Advice on 2 house choices

[Anonymous]

Okay I want to make sure I'm thinking things through soundly.
Young family buying in NoVA.
We have 2 choices:
1. Choice one is an "okay" 1980's house, a little farther out but still in same high school, nice neighborhood. But it checks all the boxes- 4 beds, finished basement, etc. The Plus is we potentially can assume their VA loan at a 2.5% interest rate and our mortgage payment will be 3500 month. (25 years left on loan). Commute 20-30min for both of us ( maybe a little more depending on traffic/easy pass use etc)
2. Option 2 is we have a lot that we've been trying to buy- then we'd build on it. We've been talking to a builder and getting estimates and it seems like all together land, septic, well, house with upgrades will run us close to 900k and we'll have to wait 9ish months. The lot is in a super convenient location- commutes would be 10min and 25 min and closer to stores and activities. But the neighborhood is less desirable - unpaved road, several nice new homes and other dilapidated houses ( 2 of 3 neighbors would be these older homes). But it's on a 2 acre lot so not super close. I think the lot seller would like us to rent the dilapidated house he owns next door while the house is being built. But it's really rough and I just don't think I can do that for even 1 year.
Mortgage would be closer to $4500mo ( with substantial down payment for land).

Nice house with better location for more $
Better neighborhood, okay house, for less $
Which would you choose?

[Anonymous]

1. Do you want to own a 2 acre lot? How are you valuing that (or not)?

2. How stable are your jobs? Cutting a commute time down to 10 min would be worth a LOT to me - but not sure if that’s likely to be a factor for the next 2 years or 10.

[Anonymous]

#1
Better neighborhood and lower mortgage, no waiting. #2 is a much different situation and the neighborhood doesn’t sound great.

[Anonymous]

Number 1 no question.

Building a house will either cost more than your estimate or you”LL end up with a builder grade house along with a year of hell and a high interest rate.

With kids, a nice neighborhood is really big. You won’t see 2.5% rates for a long time. If you plan to stay awhile it will make a difference.

[Anonymous]

#1 is the way to go. #2 if the builder is your husband or brother.

[Anonymous]

Not interested in building esp with well water. No. 1

[Anonymous]

No 1, completely.

[Anonymous]

I’d pick number 1

[Anonymous]

#1 by a long shot. The nicer neighborhood is worth it. Plus you get a livable house and a mortgage rate you'll never see again.

Save some money to make the 1980's house more what you want. You could immediately paint the master bedroom and make it your little nest. Take $500 and go to HomeGoods to upgrade whatever you need the most - sofa pillows, bedding, etc. It will make you love your home more.

[Anonymous]

#1

[Anonymous]

Absolutely #1. #2 is the total PITA of building and then gets you the nicest house in a not so great neighborhood which is a bad investment.

[Anonymous]

Of course #1. I don't know why you would even consider #2. You can renovate #1 to meet your needs over time.

[Anonymous]

Number 1. Get that 2.5% mortgage!

[Anonymous]

#1 absolutely. Building will be a nightmare. And you really have no idea re: cost. It will be sooo much more expensive than you can even imagine.

[Anonymous]

This is a no brainer. #1