Purchase in a pricey area or college town?

[Orchidflower]

Assuming finding employment is no longer a factor (you no longer work, you work from home for yourself or any variety of scenarios)--except for the fact that high unemployment often brings on high crime--which situation would you say is the better option:

1. Purchase a home in an affluent area where the real estate prices have fallen tremendously--with a high unemployment rate now--on the assumption that the price will again go up and the employment rate will eventually turn, also; however, you've gotten a heck-of-a-deal on your property if all goes well. Think Scottsdale, Hilton Head, any city in California or Florida practically, etc.
OR
2. Purchase a home in a university town where unemployment is still strong and real estate prices have held their value, and, even if unemployment rates do fall, that college town will still be healthier there than most cities by far? Granted, this means your property value won't skyrocket either later, but no high crime either, most likely. Think Ann Arbor, Gainesville or any of the fiscally healthy college towns.

Alot depends on how long this recession lasts, but, all things being more-or-less equal, which move do you think is the smart one?
I'm curious as to what the board members think about this as I just hashed this over last night with a friend. Thought it was an interesting dilemma to pass on, but we were assuming the recession would last 5 years max.

 

[Trek]

Granted, this means your property value won't skyrocket either later, but no high crime either, most likely. Think Ann Arbor, Gainesville or any of the fiscally healthy college towns.

Despite being a college town, Gainesville is a very high crime area. Higher than the national average in almost every crime sector. Serial killers and rapists also come to mind. Still a cool town, just saying.

 

[haha]

Assuming finding employment is no longer a factor (you no longer work, you work from home for yourself or any variety of scenarios)--except for the fact that high unemployment often brings on high crime--which situation would you say is the better option:

1. Purchase a home in an affluent area where the real estate prices have fallen tremendously--with a high unemployment rate now--on the assumption that the price will again go up and the employment rate will eventually turn, also; however, you've gotten a heck-of-a-deal on your property if all goes well. Think Scottsdale, Hilton Head, any city in California or Florida practically, etc.
OR
2. Purchase a home in a university town where unemployment is still strong and real estate prices have held their value, and, even if unemployment rates do fall, that college town will still be healthier there than most cities by far? Granted, this means your property value won't skyrocket either later, but no high crime either, most likely. Think Ann Arbor, Gainesville or any of the fiscally healthy college towns.

Alot depends on how long this recession lasts, but, all things being more-or-less equal, which move do you think is the smart one?
I'm curious as to what the board members think about this as I just hashed this over last night with a friend. Thought it was an interesting dilemma to pass on, but we were assuming the recession would last 5 years max.

I would say the better option is whatever appeals to you on a gut level. We won't live forever, and at least once we are in our late 50s I think it's time to please yourself. Try to do your speculating at arm's length from your life.

Ha

 

[Khan]

I live in a college town and there are pros and cons. I rather like it, but I didn't buy here because it was such.

 

[ziggy29]

College towns are all the [-]hype[/-] rage in a lot of the retirement planning and "retirement cities rated" guides. I guess if you put a high value on a recession-resistant economy, educational and cultural opportunities it's good -- and sometimes good medical facilities, too. But if those aren't that important to someone, they are way overpriced relative to the typical wages and salaries found in the area. There's definitely a "college town" premium priced into many of them, and sometimes it's rather steep.

 

[MichaelB]

If I currently had safety concerns where I live, the option of a nicer community with permanent population would be more appealing.

College towns are kind of bipolar - split between the well paid college professor type and the highly mobile minimum wage type. Better cultural lifestyle but a large mobile population as well, which usually brings some problems with crime and safety.

Real estate crashes seem to me to be opportunities to acquire high quality real estate for low prices.

 

[W2R]

I don't think there's much point in choosing a retirement town based on how well a house there might appreciate. Along the lines of what Ha said, it makes more sense to choose based on what makes you happiest.

I liked living in a college town. There were a lot of free or cheap activities and even major cultural events, out of proportion to the size of the town. The university library was a wonderful resource and provided many pleasant afternoons. Many universities allow senior citizens to audit classes for free or at a discount, too. Disadvantages were traffic during home games, limited shopping, and high property/school taxes because it was in Texas. Faculty types, grad students, those in support/service occupations, and undergrad students tended to segregate themselves in different parts of town at least to some extent so it's not like you'll have an Animal House frat party going on next door or anything. Our neighborhood was inexpensive (mostly younger faculty), quiet and there was almost no crime.

I don't think I would like living in Yuppieville, even if I could get a McMansion for a bargain. I really don't have any desire for a McMansion and a Beemer, and a community like that just isn't for me.

 

[Orchidflower]

Ahh...this poll just started, but I was waiting to see who would state the obvious that high quality real estate can be had for no moola if you are willing to wait and speculate. Thanks, MichaelB.
Well, let's see if anyone thinks speculation is the "smart" move here...hmmmm...

 

[Moemg]

There are only a few areas of Florida that would be considered affluent and they are all on the coast . The rest of Florida varies from upper middle to middle class to downright scary . So I would never move to Florida or anyplace just to make a few bucks on a house . I'd rather move to an area that had what I wanted no matter what the housing situation was.

 

[Notmuchlonger]

I said 1. All I have to say is head to any California coastal town 365 days a year. Then you can drive 2 to 3 hours and be skiing in the mountains or dune bugging in the desert. That is why people want to live here.

Now im moving out in retirement. Its expensive to do those kind of things. But if you are looking for housing appreciation there you go.

Oh Ill add I am confident 5 years from now the real estate boom will be blossoming again.

 

[Orchidflower]

I tend to agree with you, Notmuchlonger, and I've heard on tv that those that pay with cash in Phoenix, Vegas and other bust areas that were pricey are getting fabulous deals now, too.

 

[Amethyst]

What, exactly, is a McMansion? It seems some people use that term for any house larger than their own.

Not a naive question... I have heard the term used very often. I have my own definition in mind, but it may not match others'.

 

[W2R]

What, exactly, is a McMansion? It seems some people use that term for any house larger than their own.

Not a naive question... I have heard the term used very often. I have my own definition in mind, but it may not match others'.

You're right - - that is a vague description! When I say "McMansion", I envision a brand new home (often on a postage stamp sized lot) that is several stories high and at least 3000 square feet, in a brand new subdivision full of other huge houses. More than size, it has to have all the possible amenities and luxuries. Probably anything built by Toll Brothers would qualify, like this one.

Edited to add: Ah!! Here's a definition in Wikipedia, that more or less agrees with mine.

 

[freebird5825]

I picked college town, but I would add the condition of being close to a college town, not inside the city limits. College towns can be pretty rascally. And sometimes they attract a lot of undesirables (predator types) because of the coed population.
The proximity of colleges is wonderful for the local economy, but living in town when the population surges, along with the "ameteur nights and weekends" would be a bit much for me.
I've evolved into too much of a country mouse. I love my peace and quiet out here.

 

[Amethyst]

What's a McMansion?

Gee, the name McMansion sounds so tacky and ugly, but the listing you posted is of a very pretty house IMHO. (Maybe the tacky part is only that so many people bought new homes without being able to pay for them).

Houses in developments do tend to look alike...builders can't take chances on turning off buyers, so they build the house styles that they know will sell. I always dreamed of being able to have a custom home built, but now I've settled for paying off the one we have...picture attached. It is 18 years old and sits on 3.5 acres...is it still a McM?

 

[Orchidflower]

Well, I'll say it definitely looks like a McMansion to me. And a very beautiful one.

 

[Notmuchlonger]

Damn i want one or two of those myself.

 

[BunsGettingFirm]

Ann Arbor, eh? Why not Fort Collins or Boulder? I have lived in two and visited the other frequently enough to know it. Ann Arbor has better classical music concerts and two lively downtown areas, one near the campus on State Street, and the other one on Main about 1/2 mile away. The concerts are so good that you can see world class musicians from 3rd row orchestra seats for $7 if you're shameless enough in your intermission upgrade.

The two Colorado cities have better outdoor sporting opportunities. The concert series are not as great but still decent. The winter in Colorado is nowhere as brutal as those in the East and Midwest.

 

[Bestwifeever]

Your photo looks like a regular mansion to me, Amethyst--no "mc" about it.

 

[M Paquette]

Your photo looks like a regular mansion to me, Amethyst--no "mc" about it.

Yah. Out here in the stranger parts of California, McMansions are noteworthy for being both ugly and built right to the (very small) lot limits.

Here is a very beautiful example from the greater Los Angeles area, Chatsworth CA, starting at $899,900.

Note the front, designed to look like an urban car park. In general, McMansion architecture calls for as much garage door visibility as possible. The design should look like a place where cars live, and keep their drivers in the servants quarters.

Here's another gem from Northridge, a bit north and east of central Los Angeles, only 1,790,000 in 2006, such a deal, resold in 2007 for 1,192,000, current Zillow estimate 883,500. Probably not a honobob investment.)

The images are all courtesy of la.curbed.com

 

[Westernskies]

I don't think there's much point in choosing a retirement town based on how well a house there might appreciate. Along the lines of what Ha said, it makes more sense to choose based on what makes you happiest.

I liked living in a college town. There were a lot of free or cheap activities and even major cultural events, out of proportion to the size of the town. The university library was a wonderful resource and provided many pleasant afternoons. Many universities allow senior citizens to audit classes for free or at a discount, too. Disadvantages were traffic during home games, limited shopping, and high property/school taxes because it was in Texas. Faculty types, grad students, those in support/service occupations, and undergrad students tended to segregate themselves in different parts of town at least to some extent so it's not like you'll have an Animal House frat party going on next door or anything. Our neighborhood was inexpensive (mostly younger faculty), quiet and there was almost no crime.

I don't think I would like living in Yuppieville, even if I could get a McMansion for a bargain. I really don't have any desire for a McMansion and a Beemer, and a community like that just isn't for me.

Springfield is quite a college town... I lived there in the late 1970's; got my undergrad degree at Missouri State. Drury College and several small Bible colleges are there, spread all acrosss town. Finding a neighborhood without student or faculty population might be a challenge. MSU is quite a party school, the others less so.

Have you found a house there yet?

Psst... Bamboo Inn for Cashew Chicken... heh.. heh

 

[W2R]

Springfield is quite a college town... I lived there in the late 1970's; got my undergrad degree at Missouri State. Drury College and several small Bible colleges are there, spread all acrosss town. Finding a neighborhood without student or faculty population might be a challenge. MSU is quite a party school, the others less so.

Have you found a house there yet?

Psst... Bamboo Inn for Cashew Chicken... heh.. heh

Springfield has grown a lot in recent years and has a population of around 155,000. With only 19,348 students last year, these days Missouri State may be less of an influence on the community (outside of its immediate neighborhood) than it was in the 1970's. Drury only has 1,555 undergrads.

The combined enrollment of these universities is about 13% of the population. Here in New Orleans, the combined enrollment of Tulane, Loyola, Xavier, and UNO is about 10% of our most recent population estimates, but I don't really regard New Orleans as a college town either. The population of College Station, Texas is about 69,000 but Texas A&M University enrolls over 48,000 students, equal to more than half the town's population and I would regard College Station as a college town.

As to your question about finding a house - - we have found houses that we would buy tomorrow if the time was right. In fact, there is one that would be absolutely perfect for Frank and we are keeping an eye on its online listing, hoping it will still be available next year. We do not want to buy until we sell our present homes - - don't want to get stuck with homes to take care of in two different states.

 

[Amethyst]

Interesting feedback. Thanks for the "Mc" compliments and clarifications. Homes built right to the edge of the lots - ick. But as my mother always said about houses she didn't care for, "It's probably beautiful inside."

Sorry, I committed a bit of a thread-jack. I was going to say that we visited State College, PA with an eye to moving there after I retire. I would echo what others have said about the "college-town premium." The home prices in Centre County are almost as high as where we currently live, and the property taxes are a bit higher. Cross the county line, into a different school system, and prices are slashed. Yet the scenery is oddly identical on either side of the line :smile:

 

[W2R]

I think that what started the McMansion discussion might have been my statement that

I really don't have any desire for a McMansion and a Beemer, and a community like that just isn't for me.

Didn't mean to offend anyone, especially Amethyst, though she doesn't seem offended and I think/hope she was just inquiring.

To expand upon my original statement - - my present house is not a McMansion (see photo). It is more of a "1970 McAverage", I suppose.



But it is all that I need or want to take care of. As it is, there are a couple of rooms in my house that I never use, and I sure don't need more unused rooms to heat and cool, dust, and vacuum. There is only one of me.

My dream of the perfect retirement house (for me) would be a 40- to 50- year old 1500-2000 square foot home, like this one (but with a garage and a 1/4 to 1/3 acre yard so that I am a little farther from my neighbors). It would also be in an older, settled neighborhood and I could just walk down to the corner market to pick up a half gallon of milk or whatever. My ER dreams just don't fit with "the pricey house in the flashy town on the cheap", as Orchidflower put it.

 

[HFWR]

A quick and dirty web search reveals that house sizes averaged 1400sf in 1970, and increased to 2500sf by 2006.