Buying a house pre-kid (Lowell, Cambridge: to rent, condo, mortgage)

[3cents]

First, a summary of our current situation. My wife and I are new to MA, relocated here from abroad for my job, and we're looking for start a family here. My wife's visa type doesn't allow her to work, so I'll be the sole earner for the foreseeable next few years, with a current gross of about $120K per year. We don't have kids yet, but would like one or two soon.

We are comfortable with a 500K house, probably OK with 600K, and doesn't really want to stretch to 650K if possible. We can put at least 20% down. What we prefer in a SF house: 3 bedrooms, 1500 sq feet and more, on quiet street, not older than 1950s.

I work in north Cambridge, and we've looked at nearby towns with very good school districts, within a reasonable, say 15-20 miles radius. But alas, for our price range, it is very difficult to find an "OK" house with no major problems (e.g. wetland in lot, mold in attic, water seepage in basement, high radon readings, termites, etc.). I've crossed out Newton because I heard the schools are very cramped. I've sort-of crossed out Arlington because there's minimal space between you and your neighbors.

I have initially entertained towns like Andover, Needham, Westwood, Westford, but have decided to cross them out due to commute time, for my own sanity.

Are we too picky? Should we forget about school districts altogether for the time being, and move again in a few years' time when we have KG ready kids? But interest rates are at an all-time low now. I don't think our savings (a few yrs down the road) would be enough to offset the hike in interest rates and potential climb in housing prices.

All opinions are valuable. Thank you.

[Cato the Elder]

I would buy more long term for a number of reasons. I work in Cambridge and we were looking for a similar house several years ago (process started even earlier but we didn't get serious until more recently). Our initial list included Arlington, Belmont, Lexington, Winchester, Reading, and probably a couple more. Later, we expanded this list west to include Lincoln, Sudbury, Bedford, Concord, Carlisle, and Acton. We decided in the end that Acton would be the farthest we would go, and this was only because of the commuter rail. In the end, we dropped every town but Reading, Sudbury, Concord, and Acton for various reasons. We would have been happy enough in any of these towns and it basically came down to what was on the market. For our specific finalists we also considered the vibe of the particular neighborhood, where we thought the town was headed, and whether we thought it was a good value. Good luck.

[donewithpretty]

I was in your situation in 2008. My husband and I looked in towns like Arlington and Belmont but couldn't find a house that we liked or that didn't have major problems. Ultimately, we bought a nicely renovated single-family in Medford Hillside, and the commute to Cambridge is very easy and short. Knowing more about the area now, we also should have looked at West Medford and Melrose as family-oriented alternatives with quick commutes.

Before you decide, ask yourself if your family could be happy 20 years from now in any of the houses you've looked at so far. Will you still like having a 1500 square foot house in 10 years? Or a house that's a bit farther out from the city? Will you definitely continue to work in Cambridge, or might you relocate again?

If you haven't found a "forever" house, you should take into account that even if your wife conceives as soon as you move, it will be 7 years before you have a school-age child. Add a year trying to get pregnant, and we're talking 8 years. That's a long time to pay for a school district you're not using or to suffer a long commute unnecessarily. You also don't know what kind of child you'll have. Your kid could be a super-genius who gets whisked into private school on scholarship, or have a special aptitude or need that only certain public schools cater to. It's impossible to predict.

The interest rates are only a deal if they allow you to buy a house you really want. If that house doesn't exist in your price range, I think you'd be better off renting or buying a starter house in a neighborhood you like for right now.

[gf2020]

On average, people change houses every 7 years and they change jobs even more frequently. I would certainly not buy your first house expecting it to be your forever house or with the expectation that your office will be in Cambridge forever either. Additionally, I wouldn't put too much emphasis on the community's school system now for that first house; you're not expecting a child right now, that process does not happen over night and your child won't go to the public schools for 5 or 6 years anyways.

Buy a house or a condo that makes sense for you now and in the near future, not some long term vision, you're going to learn more about the area and different things may become more important to you over the next few years.

With a budget of $500-600K and a commute to North Cambridge, I would look in Melrose, Wakefield and Stoneham and even Swampscott and Marblehead if you like proximity to the ocean.

[brightdoglover]

Arlington is extremely well located- not only for North Cambridge, but for future changes. It's got the bus and Alewife into town, Route 2 for an easy drive out of Arlington (and against traffic to other places). I lived in Arlington and worked normal business hours in Lowell, and it was a great drive and location.

[unit731]

Melrose, Wakefield, Stoneham.
Near all types of public transportation and highways.
Mix of older and newer homes.

Melrose is unique as there are no highways that cut through town.
Melrose has good public schools.
Melrose also has a Catholic private school. One does not need be Catholic to attend.
Melrose has good parks for play areas.
Melrose has a good YMCA for activities.

I would not eliminate older homes.
Many of the older homes were constructed much better then todays homes. Yes, windows would have been upgraded as well as the heating system. A lot more character with older homes.

[jayrandom]

Originally Posted by 3cents

First, a summary of our current situation. My wife and I are new to MA, relocated here from abroad for my job, and we're looking for start a family here. My wife's visa type doesn't allow her to work, so I'll be the sole earner for the foreseeable next few years, with a current gross of about $120K per year. We don't have kids yet, but would like one or two soon.

We are comfortable with a 500K house, probably OK with 600K, and doesn't really want to stretch to 650K if possible. We can put at least 20% down. What we prefer in a SF house: 3 bedrooms, 1500 sq feet and more, on quiet street, not older than 1950s.

How long term is this new job? The transaction costs associated with buying a new house can be significant, so if you're not going to be in MA for more than 5 years it might not be worth it to buy. Something to consider, although purchasing vs. renting is not strictly a cost analysis problem.

Originally Posted by 3cents

I work in north Cambridge, and we've looked at nearby towns with very good school districts, within a reasonable, say 15-20 miles radius. But alas, for our price range, it is very difficult to find an "OK" house with no major problems (e.g. wetland in lot, mold in attic, water seepage in basement, high radon readings, termites, etc.). I've crossed out Newton because I heard the schools are very cramped. I've sort-of crossed out Arlington because there's minimal space between you and your neighbors.

I have initially entertained towns like Andover, Needham, Westwood, Westford, but have decided to cross them out due to commute time, for my own sanity.

Needham and Westwood are great, but you're right to be hesitant as they're not great for commuting to North Cambridge. I'm guessing Belmont, Lexington, and Winchester are out of your price range? What about Bedford? Wakefield/Melrose/Reading are options, as well.

Originally Posted by 3cents

Are we too picky? Should we forget about school districts altogether for the time being, and move again in a few years' time when we have KG ready kids? But interest rates are at an all-time low now. I don't think our savings (a few yrs down the road) would be enough to offset the hike in interest rates and potential climb in housing prices.

All opinions are valuable. Thank you.

Don't count on a climb in housing prices or an increase in interest rates. At least not as a motivator to buy now. If you aren't ready to buy, don't buy. It's relatively easy to rent a place for a year and see what you like. Perhaps you'll find Arlington isn't so crowded after all, or that high density means that your neighbors are closer but so are all the stores. Alternately you could find that even somewhere like Needham is too dense and you're willing to commute a bit longer for more space.

If you want to play guess the market you can do that in other ways. You know what kind of people you and your wife are--will it be easy to move again if you want to upgrade? Are you willing to eat those transaction costs to do it?

[Boston_Burbs]

Don't buy into the common wisdom that you should buy a house with a 30 year mortgage. Banks love 30 mortgages, lots of money to be made.

See what you qualify for with a 15 and see if you can make it work. The savings even if you only stay there for 5-7 years will be significant compared to a 30 year mortgage and will protect you against the house not appreciating much.

That being said, North Cambride/Inman is a tough place to work commuting wise. You either have to drive through Cambridge or use the combination of the Commuter Rail, T, or Bus.

[DawnMTL]

Originally Posted by donewithpretty

Before you decide, ask yourself if your family could be happy 20 years from now in any of the houses you've looked at so far. Will you still like having a 1500 square foot house in 10 years? Or a house that's a bit farther out from the city? Will you definitely continue to work in Cambridge, or might you relocate again?

If you haven't found a "forever" house, you should take into account that even if your wife conceives as soon as you move, it will be 7 years before you have a school-age child. Add a year trying to get pregnant, and we're talking 8 years. That's a long time to pay for a school district you're not using or to suffer a long commute unnecessarily. You also don't know what kind of child you'll have. Your kid could be a super-genius who gets whisked into private school on scholarship, or have a special aptitude or need that only certain public schools cater to. It's impossible to predict.

The interest rates are only a deal if they allow you to buy a house you really want. If that house doesn't exist in your price range, I think you'd be better off renting or buying a starter house in a neighborhood you like for right now.

^ This. This. This.
That's exactly what I was going to say.

[Cato the Elder]

As some have suggested, Arlington might be worth a second look. What you describe applies more to East Arlington. The Robbins Farm neighborhood is great, but I think it's overpriced because it's white hot right now. If you look further west and north, you get more space and a better deal since it's not the fad right now. I've always wondered why and my theory is that people would rather be in Lexington or Winchester once they're out that far anyway.