Is it better to spend money in a pricey neighborhood or save money and buy in a more affordable neighborhood?

Asked by Amber, 75056 Fri Mar 20, 2009

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5
Dan Chase, Home Buyer, Texas City, TX
Sun Oct 25, 2009
Let us make a few assumptions.
each location has comparable crime rates
each location has comparable school systems
each location has comparable property tax RATES
each location has a socio-economic factors you like
the neighbors in both areas are the kind you can live with.
each has a house you would be content to live in

Are you buying with cash? If so think about how you could lose some when prices drop more.
Are you buying with credit? Think how you pay 3 times the house price when you include interest.

When you buy in a pricey area you are banking on it staying that way. Neighborhoods change, sometimes for the better, other times for the worse.

When you buy in a cheaper place you are effectively placing hundreds of thousands of $$$$ ( those nice green things we all like) in your pocket instead of someone elses. You should be saving lots of money on property taxes over the years to come.

No matter what you can afford to do, in the end you spend more money trying to show off how well off you are and it only puts you further behind financially.
0 votes
Dallas Texas, Agent, Dallas, TN
Thu Aug 6, 2009
We interview our buyers assist them determine short and long term goals. Only you can answer that question.

National Featured Realtor and Consultant, Mortgage Loan Officer, Credit Repair Lecturer
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0 votes
Mike Gonzalez, Agent, The Colony, TX
Fri Mar 20, 2009
Spend what you can comfortably afford not necessarily what you can qualify for. Generally speaking, home values in the 75056 area are stable so I wouldn't worry much about decreasing values. I personally thought it was a great time to step up to the next level of home and just moved into what you might call a "pricey neighborhood". Best of luck.

Mike Gonzalez, REALTOR®
Listing Specialist / Buyer Representative
The Rivera Team at Keller Williams Dallas Northwest
(214) 783-4240 | MikeTX@kw.com
0 votes
Kathleen Sei…, Agent, Gainesville, FL
Fri Mar 20, 2009
There are too many unknowns to answer this question well... the answer will be different for each person who asks the question.

I'd suggest that you sit down and write out the 3 or 4 most important things about a new home for yourself. Then have your spouse do the same. Then compare notes and talk about how to combine the lists so everyone is happy.

EX:
If investing in real estate is big on your list then buying an expensive home at a discount is a great way to go (there are various opportunities out there for this - don't overlook builders with spec homes).

If being in a mid-range home is fine with you and having money to travel with is a priority then I'd say buying in an affordable neighborhood is the way for you to go.
0 votes
Bruce Lynn, Agent, Coppell, TX
Fri Mar 20, 2009
Buy Affordable....there is now nearly a 5 year supply of 500,000 homes on the market in the DFW area.
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