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BF and I were discussing a first home and which option to choose. What are your thoughts about these two options?
Option A: a one bedroom, one bathroom condo at the price of $150,000. The advantage is that we can afford the condo on just one of our incomes. The disadvantage is that we would have to move a couple of years after having a child (if we decide to have children).
Option B: a two bedroom, two bathroom condo at about $210,000. This one would be a stretch on just one income. The advantage would be we could potentially stay in this home a long time (possibly forever).
We are both working. It's just that in this economy, you never know. I know that it's best to be conservative. But should you buy a home that you can't really "grow" in? Any help would be appreciated. TIA
P.S. We would not buy the home until after we are married.
A couple of years ago, I would have said Option B... Buy something you love that you can stay in for a while, even after having kids. But in this economy, if it would be tight by any means to afford mortgage and basic necessities on one income, I say be conservative and go with Option A.
I have to say, I'm always amazed when I watch House Hunters or Property Virgins and I see people buying 900 sq ft condos for $200,000+ . Not that I think anything is wrong with buying a condo- it's just the sticker shock from cost of living differences. For $200,000 in eastern NC you can buy a nice 2000+ sq ft single family home.
A couple of years ago, I would have said Option B... Buy something you love that you can stay in for a while, even after having kids. But in this economy, if it would be tight by any means to afford mortgage and basic necessities on one income, I say be conservative and go with Option A.
I have to say, I'm always amazed when I watch House Hunters or Property Virgins and I see people buying 900 sq ft condos for $200,000+ . Not that I think anything is wrong with buying a condo- it's just the sticker shock from cost of living differences. For $200,000 in eastern NC you can buy a nice 2000+ sq ft single family home.
Thanks for the help. I am in a high cost area where $200,000 is considered cheap. I agree that I'm going to try and pick something that can be bought one income or just not buy until I'm making more money.
my opinion would be for option b. i always look at a home with "growth potential" and let's face it, who's going to be your future buyers? not that you're looking at staying for just a couple of years. i don't want to limit myself at a 1/1 --especially for that kind of money--i don't care where i'm living, i want to have value for my buck.
Im awwere the situation might be difrent for me. since im not in US.
but these times i wud buy the smal flat first now.
this is prob cheap coz of the time. and u can live there even if one of u loose the job. or geet reduced work houers.
and u stil own a home. this is good.
then in 2-3-4 years and u plane to have kids. u have payed down good portion of ur loans.
the finance situation in the state (world) is better. ur finance is better. ur jobs more stabile.
then u have a flat to sel. might even sell to higer price than u bought for. tho ofc a 2 bedroomer might cost more too. but anywhy u got a home to sell and that looks good for the bank when u want to loan for buying a new home. (if u handeled ur loan good).
if the finance time in the states and world was better i agree with thechappells. but its not. it realy is hard times now. make sure u dont end up in bad situation if one of u shud geet problems with work.
I would probably save up and buy at least a 2 bedroom so that you are not suffocated when you have kids. Is it possible you can find a 2 bedroom / 1.5 bath to compromise somewhere in the middle? Its definitely a good idea of going thru all expenses and make sure you can afford it on one salary. Also if you can make sure you have 6 months of payments saved up in reserve, then I would get at least a 2 bedroom because you WILL NOT be able to sell a house in 2-3 years. If you cant afford the 2 bedroom, wait and rent until you do save up enough.
A couple of years ago, I would have said Option B... Buy something you love that you can stay in for a while, even after having kids. But in this economy, if it would be tight by any means to afford mortgage and basic necessities on one income, I say be conservative and go with Option A.
I have to say, I'm always amazed when I watch House Hunters or Property Virgins and I see people buying 900 sq ft condos for $200,000+ . Not that I think anything is wrong with buying a condo- it's just the sticker shock from cost of living differences. For $200,000 in eastern NC you can buy a nice 2000+ sq ft single family home.
Tell me about it...
In my area (working class NY neighborhood not in Manhattan) an 800 square foot 2 bedroom condo is well over $400k. You might find one in the high $300s if you're lucky but it will be next to a busy highway and you'll breathe in gas fumes for the rest of your life and deal with noisy trucks.
The $489k one is in a six unit building and have been on sale for over a year and a half. The price was originally $529k. Wasn't that nice of them to reduce the price? No one has moved in yet so I doubt any of the units have sold so far. I pass it every day on the way to work and while it was being built thought "Hmm, I wonder if they'll be affordable..." I guess I got my answer.
In my neighborhood there are plenty of renters wishing they could buy and a large number of condos that were nearing completion but now have had no workmen on site in many months. They're just sitting there, nearly finished and abandoned.
To the OP: I would go with Option A. Less stress because you won't be fearful of job loss (well, you will but you'll be able to pay if it happens), and you don't sound like you are definite on having kids or at least not having them right away.
Go for option A. Right now you don't have kids, you're not even married yet. Save the money and in a few years, once the wedding has taken place and you are ready to move on, upgrade to a bigger place. The market will rebound sooner or later so go with the first option and live comfortably!!!
I would say go with option B. Only because...you should consider the ability to be able to re-sale your home later. Not sure about your area, but around here, a 1BD, 1BA would probably never sell...especially for that amount. You're much better off with option B, that way in the case that you do have a child, you already have room, and don't have to sell your place and find another in a rush.
Location: Nothing could be finer... I'm in S. Carolina!!
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how long has b been on the market? see if you can get b for a lot cheaper... like $280 or $290. maybe that would make it more managable. i agree that the single fam would probably resell better than a condo, but i'm from a rural area where that is the case. may not be where you are. good luck!
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. Not that I think anything is wrong with buying a condo- it's just the sticker shock from cost of living differences. For $200,000 in eastern NC you can buy a nice 2000+ sq ft single family home.
