Which house would you choose? My husband and I are looking for a new house. Our realtor showed us two we like.

House 1:
- Older neighborhood that is becoming a "hot" real estate area in the city but is not actually "hot" yet.
- Neighborhood actually is kind of unsafe, but not so much that we feel living there would be dangerous.
- 2,500 square feet, recently remodeled but some work would need to be done, including possible replacement of a very old furnace.
- Good school district and close to downtown work/shopping areas, parks, etc.
- Very interesting architecturally, house was built about 1920 and has been kept in good shape/updated thoroughly.
- $40,000 more than house 2.

House 2:
- Nice neighborhood, very safe, in a desirable part of town.
- 1,800 square feet but is a very average design, floor plan, etc.
- Kitchen needs a complete overhaul - new cabinets, countertops, appliances, etc.
- OK school district, not great.

For house 1 the attraction is the house. For house 2 the attraction is the neighborhood. We want to make a smart investment for our future. Which house should we choose?

Details:
We do have one son, we are unlikely to have another (infertility, we were lucky to get him). He is 10 months so won't be in school for awhile. We have been in our current house 6 years and plan to stay in this next house for quite some time.

As far as price - the first house is priced very well for its size and for the neighborhood. Even with upgrading some things I am pretty confident we would get our money out of it later. I am concerned the second house is priced right at the top of the range of what people are willing to pay in that neighborhood. I am concerned that when we decide to sell it we would struggle getting what we would pay for it, much less get any money back that we invested into it.

We are not in a hurry to move so we may keep looking until we find the best of both worlds.

Thanks for everyone's responses. :)

If you can afford house #1 and you're willing to live there for quite a few years (until the neighborhood becomes more desirable), I would go with it. I can tell you love this house and you don't love the other. If you love a house, you'll be willing to overlook its imperfections.

I would keep shopping around. Buying a house is a huge step, and many things need to be considered. It sounds like you are on the right track with the safe neighborhood, school districts, and condition of the house. Keep looking, the right place will come along soon enough!

Hmm sounds like both houses will need some renovations. A kitchen overhaul can be anywhere from a couple grand to $40,000 so you might want to think about that. Both are very spacious, how much house do you need? A 2500 sq ft house may end up being too big for you in the near future. But it really is about your decision. If you don't feel like one of them is grabbing you more than the other, maybe you should keep looking... A house is a long term committment.

I would choose house #1. It has more perks. Close to downtown work/shopping. Good school district. Older neighborhoods tend to have people that live there longer, hence the knowing of your neighbors. 1920 house updated, would be an asset further down the road in regards to selling it.
Alot of your decision would have to be based on children. Do you have children? Now, or down the road. What would be best for them? An ok school district, with a safe neighborhood? Or a great school district, with a not so good neighborhood? If you do not have children and do not plan on having children, i would choose house #1. House # 2 if i had children.

Too close to call. I would probably pick 1, as it is bigger and I need lots of space. The overhaul costs for 1 should be slightly less than for 2; new kitchens are expensive. In either case, make sure that there is money available for the overhaul; expect your bills from the hardware store to exceed your mortgage payments for the first few months.

I just bought a house so this is very fresh in my mind. Go for the interesting house. Buying a house is a major! investment and presumably you will be there a long time. Even though it is more money it is also much larger. There will be more to keep you busy and you can create a wonderful tapestry to show your own personality. The smaller house may become boring and you will wish you had bought the more interesting house. ( I know I do!!) And one day it may also become "hot".

Hi, I am having the same problem choosing a new home but My opinion would be safety first. I think that when it comes to a home your gut will tell you when you have found the right one. I would keep looking until you find one that is both in a good neighborhood and reasonably priced.