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Old 01-25-2017, 08:01 AM
 
12,404 posts, read 9,199,643 times
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Quote:
Originally Posted by Submariner View Post
Why would you assume that all these things would be higher ?
Taxes - this one is based on property value, so for more expensive house it would be higher, all else equal.

Insurance - If the insured value is based on rebuilding the house, then this would be higher if the house is more expensive due to the structure, but not if it is more expensive due to the land.

Maintenance - Depends. If the house is more expensive because it is larger, then yes we would expect maintenance (and utilities) to be higher, all else equal. Larger HVAC unit, more square feet of anything to replace, larger roof, etc. means more $$$$. On the other hand, if the house price is higher strictly because of location (land value), then this would not apply.

Interest - this one's easy, if you borrow more money you pay more of it, all else equal.
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Old 01-25-2017, 09:25 AM
 
Location: Arizona
289 posts, read 177,911 times
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I could if necessary. I grew up in lower to middle class all-black/mexican neighborhoods that many on CD would consider to be "the ghetto" and that living there would be unthinkable. They weren't bad at all and mostly just consisted of hard working families. My mom still lives there now and her mortgage is so hilariously low. And my grandparents retired very early due to owning a very inexpensive house in a lower income area.

Now I live in a nicer, heavily gentrified neighborhood and the perks are nice, I have to admit. Lots of higher end restaurants, specialty grocery stores, and shops. The crime is low and all of it is non-violent stuff like theft/burglary. But if I ran into hardships and had to move to a lower income neighborhood, it wouldn't be the end of the world. I think my simpler upbringing would prepare me for it and it wouldn't be so much of a shock.
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Old 01-25-2017, 10:29 AM
 
Location: Forests of Maine
29,722 posts, read 47,483,706 times
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Quote:
Originally Posted by ncole1 View Post
Taxes - this one is based on property value, so for more expensive house it would be higher, all else equal.

Insurance - If the insured value is based on rebuilding the house, then this would be higher if the house is more expensive due to the structure, but not if it is more expensive due to the land.

Maintenance - Depends. If the house is more expensive because it is larger, then yes we would expect maintenance (and utilities) to be higher, all else equal. Larger HVAC unit, more square feet of anything to replace, larger roof, etc. means more $$$$. On the other hand, if the house price is higher strictly because of location (land value), then this would not apply.

Interest - this one's easy, if you borrow more money you pay more of it, all else equal.
You are assuming a bunch of things simply to support your bias.
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Old 01-26-2017, 08:04 AM
 
Location: Bella Vista, Ark
69,278 posts, read 79,447,244 times
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Quote:
Originally Posted by pvande55 View Post
To use a trite phrase: it's risk vs. reward. But I stand by my original statement: if you buy in the right low-income neighborhood, you could make out like a bandit. It's saved a lot of folks who could not afford anything better.
I do not believe the subject is "if that is all you can afford?" It is would you buy in a low income area just to save money. Of course it is all you can afford, go for it. Many of us started out buying in areas that were not top of the line, but it gave us our start. I don't think you are seeing the question the same way I do or did?
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Old 01-26-2017, 05:30 PM
 
1,279 posts, read 1,169,606 times
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My first house was in a so-so neighborhood. There was constant crime and trouble all around. The turnover in neighbors even as owners is very high. Both of the houses on either side of me changed hands 3 times each in 6 years. Alas, my biggest beef with the location was the busy street, not the neighborhood, though I did not feel comfortable with the seedy people in the area at all.

I've since inflated my lifestyle to be in a safer neighborhood, but the homes are 500-700K because newer houses in this area are bigger and nicer so the developers can get more money out of it. I don't like the expense, especially since most of the house is empty, but I prefer not living in a neighborhood that's a scene from Gangsters Paradise.

I will say, life is not always peachy living in a more expensive area either. Neighbors are snooty and political, jockeying for position. In the lower end blue collar neighborhood they are more the BBQ and beer all day every day types...Here everyone sues each other and complains about their yacht or their million dollar home being too small.
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Old 01-26-2017, 07:47 PM
 
Location: Downtown Phoenix, AZ
15,832 posts, read 5,395,558 times
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I've always stretched my budget to get into a nicer neighborhood. I remember when I was looking for my first apartment, I looked at some cheap options in "the hood" and one of them ended up having a murder in it a year later!
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Old 01-27-2017, 02:54 PM
 
5,419 posts, read 8,204,255 times
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I live in a low income/working class neighborhood because I like the scenery.

One thing that hasn't been mentioned that saves money is I won't buy a flashy car. It seems like bad manners, plus I try to blend in.

My fixed housing cost (taxes & insurance) is about 2% of my income so that's pretty frugal.
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Old 01-28-2017, 09:36 AM
 
Location: Bella Vista, Ark
69,278 posts, read 79,447,244 times
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Quote:
Originally Posted by creeksitter View Post
I live in a low income/working class neighborhood because I like the scenery.

One thing that hasn't been mentioned that saves money is I won't buy a flashy car. It seems like bad manners, plus I try to blend in.

My fixed housing cost (taxes & insurance) is about 2% of my income so that's pretty frugal.
yes, that is pretty frugal alright and if you are happy and feel safe, good for you.
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Old 01-29-2017, 03:33 PM
 
5,419 posts, read 8,204,255 times
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Yes, I'm very happy and safe. It helps to have great neighbors.

It's a myth that all cheap neighborhoods are dangerous. But you need to do on the ground research, talk to the neighbors, etc.

I'm not advocating that anyone live in a war zone, but even if the area is known for property crime there are things you can do like having a dog or burglar alarm. A very frugal option is buy a duplex and rent the other side to someone who works the night shift.
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Old 02-01-2017, 07:41 AM
 
Location: Way up high
14,072 posts, read 20,140,553 times
Reputation: 14320
No no no. We pay a lot to keep the riff raff out
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