Recession Proof? Upscale vs Modest Neighborhood

[Herwin G.]

Hi team - wife and I are evaluating homes for our personal residence in Phoenix / Scottsdale. We're concerned about the market being too hot, but it'll still be cheaper to own vs rent. We're looking at homes in two areas - which of the two do you think would fare better in case a downturn materialized?

1) Modest Neighborhood - newer homes (2000), 3/2  plus den, 2100 sq ft, single story. Nice pocket (6 out of 10), 10 minutes to nearest shopping center. Lowly rated public schools, but highly rated charter schools close by. Prices around $310k. (Eagle Summit, 85024, AZ)

2) Upscale Neighborhood - older homes (1987), 4/2.5, 2100 sq ft, two stories. Upscale pocket (8 out of 10), 5 minutes to nearest shopping center, and 10 minutes to another upscale shopping center. Highly rated public schools. Prices around $430k. (Arabian Views / Original Desert Ridge, 85254, AZ)

What area would you choose? or what else would you want to know before deciding?

Thank you in advance!

[Thomas S.]

Purchasing a personal home is a life style choice not a investment. A personal home is in fact a liability since it produces no income.

You state that your choice is based on purchase being cheaper than renting. Nothing could be farther from the truth. Home ownership will always be more expensive than renting which is why it is a life style choice not a investment.

Over the life time of owning, except in a few very select markets, the cost to own will match or exceed any amount a personal home will ever be worth.

Choose the one you can most comfortably afford when factoring in all costs not simply the cost of the home and decide accordingly. Keep in mind most home buyers purchase far more home than they actually will ever need....lifestyle choices are seldom based on logic.

Importance of public schools is highly overrated. Parents are always responsible for supplementing their children's education at home.