) would surround Alice with diverse families, many from Guatemala! House 2 (suburban) . . . probably not so diverse! Ad the adoption literature I read encourages parents of people of color to move to more diverse neighborhoods if they have the chance.
I hope I was neutral enough in both of my descriptions to solicit opinions. Of course, Tom and I will make a decision and of course it will be the right decision for us. I am writing not only to document for Alice how her parents agonized over this decision, but also because I really am curious if any of you have advice/see an angle we aren't thinking of . . .
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9 comments:
Alright! Send us an email if you don't want to post it, but what suburban town??? Details, please!
We'd vote for the no-risk good school, especially since if you do all the work you want to, to the urban home, then you are kind of stuck there for 10 years - and what happens if Alice gets in an "ok" school not a good school? I'm also the kind of scared investor who doesn't like to gamble and a neighborhood is huge for property value. You can't beat the suburban one.
But that's just my 2 cents - to beh onest I'm just excited you found 2 you like! We'll come see you wherever you live!
I'm with Julie. The renovations might be a NIGHTmare. Years and years of hassle. Nothing beats "move in" condition and good schools. I'm not sure any of the urban schools are OK. We'll let you know next year. ww
That is a tough one...of course I vote for urban/diverse, but then you've got the g.d. BPS to contend with. I'm in the same boat, babe. I just dunno.
Hi Cheryl,
Weighing in from the west coast because I find these topics endlessly interesting:
go urban!
Good luck with the decision.
Sam
Speaking as suburbanites, we both agree the suburban option. We don't even like the 'burbs all that much, but you've got lots better things to do than fix a broken house---like spend more time with that cute little kid.
How's the suburban town center? Got your coffee place, bookstore, funky little restaurant? You need that.
Let us know what you decide.
Steve and Lori
If you go urban, you're stuck in the place for 10 years, have to endure a lot of renovation nonsense, have a less than stellar commute, and have to cross your fingers with the BPS. The plus? Diversity and income potential. If you go suburban, you're cash-strapped for a few years and are in a less diverse neighborhood--but you don't have to endure as much renovation nonsense, or the trap of being in one place for ten years, or the fear of Alice being stuck in a less than adequate school. If it were my family, we'd go suburban. This from the woman who chose to move to a condo in JP instead of a house in Arlington. But do as I say, not as I do! Good luck, hon. Whatever decision you make will be the right one.
I vote urban. Living in the suburbs does not guarantee your child will go to a better school than if you live in the city. Plus, when exactly do you think you will not be paying for daycare? Here, you have to pay extra for all day Kindergarten plus before and after care.
I'd argue for the urban area. As the parent of a child with an ethnic background different from yours, the fact that there will be a community for Alice in your neighborhood is a huge gift to her.
The school issue will take care of itself. With bright and concerned parents -- and parents who will be involved with Alice's education -- you'll have some measure of input in the public school she attends. And again, the public schools will have a greater diversity, allowing Alice first-hand experience with people.
The suburbs don't need you. The city needs you, the city needs Alice, and, you know, vicey-versy.
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