Please help me pick an area to focus

[kitkat]

DH and I are in our early/mid 20's. We have no kids yet and don't plan on trying for another 2 years so schools won't directly effect us for awhile. Even though I'm sure we'll be approved for more, I refuse to look at anything we couldn't cover on DH's expected disability pay alone just incase.

Area 1: Newer homes in suburbs. Currently great schools and neighborhoods, but hit HARD by foreclosures... most in the city actually. It's where DH and I grew up. Could afford about 1,200sq ft 3bed/1bath no basement. I'm afraid the foreclosures will make the area tank and we'll be stuck in a home I don't love.

Area 2: Big old homes in the city, lots of charm which I love. The neighborhoods and schools aren't very good, but it's minutes from the university and two huge hospitals (where we'd go to school and hopefully work after). Could afford about 1,700sq 3beds/2baths with basement. The area already isn't great, but we'd buy the perfect home hoping the area would improve as people need to move closer to work. But it's a big risk, plus big/old homes = more work.

Where would you buy and why? I need to bounce ideas around.

[Amy]

I'd pick the one with the good schools. Good schools drive up real estate values.

Or, I'd keep looking. I wouldn't just hope that the neighborhood (for home 2) would improve- I'm not sure how likely that would be.

[wb3690]

I agree. Buy for the school district even if you aren't going to have kids........good school districts sell homes. I refused to look unless the school district was good.

It IS kind of small though......maybe keep looking.

[CCArmyWife]

Dh and I just sold an older house, I will never buy a house that old again. It wasn't worth the stress of all of the crap that ended up being wrong with it. It was 1955, and passed a home inspection, but it was drafty, hard to up keep, old piping, Next time we buy it will be new-ish if not built for us.

The other posters are correct about the school districts, high demand = climbing prices.