Downtown vs. Suburbs...aaaaaaaaaaaargh! (Knoxville, Franklin: real estate, apartment, to rent)

[BCA18]

Aaaaaaaaargh I just got into the longest debate with my boyfriend about living downtown vs. the suburbs....the rundown:

My Take: For our starter home, we should try to find something in downtown Nashville. The re-sale value is virtually guaranteed, especially if we're near Vandy. Plus we save on gas b/c I can ride the bus for free and if he needs to go to Cool Springs he can take my car instead of his gas-eating truck...not to mention we don't have to commute downtown twice on Preds gamedays. And obviously we're close to everything and may be able to find a cool, unique home.

His Take: For our starter home, we should try to find something in the suburbs b/c we'll make the most money. You can buy a bigger, better house in the suburbs with the same money it costs to buy a crappier house downtown. We should buy the most house for the money that we possibly can, and if it's in a growing area we'll make way more money re-selling it than we would re-selling a house downtown...which would make saving money on gas a moot point.



I get his general principle: it's best to buy low and sell high, and in the suburbs you can definitely buy low and still get an impressive amount of house in terms of square footage...and you can get a brand new house. Downtown, you sacrifice some size for location...and you probably can't get a brand new house unless it's in an "up-and-coming" (read: still kinda ghetto) area.

But can you really say that you'll definitely make more money selling a house in the suburbs vs. selling a house downtown? Downtown is a sure thing for the most part...if you have a decent house, it WILL sell. The suburbs, not so much. You could have a decent house and it still might sit on the market and not sell well...it's harder to predict which areas will be thriving and growing, especially since we can't really afford much in Brentwood/Franklin. And just b/c a house is newer and bigger doesn't mean it's worth more...at least not to me.

He says he's open to anything I can show him that would make a lot of money on the re-sale downtown, but what I really think he's saying is he'll be open to anything downtown that's the same square footage/niceness that he can get in the suburbs for the same price...and that's just not gonna happen.

I know I already started one thread today, but I'm so frustrated! Can any real estate pros out there give me some insight into this debate?! I'm pulling my hair out over here!

[JMT]

Originally Posted by Ally6729

Aaaaaaaaargh I just got into the longest debate with my boyfriend about living downtown vs. the suburbs....the rundown:

My Take: For our starter home, we should try to find something in downtown Nashville. The re-sale value is virtually guaranteed, especially if we're near Vandy. Plus we save on gas b/c I can ride the bus for free and if he needs to go to Cool Springs he can take my car instead of his gas-eating truck...not to mention we don't have to commute downtown twice on Preds gamedays. And obviously we're close to everything and may be able to find a cool, unique home.

His Take: For our starter home, we should try to find something in the suburbs b/c we'll make the most money. You can buy a bigger, better house in the suburbs with the same money it costs to buy a crappier house downtown. We should buy the most house for the money that we possibly can, and if it's in a growing area we'll make way more money re-selling it than we would re-selling a house downtown...which would make saving money on gas a moot point.



I get his general principle: it's best to buy low and sell high, and in the suburbs you can definitely buy low and still get an impressive amount of house in terms of square footage...and you can get a brand new house. Downtown, you sacrifice some size for location...and you probably can't get a brand new house unless it's in an "up-and-coming" (read: still kinda ghetto) area.

But can you really say that you'll definitely make more money selling a house in the suburbs vs. selling a house downtown? Downtown is a sure thing for the most part...if you have a decent house, it WILL sell. The suburbs, not so much. You could have a decent house and it still might sit on the market and not sell well...it's harder to predict which areas will be thriving and growing, especially since we can't really afford much in Brentwood/Franklin. And just b/c a house is newer and bigger doesn't mean it's worth more...at least not to me.

He says he's open to anything I can show him that would make a lot of money on the re-sale downtown, but what I really think he's saying is he'll be open to anything downtown that's the same square footage/niceness that he can get in the suburbs for the same price...and that's just not gonna happen.

I know I already started one thread today, but I'm so frustrated! Can any real estate pros out there give me some insight into this debate?! I'm pulling my hair out over here!

What about where you will be HAPPIER living? Is money the only thing that your boyfriend is concerned with?

I lived out in the suburbs of Knoxville when I first moved here and HATED IT. Sure, I had a bigger house and bigger yard with less money than if I lived in the city, but it drove me absolutely batty to live in the suburbs.

Now I live in a home in the middle of the city and LOVE LOVE LOVE it for the same reasons you mentioned about city living.

It seems to me that living where you will be happiest is worth a certain amount of money. If your boyfriend can honestly say that he'll be much happier out in the suburbs, then maybe that's where you should live. Otherwise, if you can afford to live in the city, and if it's where you'll both be happier, maybe it's worth the lower profit you'll make when you sell in a few years.

[Jzer21]

What downtown houses are you talking about?

[Mike in TN]

In either situation I wouldn't count on making a profit. Sure, it would be nice, but you can't control what the market will be like.

[mad fiddler]

Originally Posted by Mike in TN

In either situation I wouldn't count on making a profit. Sure, it would be nice, but you can't control what the market will be like.

Exactly, especially over the short term.

One scenario: Energy prices skyrocket. That bigger house gets harder to heat, and fewer people want to make that commute. Houses in the suburbs become a little less attractive for people working in the city. Even if they want to live there, high energy costs limit what they can spend for housing.

[#Littledog]

I hate to sound like a mom, but I was your age not too long ago (I'm 38 but I still feel like I'm 25 ) and I have friends your age whose decisions made them very unhappy in the long run. I hope you find this helpful and not take this the wrong way.....I'm concerned that you're buying a house with someone who is your boyfriend and not your husband. If you want to move into an apartment together, go for it, but a house is an enormous emotional and financial investment. I know you say you're getting married, but is the date set and is the wedding 3 months away? I'm sure you love each other very much, but I would caution against signing your name to any house if he is not your husband or very soon will be your husband. I'm saying this because I have friends who have completed similar transactions and if the relationship breaks up, it can be nightmare in terms of who gets what, etc. My friend who went through this felt like she was going through a divorce but she wasn't married. Also, I've seen too many couples who invest so much financially before the marriage (i.e., house, furnishing the house, wedding expenses) that if they start to have second thoughts they don't want to pull out because they've "spent so much" already. Whatever you decide, I hope it works out for you-just don't sell yourself short. Make sure your emotional needs are getting met.

[MarkDaugherty]

I think the fundamental question is which location will provide the best quality of life for you. I'd leave the value question out of the equation until you decide what area best suits your lifestyle. Once you decide that, you can address the value question. If you think you are going to be in the house more than five years, you should come out okay with either choice. If you're not sure how long you'll keep the house, you are probably better off renting until your future plans are more clear. Renting also gives you a chance to "try out" the neighborhood to see if it really meets your needs.

[EvelynTN]

In 5-7 years when you sell, your almost new suburban house will likely be competing with brand new construction just a few miles further out. Or an identical house a few streets over. There will be a 'cap' of sorts, based on comps, of what your house will sell for.

There is a limited supply of older homes close to downtown. In 5-7 years, where ever you are living will likely become more gentrified. That is a big plus. Since there is such a range of house size, style, conditions, it is more difficult to get 'comps'. So pricing trends can be 'bumpy'. As prices rise in urban neighborhoods, there is always a house or two priced 'way out there'. Then, that overpriced houses sell. And the trend continues...

However, please do consider your lifestyle. Living in an older house is more inconvienent. There are always maintenance issues, and they sometimes take more ingenuity to solve than those of a brand new house. Spaces are smaller, so purging possessions and keeping things organized is a must.

You will also cross paths daily with people who are very different that what you have encountered growing up in Brentwood. I encourage you to ride a city bus, even near Vandy, sometime. Fill up you tank intown, say off of Church street near the interstate. Run into the Apple Market near Centennial Park. If you are uncomfortable in these situations, living in town will likely be stressful for you. And these three suggestions are pretty much 'urban-lite'. Once you move, you can ride you bike to work, fill up at the Shell station in Hillsboro Village, and shop at the Harris-Teeter at 21st and Blair. But, the urban landscape and the people inhabiting it will always be there and is unavoidable.

[ariesjow]

I have a few thoughts on this...

1. Do you truly mean "downtown" or midtown and other urban core neighborhoods? Do you mean a house or a condo/townhome? There are very few actual houses in downtown Nashville. Even if you consider everything within the 265 loop to be downtown, that would only include a handful of neighborhoods with homes like Germantown, Salemtown, Buena Vista and Hope Gardens. Everything in those neighborhoods are either massive fixer-uppers in pockets still a half a decade or more away from thorough gentrification (Buena Vista) or higher-end (Germantown). A condo or townhome might be more affordable for two people looking for a starter home. They are buildings brand-new 2br condos in the North Capital area for around $200k. There may be a few future projects in the Gulch with condos priced around that range but you will sacrifice space.

With all that said, it sounds like you may be mostly considering other urban neighborhoods near but outside of downtown like Hillsboro Village, East Nashville, 12South, West End Park, Sylvan Park, etc. There are more houses in these areas. There are plenty of "up and coming" pockets in East Nashville (mostly north of Gallatin Rd. like Cleveland Park) that might be ideal for a starter home to be fixed up. One area you might want to consider is the Edgehill area because of it's very close proximity to other the Gulch, Music Row, 12South, etc as well as easy access to I-65 for your bf. That area is becoming increasingly popular with buyers hoping to turn a profit. My aunt has lived there for years and people knock on her door weekly asking if she's considering selling. Again, things like space, affordability and the neighborhood progress is still an issue with regards to buying within the core.

2. I have the similar sentiments to others. Are you sure you and your bf want to buy together and especially right now??? That's a massive step. The great Suze Orman would probably yell at you for considering it without marriage or, at the very least, a very, very strong commitment to each other. Heavens forbid you both pour a great deal of money into purchasing and fixing up a home only to find the relationship cannot work. You'll both be stuck dealing with each other until you can get the house sold (which could be a while in the current market) and one of you might have to pay rent elsewhere while also paying for the mortgage.

I beg you and your bf to consider the following option through. I'm not sure where you and your bf currently live in the metro or if you live together. However, l would consider renting together in one of the urban neighborhoods you are thinking about purchasing in for six months or a year. He gets to see if he likes a more urban neighborhood and you both get more time to consider marriage, save up more for a home down payment and explore the exact urban area you'd want to purchase in (or decide living in a suburb is preferrential). Not a bad idea, huh?

You might also find that one of the neighborhoods that are more demi-urban/suburban are a better option than living very close to the core or living in the 'burbs. I'm talking about areas like Berry Hill, Green Hills, Inglewood, Woodbine, etc. Our area (the White Bridge neighborhood) is sort of like this. It's very close to the best of both worlds with sidewalks but we still have very short drives to many of our favorite amenities.

As 20-somethings with no family plans, my partner and I cringe at the the thought of living further out and would probably prefer to move further into the core. But we like where we are now as well because most everything is still very close. I don't know much about you both like age, interests and plans to start a family but it sounds like most of your preferred entertainment options may be within the core.

3. I agree with you that your resale profit could be better in an "up and coming" urban neighborhood vs. a suburb becoming saturated. Again, you really never know though. Why not just move to the area where you both will be the happiest together instead of mainly eyeing the profits though?

[#Littledog]

Well said, ariesjow; I would vote to rent an apartment or a flat together first. If you decide to rent, I vote to stay in an urban area....I lived on the trendy east side of Milwaukee when I was in my 20's and was able to walk to the hospital where I worked. It was so much fun-you only have one chance to be a 20 something just starting out in your profession, living on your own, and focusing on yourself. In fact, if I were you, I'd get my own place. I am very happily married and I absolutely adore my children, but I don't know if I would have been as good as a wife or mother if I did not have this "me" time in my 20's. I got to go out with my friends, travel, focus on my career and just have fun! All while dating my boyfriend (now my husband) who understood I wasn't quite ready for all the commitments marriage brings. Once you get old like me, so many decisions revolve around your husband and your children. I would love to live downtown in a hip, trendy area but we can't afford a house in the nicer areas and then where do we send the kids to school, etc? If you feel ready for marriage and houses and all that kind of "grown up" stuff, go for it!!! I realize I might have taken a little longer to mature (I didn't marry until I was 30) and I do know many people your age that are ready for bigger commitments (and owning a home is a commitment!). I just want to let you know that it's ok not to rush into things and just enjoy being young and single!!!