Would you buy a home in neighborhood where neighbors make a lot more than you?

[Anonymous]

I wouldn't worry so much about having snobby neighbors as much as I would worry about stretching myself with the mortgage payments to the point where I could not do the upgrades/maintenance that I would want to do and that the house needs.

Can you do a lot of the work yourself?

[Anonymous]

I am the poor person on my block, I live in my teardown as is, wear clothes from H&M, and drive a 2002 Volvo. We keep our house tidy and my husband does all of the yard work.

I am smart enough, an excellent cook, and friendly. My husband is handy, and a great Dad that the neighborhood kids flock to, and people respect this. Our kids are well behaved and fun to play with, so they have zero social issues. After living somewhere where we were the richest people in the nicest house and felt isolated, this is a better fit for us.

I think you should do it, OP.

[Anonymous]

The Millionaire Next Door specifically advises against doing this if saving your money is important to you. That said, I think the DC area is unique. For example, your budget may limit the number of choices you have, and the current choices often include mixed, as opposed to homogeneous, neighborhoods. I live in a less expensive house in an expensive neighborhood and I love it. It's a nice place to live within my budget.

[Anonymous]

In our neighborhood, we have everything from retired millionaires who split their time in between this area and their resort properties to young couples buying their first home. It's not a fancy neighborhood and I can absolutely see why someone would want to spend a bit more and get a bigger house. I really can. But I just think that we get a TON of value with our house. I saw that when we bought it and I still do.

There is no right, one answer. Do what is best for you.

[Anonymous]

Just make sure that your prospective neighbor's name isn't Jones. Then you would feel pressure to keep up with the Joneses.

[Anonymous]

Anonymous wrote:I am the poor person on my block, I live in my teardown as is, wear clothes from H&M, and drive a 2002 Volvo. We keep our house tidy and my husband does all of the yard work.

I am smart enough, an excellent cook, and friendly. My husband is handy, and a great Dad that the neighborhood kids flock to, and people respect this. Our kids are well behaved and fun to play with, so they have zero social issues. After living somewhere where we were the richest people in the nicest house and felt isolated, this is a better fit for us.

I think you should do it, OP.

I fully agree with this, but DON'T over stretch your budget. Make sure you can make the mortgage payment. When we bought it was a stretch, but I knew my husband was going to be able to make 3 step increases in his salary and moving into this house would put us into a better school district so we would be saving money in a way by not having to move again in a few years.

If you find yourself around people that are more refined, act accordingly.

[Anonymous]

I wouldn't worry about it for myself, but I would for my kids. Kids will always compare and want what little Johnny has. This is why we moved into a less affluent school area. I wanted my kids to see that they had more than some, and probably less than others. They were somewhere in the middle. I don't want my kids to expect $50K cars to drive when they are teens, or the latest gadgets all the time, or name-brand clothes, etc..

Maybe your kids won't feel this way, but if you don't want to deal with it, I wouldn't do it. That said, even if we can afford things, we don't buy everything for our kids. We try not to spoil them too much. But if they were constantly surrounded by kids that have everything, then I think it would be much harder for us to deal with materialism.

[Anonymous]

I wouldn't. You want to find a neighborhood where you'll fit in - financially and socially. Don't be the richest or poorest family in the neighborhood. Strive for the middle.

[Anonymous]

In te real estate world buying the "cheapest house on the best block" is ideal. Your house will only go up in value and any renovations you do will add significant value.

We are in this exact situation. No problem at all except that I really want to get rolling with our renovations but we have to wait financially.

We are educated, kind, friendly, articulate, gainfully employed (but not in big money industries-more the helping professions), have happy, smart, well behaved children, we take care of our yard and our house. No problems here.

I know that my super snooty next door neighbor is dying for us to renovate so that our house will look fancy too, but I also know that she will be a nightmare during the process even though I was very gracious during her many renovations.

[Anonymous]

Anonymous wrote:I wouldn't. You want to find a neighborhood where you'll fit in - financially and socially. Don't be the richest or poorest family in the neighborhood. Strive for the middle.

I feel the opposite. But what other people might think and "fitting in" is much less important to me than good schools/location (if we were to max out our housing budget) and savings/long term investment/appreciation potential (were we to look at houses well below what we can afford). How important is it to you to "fit in" with your neighbors relative to other factors like schools, location, financial security, appreciation potential?

[Anonymous]

I don't think many people judge others based on their income, if they do, it's their problem. People won't care how your house is decorated, if it's updated on the inside, etc., but they will care about your lawn being mowed, exterior finish and your yard being tidy (the part that actually will have impact on their resale).
Sounds like you might have found a good house that will increase in value over time due to being in an expensive neighborhood.

[Anonymous]

I definitely would. People aren't as snobby in real life as they are on DCUM.

[Anonymous]

Part of the problem here is that if you want a) good schools and b) short commute downtown, you are stuck with very expensive neighborhoods. Most middle income folks simply accept the lot of commuting long distances (which is why the 'where did the money come from' thread doesn't list any Federal employees, engineers, or teachers in who is buying close-in neighborhoods).

You are making the choice to value your time over having a nice house further out. That time you spend with your children may balance out the potential for income differences.

Also, even if you move to a neighborhood where people are similar to you in income; they may live off credit or splurge in general or go bonzo at wal-mart and mcdonalds and you might be someone who lives simply; you still won't fit in. But now you are stuck driving much longer!

[Anonymous]

Anonymous wrote:

We are considering buying a home in an affluent neighborhood that has great schools, good commute for husband, nice area, family friendly, etc. We like the home but it needs considerable updating (everything is functional, liveable just outdated) and we wouldn't be able to afford to do it for awhile. (I'm an at-home mom who will not be returning to work for a couple more yrs.) The houses in the neighborhood include upper 800s to million+ homes. We would be stretching to buy this house that is considerably less. I know this seems very jr. high school-ish but I'm concerned that we wont "fit in," wouldn't have as much in common, dress "right", etc. and that it might be uncomfortable for our children who would might be picked on or feel out of place for not being able to do/afford/have what the other kids in the neighborhood do. (My children are under 5 right now, so that is in the future.) Thoughts?

I did this and it was very awkward in Bethesda. The neighbors had way, way more than we did and new neighbors right away they took the homes down to the studs and renovated, which we could not afford at the time. (+ they had family money and beach homes) Then they had everyone over. I remember at Halloween thinking everyone else house looked like a magazine spread and mine... I am a pretty self confident person, but it did get me down. It is much better to be equal if possible. Your kids are only young once.

[Anonymous]

The thing is, do you want to be around those kind of people? I wouldn't. Nothing to do with income, just would rather be with people I have more in common with.