Need some advice between selecting 1 home out of 2 (home owners insurance, mortgage)

[hinva]

Hi ,

We have been thinking which one to buy between two single family homes. The first home is on 1 acre land and another is on 10,000 sqft, the difference between the price is around 170k and both are similar interior wise. Price wise we like the second one, while home wise we like the former one. This is our first home and we are not sure what to do. We are married recently and we can afford both the homes. We have to keep a 1000$ more mortgage per month for first home and commute wise both are same, since both are at the same location. We are thinking whether to keep the 1000$ more for the first home and buy it or save it by buying the second one.

Appreciate any advice or pointers on how to select the best of the two long term wise. Appreciate your time.

Thanks,
MK

[oneasterisk]

Would you be able to afford the first house on one income? You mentioned being recently marriage. Not sure what your plans are on starting a family, but if you decide to stay home with your future baby for a while, would your husband's income be enough for the 1st house?

[Gottasay]

Other factors to consider:

On one acre home:
Do you like mowing lawns? Or did you factor in cost of having someone mow lawn?

On 10,000 square foot lot:
Do you like privacy? Do you mind noise from neighbors, trucks, etc?
Do you mind dogs or neighbor kids running through your yard, even riding their bike through your yard?

Are either one on a corner lot? Do either one have a front porch? (Affects resale value down the road)

[novadc]

If you can afford either one, go with the first one, where your heart is. If you're not in love with the second one, it won't be much consolation to be walking around your home in a few months saying, "boy, I just love the price of this house."

[hinva]

he's into consulting and yes his income would suffice, but would be tight; month-2-month. Should we consider our decision based on that?..let me know.

[kutra11]

are both the homes in the same school district? and how far is the bus stop/metro from each house?

[hinva]

Kutra: Yes both the homes are in the same school district and I am not sure where the bus stops are for the first one, but for the second one bus stops are not that far; Since we don't have any kids yet, so we didn't focus towards those details. Let us know..what you think. Appreciate your time.

NovaDc: Loved your reply. Yes agree with you, but little scared if I take a wrong decision by picking the first one; Since economy, jobs etc., are not that in great shape, any time it could or may affect me

GottaSay: Thanks for pointing out that; We didnt factor it in. But its not that of a high priority since I am ready to mow the lawn if needed and kids , privacy etc., as you mentioned are no hindrance.

I have been thinking about this for a while, drew excels and did some comparisons; But couldnt come up with a solid gut feel of what to take. Any approach that some one can suggest..Would love to hear any replies or pros and cons. Appreciate your time.

[Gottasay]

Hinva, check your mailbox as I just sent you a PM w/ more info from my perspective.

[ShannonMilligan]

One thing to remember about home ownership is all the costs associated with it. Yes, you will have a mortgage. You will have home owners insurance. You may have an HOA. You will have yard costs. You will have repair costs (plumber, electrician, etc.) These are things people may think about but don't really save for.
For example: we bought our home and could afford the mortgage. It was a 15 year old home. We knew there would be additional costs but didn't really take into account the age of the home. Within a year of moving in we had to replace the garage doors for $3K and replace the HVAC system which was about $9K. We had a plumber out several times for some small issues but at $85 per visit it added up. We had to buy a lawn mower $300 and we had a pest company for ants so that was $85 every 3 months. Cable $135 per month, water, electric.

Just some things to consider when it comes to cost. Looking back we wish we would have bought a newer home so things would have at least been under warrenty. We recently sold this home...one reason is b/c it still needed upgrades: new windows, a new roof...We are now building new construction

THink about costs and which home you love most. Location, location, location is also important. Are both homes desirable to the masses?

Good luck with whatever you do!

[Margery]

Since the first home (which you like more than the less expensive one) is on an acre, is it possible that the zoning and placement on the lot of the present house would allow you to subdivide and sell off half the acre?