Author Topic: Another post about which house to buy  (Read 4381 times)

Quark

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Another post about which house to buy
« on: December 05, 2014, 01:02:30 PM »
I'm 28, make 90K a year. My company is moving to a different suburb so I have to move. I want to buy my first house. I REALLY wanted to stay under $100k but the only houses in that price range are about 7 miles away, so I would drive. I found a nice one for only 85K.

However, I found an equally nice one only a mile from work for $137K.

Since I have done a lot of housing research, I know what I want in a house and obviously other considerations about the houses would be made, so my question is just in general would you pay THAT MUCH more to live so close? It feels like a lot to me although it's only about 100 bucks a more/month on a 15 year mortgage.

I should add that it's incredibly rare to find a house under 200K this close to work.

Rezdent

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Re: Another post about which house to buy
« Reply #1 on: December 05, 2014, 01:13:42 PM »
There's a post on this.  It will help you with the math.
http://www.mrmoneymustache.com/2011/10/06/the-true-cost-of-commuting/

slugline

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Re: Another post about which house to buy
« Reply #2 on: December 05, 2014, 01:59:53 PM »
How much do you know about the neighborhoods surrounding each of your choices? There can be differences in HOA fees, taxes, proximity to a good grocery store or library....

If equal, I think the closer-to-work option is a great choice.  You'd be able to bike home for lunch or just a break at-will.

Quark

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Re: Another post about which house to buy
« Reply #3 on: December 05, 2014, 02:18:06 PM »
They are all about equal.

I have a prius so costs per mile are lower.

But I checked out a rent vs buy calculator that gives you equivilent rent for the mortgage prices and have decided I can up my maxium to about 175K if need be.

ketchup

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Re: Another post about which house to buy
« Reply #4 on: December 05, 2014, 02:36:47 PM »
As someone that leaves the house at 7:35 to get to work by 8:30, I think the benefits of an extremely short commute are underrated, and the general awfulness of a commute like mine is typically understated.

I drive an efficient car too (45MPG city '99 Metro, overall cost of ~$0.15/mile), so it's not the gas that gets to me, it's the time.  I lose almost two hours per working day.

I'm hoping to move closer to work next year, and that will mean more expensive housing, but it will be 100% worth it.  It'll probably be a wash for me financially compared to driving in every day, but the time element cannot be overstated.  I hope to cut nearly an hour in the car down to 5-10 minutes on a bike, and it will be bliss.

I'd go for the 137K house a mile from work.

TerriM

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Re: Another post about which house to buy
« Reply #5 on: December 05, 2014, 02:45:29 PM »
I'm 28, make 90K a year. My company is moving to a different suburb so I have to move. I want to buy my first house. I REALLY wanted to stay under $100k but the only houses in that price range are about 7 miles away, so I would drive. I found a nice one for only 85K.

However, I found an equally nice one only a mile from work for $137K.

Since I have done a lot of housing research, I know what I want in a house and obviously other considerations about the houses would be made, so my question is just in general would you pay THAT MUCH more to live so close? It feels like a lot to me although it's only about 100 bucks a more/month on a 15 year mortgage.

I should add that it's incredibly rare to find a house under 200K this close to work.

Wow.....  That's an amazing house price to income ratio.  Ours will be a factor of 4 or 5 even if the market comes back down.

benjenn

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Re: Another post about which house to buy
« Reply #6 on: December 05, 2014, 03:57:34 PM »
I drive 7 miles to work and it takes me 10-15 minutes tops.  It's highway all the way so there's no way I could ride a bike (we have an awful climate so I doubt I would most days even with less of a commute).  If it were a matter of a 30 minutes commute versus 1 mile away, I'd urge you to go closer.  Time is the one thing you can never buy more of.  But with so little time difference, the cost difference is over $50,000.  That seems like a lot to me.

Seņora Savings

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Re: Another post about which house to buy
« Reply #7 on: December 05, 2014, 04:14:30 PM »
If you enjoy biking/walking I would get the house where you bike/walk.

If you don't otherwise get enough exercise I would get the house where you bike/walk.

$50,000 is pretty steep, but having a lifestyle that will make you happy and healthy for years to come is worth a lot.

What do you give up by spending more on the house?  A year of financial independence, a new boat?  Figuring out what you would do with the extra money and weigh that against the lifestyle improvement.

pagoconcheques

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Re: Another post about which house to buy
« Reply #8 on: December 05, 2014, 04:20:45 PM »
Consider as well the other places you go besides work.  You need to get groceries, do social things (work out, church, volunteer, etc.), engage in recreation activities (hiking, swimming, whatever), and so on.  If work is in a somewhat remote office park, then there may be little advantage to living that close if the other house is closer to all the other things. 

TerriM

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Re: Another post about which house to buy
« Reply #9 on: December 05, 2014, 06:44:41 PM »
I should add that it's incredibly rare to find a house under 200K this close to work.

BTW: Either there's something seriously wrong with the house, or the house will probably appreciate faster than the 100K one will. 

tracylayton

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Re: Another post about which house to buy
« Reply #10 on: December 05, 2014, 08:18:19 PM »
I would go for the one that's a mile from work.

One Day

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Re: Another post about which house to buy
« Reply #11 on: December 06, 2014, 05:28:20 AM »
Is your job fairly stable? Are there places you could get other, similarly paid jobs nearby? Is it possible the company will move again soon?

Agree with most, that a very short commute is worth the extra money. But it is important to also consider what your commute would be like to similar employers, especially if there is any likelihood of needing or wanting to change jobs. And Pagoconcheques is right: the distance traveled to reach other important places matters, financially and psychologically. (I bought too far from family, friends, and work, and deeply regret it.)