My fiancé and I are considering buying a house. We're in our late 20s and plan on moving from our low rent apartment in a relatively upscale area to the house we'll potentially buy. Now we have two or three options when it comes to home buying.
Option 1. Buy a starter house, that will not be a significant upgrade on our current apartment. We can easily afford it. But I'm not sure about the return on investment. Especially considering the fact that we might have to buy a bigger house anyway, when we have kids. We plan to have kids within next two or three years.
Option 2. Buy a single family house. A relatively old one, built around 1960s and fix it gradually over time. e.g. finish basement, change appliance etc. If this kind of house is in the area that we live, which is what we want, it'll cost us an amount, that's in the mid range of what we're willing to spend. Our range is 220-320k. And let's say, this house will cost us 250k and we'll spend 70k over time.
Option 3. This is the option, my original question is all about. Let's say we buy a brand new built house (e.g. Pulte Homes), in the outskirts of the city, but in a rapidly developing area and out 300k towards it. Does this choice make sense in terms of the value we will get when we decide to sell the house, let's say in 7-10 years?
What is the best option from all the above in your opinion? And for what reason?