Starter home vs forever home

Facebook sum42pwd
Feb 12 28 Comments

I need help between two options

1) 4 bedrooms, town house, no real yard, great schools; ~950k, can afford downpayment comfortably, will likely want to move after 3 or so years

2) 4 bedrooms, single family, good sized yard, great schools, great amenities, 1.25M, would be happy in this house for a long time

I can comfortably make monthly payments on both, but the downpayment for the 2nd is going to require me to use all my non retirement savings

What to do? Be sensible or yolo?

TC: 430ish, 500 if stock bounces back

comments

Want to comment? LOG IN or SIGN UP
TOP 28 Comments
  • SAP hh@33
    I’d rather think long term and just get the better place. Especially if you’re starting a family soon why bother moving them. Moving schools too.
    Feb 13 0
  • Glassdoor questionss
    yolo
    Feb 12 0
  • Adobe Coco Puff
    4 BRs? Do you have children? Single? Married?
    Feb 12 2
    • Facebook sum42pwd
      OP
      Married, 1 kid, more planned for later.
      Feb 13
    • Adobe Coco Puff
      Option 2.
      Feb 13
  • Facebook EOfK62
    Where are you getting 4 bdr townhome for 950k?
    Feb 12 3
    • Facebook sum42pwd
      OP
      Tri Valley; commute will suck
      Feb 12
    • Does your employer have a shuttle?
      Feb 13
    • Facebook sum42pwd
      OP
      Yes they do; hoping to get work done on shuttle
      Feb 13
  • New / Product
    ʕ•ٹ•ʔ

    New Product

    PRE
    Amazon
    ʕ•ٹ•ʔmore
    FYI, Dublin was THE city hit ugly in the last financial crisis. It took years to get back to normal compared to other Bay Area cities backed to normal very quickly.
    Feb 13 2
    • Facebook sum42pwd
      OP
      I did not know that. Thanks for the heads up
      Feb 13
    • VMware BobbleHat
      I don’t agree. Antioch would be much better descriptor of the city hit by recession.

      But in general, the growth areas around the edge are the first to see impact when growth stops.
      Feb 14
  • Google / Eng yogi bear
    please let me know where option 2 is, I am gonna buy it immediately.
    Feb 12 1
    • Facebook sum42pwd
      OP
      Ok genuinely not saying too much because I’m afraid someone here will swoop in and buy. Ask me again in a week :P
      Feb 12
  • Facebook public2
    2
    Feb 12 0
  • Oracle / Product edxks
    Option 2. Fremont Area? For me, Hoa is a waste of money
    Feb 13 2
    • Facebook sum42pwd
      OP
      No, Dublin
      Feb 13
    • Oracle / Product edxks
      I have known people who moved back from Dublin to Fremont citing that for activities for kids they had to drive almost close to Fremont for major classes and activities.
      Not sure whether Dublin has great activities centered around kids.
      Feb 13
  • Google TLxh20v
    If you are likely to move in 3 years with option 1, you should factor in transaction costs, stress associated with finding a new home and property tax changes. Depending on what you think the market will be like in 3 years.

    Also I've seen somewhere that people have the tendency to overestimate how long they will stay in a home. (Consideration for option 2)
    Feb 12 1
    • Facebook sum42pwd
      OP
      Most likely will opt to rent the place out instead of putting it on the market. Need to hold for 5ish years to break even.
      Feb 12
  • VMware BobbleHat
    With a baby a yard is 100% worth it.
    Feb 14 0
  • Apple aqsw
    Option 2
    Feb 13 0
  • Oracle wochdusu
    2
    Feb 13 0
  • Dell Shortyy
    Op u look like the richest person on blind
    Feb 12 0
  • Oracle Numbats
    If you plan on living in it for 10+ years, then I would say Option 2. If you go with Option 1, you will likely not move. Seems like the only difference between the two houses is the yard. I understand having a yard is nice, but is not major enough an inconvenience that you will move.
    Feb 13 1
    • Facebook sum42pwd
      OP
      The two are significantly different in terms of layout as well as square footage actually; will have to sell some furniture with option 1 because they don’t have a loft or a 2nd sitting room.
      Feb 13
  • Amazon J.B.
    What about your commute?
    Feb 12 1
    • Facebook sum42pwd
      OP
      They’re similar, these two places are about 2 miles apart
      Feb 12