Is it better to be a cheaper house that may need some TLC...

Question

or a house that is the price of the TLC plus the $20,000 you may need to put up to pay for the maintenance (TLC) issues on the cheaper house.

I wanted to buy a house that was relatively cheap but would have needed $5000 of work up front and eventually an additional $15,000 or more worth of work to live comfortably. I'm not talking about remodeling a kitchen with stainless steel appliances, but a new roof, a new furnace and water heater within the next 2 - 3 years.

What are your thoughts?

Answer 1

TLC can cost more than brand new in many cases you really don't know what you are getting into until you start tearing things down and sometimes you just have to keep going and going.

Answer 2

that's really a hard question.  

that's really a lot in repairs, so ou need to make sure your are getting the house cheap enough to allow for that.  plus there may be other things that come up as well.

it really depends on your own personal situation with finances, time, and willingness to work with people to get the repairs done.

Answer 3

It depends on the neighborhood - and the house. There's a saying that you should buy the worst house in the best neighborhood instead of the best house in the worst neighborhood. What's good about buying the cheaper house is that your mortgage costs are relatively stable (if you finance), and the repairs can be done over time, as you have the means to afford them. There's no guarantee that a more expensive house will not have unforeseen issues as well, which would really strain your budget if you're making a higher mortgage and property tax payment.

Answer 4

It all depends on what you want to live with - if you're comfortable moving into a place that needs some work, then why not?  That way it's not a huge expense all at once, you can take your time.

Answer 5

There is no guarantee those things won't break or need repair in the more expensive home!!