How Do You Decide WHERE to Buy a House?

[HappyDude20]

hello community,

For about the past year, more than a year actually I felt like I’ve been in a rut jumping from apartment to apartment. I’ve tallied how much on rent and utilities I’ve spent in the past couple of years and for a one bedroom apartment and for the past 3 years it’s just over $38,000.

Considering I’m not tied down and dont have kids, ive been entertaining links that friends and family have been Sending if available houses in their neck of the woods.

My folks would love if I moved back to San Francisco but the lowest decent priced 1 bedroom homes (not apartments) are north of $550,000.

My college roommate who I’m still really close with (though he has a wife and kid now) live in Washington DC and I saw a great 2 bedroom house about 30 miles away from the city center for $330,000.

My high school best friend lives in NYC and has sent multiple links for studio apartments to own for $400,000+. However admittedly I’ve visited her many times and I don’t think I can live in the city. It’s so hectic and I recall every morning waking up to honking and the bustle.

For the past 3 years I’ve lived in apartments in Las Vegas, NV and have noticed many homes for sale between $300,000-$500,000 that are decent and about 1,500 sq ft.

I suppose the reason I ask how you go about choosing is because I feel each location here within the US has unique benefits. The benefits of living in Las Vegas is great and I can get great food any hours of the day, but the homes north of Washington DC are so secluded and quiet and filled with trees.

Naturally this is where perhaps profession plays a huge factor in deciding all this and as it turns out I travel for work. I’ll visit all these cities and more every few months.

 

[velocityg4]

Everyone has different priorities. I'd say you need to look at your priorities. Then look at how different areas meet them.

Activities: Think about what you like to do outside the home. Going to restaurants, the beach, hiking, skiing, &c. Then look at what is available and how far away it is.

Job: Is there good employment opportunities? Do you care about a specific field? How about wage. Remember when factoring wage for your field to also factor cost of living and commute. You might make more in a profession in LA than Atlanta. Is it so much more to make up for the massively higher real estate costs and commute times?

Family/Friends: How important is it for you to be near them?

Politics: Do the politics of that state match well with your beliefs? Does it matter much to you?

Cost of Living: How much is the real estate? Will it force you to have a long commute to get a place you can afford?

Space: Do you want a big house or small house? Do you want a lot of land?

Weather: How important is the weather to you? Do you want to deal with sub-zero temperatures, humidity, dry weather, heat or temperate weather?

Pests: Different areas are wrought with different pests. You could be constantly battling ants, wasps/hornets, mosquitoes, cockroaches, rats, &c.

 

[HappyDude20]

I can’t put a down payment on a house anytime soon but friends and family keep sharing of awesome unique houses in their areas and I’m thinking it would be cool to have one loooooooooooong term.

Space is cool. Pets are cool too. I hate traffic. But long term seems to be the ultimate thing.
[doublepost=1540182238][/doublepost]

I can’t put a down payment on a house anytime soon but friends and family keep sharing of awesome unique houses in their areas and I’m thinking it would be cool to have one loooooooooooong term.

Space is cool. Pets are cool too. I hate traffic. But long term seems to be the ultimate thing.

You know what it is also? I’ve been spending too much time on the Zillow InstaGram page.

 

[jpn]

there are two paths:

Path 1: home ownership is considered primarily as a financial investment. Live there for as long as the market is right, and sell it if the market is favorable for a profit.
A home is a financial instrument.

Path 2: is totally different from Path 1. Path 2 is to forget about primarily thinking about a home as a financial investment. A home, a place to ground yourself. One for long term.
People who have a need for roots need to choose this one.

Both are legitimate paths, but both have completely different guidelines and plans for purchase.

for the last 100 years Path 2 has never resulted in hardship or mistakes.
whereas Path 1 is risky.

i think you have no need for roots.
and as much as you think you are losing money by renting, that may not be case.
but, a house does tie you down. it limits job change opportunities and lifestyle changes.
i think Path 2 is not for you. a person with so many different options for where to live ipso facto means s/he will not benefit from rooting in any one place and will feel tied down eventually.

 

[A.Goldberg]

I’ve lived in Boston for about 11 years now- technically I’m in the MetroWest area but it’s basically Boston considering it has local MBTA train/trolley service. We’re about 12 minutes to Fenway and 20 to Copley via Green Line- about 3 miles from the Prudential Building. Living slightly on the outskirts, there isn’t quite as much traffic making my commute easier. It’s also a bit quieter.

My girlfriend and I rented an apartment for several years. She’s graduated Med school now and is in her residency- she was matched in Boston. So considering I have a career here and she’s in residency and Boston is a great place for healthcare (I also work in healthcare)... it’s a good spot to be for us. It’s also a fun city with lots to do.

We recently purchased an condo in a brownstone here. It’s pretty expensive here but it’s just not worth paying rent and having that money go nowhere in terms of future investment.

 

[Scepticalscribe]

Everyone has different priorities. I'd say you need to look at your priorities. Then look at how different areas meet them.

Activities: Think about what you like to do outside the home. Going to restaurants, the beach, hiking, skiing, &c. Then look at what is available and how far away it is.

Job: Is there good employment opportunities? Do you care about a specific field? How about wage. Remember when factoring wage for your field to also factor cost of living and commute. You might make more in a profession in LA than Atlanta. Is it so much more to make up for the massively higher real estate costs and commute times?

Family/Friends: How important is it for you to be near them?

Politics: Do the politics of that state match well with your beliefs? Does it matter much to you?

Cost of Living: How much is the real estate? Will it force you to have a long commute to get a place you can afford?

Space: Do you want a big house or small house? Do you want a lot of land?

Weather: How important is the weather to you? Do you want to deal with sub-zero temperatures, humidity, dry weather, heat or temperate weather?

Pests: Different areas are wrought with different pests. You could be constantly battling ants, wasps/hornets, mosquitoes, cockroaches, rats, &c.

Excellent post with much good advice which the OP would do well to ponder.

there are two paths:

Path 1: home ownership is considered primarily as a financial investment. Live there for as long as the market is right, and sell it if the market is favorable for a profit.
A home is a financial instrument.

Path 2: is totally different from Path 1. Path 2 is to forget about primarily thinking about a home as a financial investment. A home, a place to ground yourself. One for long term.
People who have a need for roots need to choose this one.

Both are legitimate paths, but both have completely different guidelines and plans for purchase.

for the last 100 years Path 2 has never resulted in hardship or mistakes.
whereas Path 1 is risky.

i think you have no need for roots.
and as much as you think you are losing money by renting, that may not be case.
because, a house does tie you down. it limits job change opportunities and lifestyle changes.
i think Path 2 is not for you. a person with so many different options for where to live ipso facto means s/he will not benefit from rooting in any one place and will feel tied down eventually.

Also a very good post, well worth thinking about.

 

[tromboneaholic]

hello community,

For about the past year, more than a year actually I felt like I’ve been in a rut jumping from apartment to apartment. I’ve tallied how much on rent and utilities I’ve spent in the past couple of years and for a one bedroom apartment and for the past 3 years it’s just over $38,000.

Considering I’m not tied down and dont have kids, ive been entertaining links that friends and family have been Sending if available houses in their neck of the woods.

My folks would love if I moved back to San Francisco but the lowest decent priced 1 bedroom homes (not apartments) are north of $550,000.

My college roommate who I’m still really close with (though he has a wife and kid now) live in Washington DC and I saw a great 2 bedroom house about 30 miles away from the city center for $330,000.

My high school best friend lives in NYC and has sent multiple links for studio apartments to own for $400,000+. However admittedly I’ve visited her many times and I don’t think I can live in the city. It’s so hectic and I recall every morning waking up to honking and the bustle.

For the past 3 years I’ve lived in apartments in Las Vegas, NV and have noticed many homes for sale between $300,000-$500,000 that are decent and about 1,500 sq ft.

I suppose the reason I ask how you go about choosing is because I feel each location here within the US has unique benefits. The benefits of living in Las Vegas is great and I can get great food any hours of the day, but the homes north of Washington DC are so secluded and quiet and filled with trees.

Naturally this is where perhaps profession plays a huge factor in deciding all this and as it turns out I travel for work. I’ll visit all these cities and more every few months.

Apple Store within 30 minute drive.

 

[Gutwrench]

School district
Reasonable proximity to work
Quiet neighborhood
Convenience to freeway and shopping
Parks and recreation
Potentional neighbors

Ps - sorry I just realized you’re struggling over the city and part of the U.S.

 

[Scepticalscribe]

@velocityg4 gave the best response thus far and it that the OP needs to work out in his own head what matters to him most and how he can find a way to making that happen.

In an ideal world, what would a house he likes have? What features does he value, need and want in, or near, a house?

 

[Apple fanboy]

When my job moved me from one end of the country to the other, we researched stuff like the following before deciding on an area;

Local schools (my daughter was coming up one).
Commute to work.
Things my wife (who at the time didn't drive), could get to whilst I was at work all day.
Local crime rate.
Affordability.

Then you narrow it down to the type of property you want and the like.
I only wanted a detached property. Garage and off road parking were also high on my list.
A garden for the little one to play in.
3 bedrooms.
Separate lounge and dinning room.

 

[Tech198]

Everyone has different priorities.

Some even decide based on their internet connection requirements.

 

[jbarley]

there are two paths:

Path 1: home ownership is considered primarily as a financial investment. Live there for as long as the market is right, and sell it if the market is favorable for a profit.
A home is a financial instrument.

Path 2: is totally different from Path 1. Path 2 is to forget about primarily thinking about a home as a financial investment. A home, a place to ground yourself. One for long term.
People who have a need for roots need to choose this one.

Both are legitimate paths, but both have completely different guidelines and plans for purchase.

for the last 100 years Path 2 has never resulted in hardship or mistakes.
whereas Path 1 is risky.

i think you have no need for roots.
and as much as you think you are losing money by renting, that may not be case.
but, a house does tie you down. it limits job change opportunities and lifestyle changes.
i think Path 2 is not for you. a person with so many different options for where to live ipso facto means s/he will not benefit from rooting in any one place and will feel tied down eventually.

It appears I'd qualify for your "Path 2"...
purchased our modest home in 1965 for $8900, note the 2 zeros.
still living in it 53 years later with no plans to move
today according to my tax appraisal it's valued at approx $200,000 which my kids can fight over after I'm gone, which won't be too much longer.

 

[daimos]

There’s also mortgage interest that is deductible come tax time for US. Some analysts think this is the reason people keep buying houses out of their reach. On the other hand, matching stock options is a good free money if you have any extra.

 

[Lioness~]

The reason where I've located myself has varied during life.

I bought my 1st condo at the age of 15
Houses have never been of interest, at least not his far. I'm a city girl.

The location at the time where chosen from how close it was to where my soccer/football team was located.
After that, I've bought condos where I felt I would stay some time. Rented when that was unclear or short time.

The reason of location have varied from where my partner worked or was located, where my studies/work/growing path could benefit from it, etc.
Will see what next location(s) will be. It still depends on pretty much the same things.
It's more where my heart is then investments for me. But things usually turns out well when heart's comes 1st

 

[JamesMike]

Location, location.

 

[Mac'nCheese]

You said you travel for work. Think about the best location for you to be in if you leave this job and need to find a new one.

 

[RootBeerMan]

You might want to give some serious thought to flyover country. I live in the Indianapolis area and it's a great area to be in. Lot's of jobs, lots of affordable housing. A great airport, since you travel for work. Low taxes. And the towns around Indy (mostly to the north where I live) are consistently rated as some of the best places to live in the US. No matter where you go,though I suggest diving into Realtor.com for info. They have comprehensive listings of everything from property values to schools and crime. Virtually everything you'd like to know about any area will be at your fingertips.

 

[Huntn]

hello community,

For about the past year, more than a year actually I felt like I’ve been in a rut jumping from apartment to apartment. I’ve tallied how much on rent and utilities I’ve spent in the past couple of years and for a one bedroom apartment and for the past 3 years it’s just over $38,000.

Considering I’m not tied down and dont have kids, ive been entertaining links that friends and family have been Sending if available houses in their neck of the woods.

My folks would love if I moved back to San Francisco but the lowest decent priced 1 bedroom homes (not apartments) are north of $550,000.

My college roommate who I’m still really close with (though he has a wife and kid now) live in Washington DC and I saw a great 2 bedroom house about 30 miles away from the city center for $330,000.

My high school best friend lives in NYC and has sent multiple links for studio apartments to own for $400,000+. However admittedly I’ve visited her many times and I don’t think I can live in the city. It’s so hectic and I recall every morning waking up to honking and the bustle.

For the past 3 years I’ve lived in apartments in Las Vegas, NV and have noticed many homes for sale between $300,000-$500,000 that are decent and about 1,500 sq ft.

I suppose the reason I ask how you go about choosing is because I feel each location here within the US has unique benefits. The benefits of living in Las Vegas is great and I can get great food any hours of the day, but the homes north of Washington DC are so secluded and quiet and filled with trees.

Naturally this is where perhaps profession plays a huge factor in deciding all this and as it turns out I travel for work. I’ll visit all these cities and more every few months.

Your profession may dictate this somewhat, but once you have decided on a city or geographic area, the realtors will tell you location, location, location. No power plant in the back yard. My son wanted to buy one of those. We talked him out of it. Stay out of flood plains. Close to downtown, plan on spending more. How far are you willing to commute? How big a city do you want to live in? I loved Minneapolis (about 2 Million when I lived there including the suburbs), but I detest Houston (6 million) because, just too many people for my tastes. I consider 1-2M the ideal size for cities, so they will have cultural events like a ball team, or a symphony. I love the East Coast where I grew up, but DC and Northern Virginia have become paradise lost because of development. New York and Boston, gridlock.

If you choose a little ways out, for the peace and quite, don't be surprised if its gets crowded quickly again because of development. Most places close to cities are not stagnate, they are in a constant state of development, so everything changes, usually for the worst when it comes to congestion. There is no way, I'd ever consider living in Vegas, personal preference. Way too hot, and the housing market tanked when the housing bubble popped. I've always thought there was something unnatural about volunteering to live in the desert.

 

[TonyC28]

there are two paths:

Path 1: home ownership is considered primarily as a financial investment. Live there for as long as the market is right, and sell it if the market is favorable for a profit.
A home is a financial instrument.

Path 2: is totally different from Path 1. Path 2 is to forget about primarily thinking about a home as a financial investment. A home, a place to ground yourself. One for long term.
People who have a need for roots need to choose this one.

Both are legitimate paths, but both have completely different guidelines and plans for purchase.

for the last 100 years Path 2 has never resulted in hardship or mistakes.
whereas Path 1 is risky.

i think you have no need for roots.
and as much as you think you are losing money by renting, that may not be case.
but, a house does tie you down. it limits job change opportunities and lifestyle changes.
i think Path 2 is not for you. a person with so many different options for where to live ipso facto means s/he will not benefit from rooting in any one place and will feel tied down eventually.

As far as Path 2 goes, people are starting to look at a house as an investment less and less. And I say that's a good thing. My advice would be to think of it as a purchase with no expectation of any increase in value. And one that will cost you money to possess due to taxes and interest. I bought my first home a couple years ago after renting before that. I'm feeling some regret these days.

 

[Apple fanboy]

As far as Path 2 goes, people are starting to look at a house as an investment less and less. And I say that's a good thing. My advice would be to think of it as a purchase with no expectation of any increase in value. And one that will cost you money to possess due to taxes and interest. I bought my first home a couple years ago after renting before that. I'm feeling some regret these days.

I think that kind of depends on where you live. We doubled our money on our first property almost in three years. You just have to be lucky to buy and sell at the right time.

 

[TonyC28]

I think that kind of depends on where you live. We doubled our money on our first property almost in three years. You just have to be lucky to buy and sell at the right time.

I know it's not really the point of this thread so I don't mean to get too far out in the weeds on this one, but just curious, when you say you doubled your money do you account for money you paid in taxes and interest? I live in Illinois and since it definitely does depend on where you live I may just be a touch cynical.

 

[Apple fanboy]

I know it's not really the point of this thread so I don't mean to get too far out in the weeds on this one, but just curious, when you say you doubled your money do you account for money you paid in taxes and interest? I live in Illinois and since it definitely does depend on where you live I may just be a touch cynical.

Yes pretty much. This was in London and prices were going up daily. I’m not sure what you mean by taxes and interest. The interest on the mortgage? Well the mortgage was less than I was paying in rent, so to me that was money saved either way.

 

[jpn]

As far as Path 2 goes, people are starting to look at a house as an investment less and less. And I say that's a good thing. My advice would be to think of it as a purchase with no expectation of any increase in value. And one that will cost you money to possess due to taxes and interest. I bought my first home a couple years ago after renting before that. I'm feeling some regret these days.

hi
we are thinking alike, it seems.
the "buying a house as an investment" thing really needs to be seen for what it is: as an investment thing.
whereas buying a home because you want a place that is yours for as long as possible, mainly to provide a foundation for yourself or a family, then what you look for is different.
and, as well, renting (in most markets) is an approach that provides total flexibility (at somewhat of a cost) but it preserves options. in renting, you need to couple it with an aggressive approach to stashing away savings in place of the equity you would have been building if you purchased a home.
in uncertain times, options that provide long term flexibility can be the best way.

 

[shinji]

Yes pretty much. This was in London and prices were going up daily. I’m not sure what you mean by taxes and interest. The interest on the mortgage? Well the mortgage was less than I was paying in rent, so to me that was money saved either way.

I'm sure you have property taxes in the UK? The amount you pay is based on your home's value, and it goes to fund the local community, i.e. schools, police, etc. It can be quite high in some parts of the US.

 

[Apple fanboy]

I'm sure you have property taxes in the UK? The amount you pay is based on your home's value, and it goes to fund the local community, i.e. schools, police, etc. It can be quite high in some parts of the US.

Council tax we call that. You pay it regardless of whether you own or rent, so that’s not a consideration really. You have to pay regardless.