I'm kind of new to these forums. I've read some of MMM's essays so I think I understand his personal finance philosophy. This is a dilemma that doesn't seem that clear-cut to me.
About me: I am a single, 30-something male who works in software development. I bought a new construction house in a hot area a couple years ago and I believe I have the opportunity to sell and use the proceeds to buy a house in a cheaper neighborhood while reducing or perhaps eliminating my mortgage. If I do this, I will be missing out on potentially greater appreciation in this urban neighborhood, but I am also capturing this unusual appreciation of the past couple years(who knows if that will continue). I am not totally sure where I would end up but am considering moving farther north, away from downtown and in the direction of my job.
Besides the geo-arbitrage potential, I am really sick of noisy neighbors and most of the things I need to use require driving several miles anyways. The traffic is sometimes pretty awful, especially during festivals and conventions that often happen nearby.
My total payment (inclusive of PITI & property taxes) is currently about $1700/mo, mortgage $232,000 and my realtor suggests listing it for $420 - 470k.
Houses in the areas I am considering range from $150 - 350k; the farther out from the city center, the lower the price.
One of the neighborhoods I am considering would be considered suburban - there is no real town center and I would have to drive everywhere, but I am very tempted because I could come out ahead financially. Ditching my current place and buying there could free up over $1000/mo in cash flow. However, I'm not sure it would be worth the lifestyle tradeoff. I like the idea of living close to what I need. I don't go out much, though, so being close to bars and trendy restaurants doesn't really seem worth the increased cost. I drive most places (groceries, gym, office, etc), where I currently live anyways.
I need some help thinking about this.
Thoughts?