Greetings fellow Financial Samurai. Bruce here. I recently dropped a note to Sam about a financial conundrum that I was working through as I appreciate the analytical approach on this blog. Sam suggested that I write it up and engage the Samurai community to help with the alternatives analysis.
My wife and I are in our early 30s, are currently child-free, and live in the suburbs of Atlanta, Georgia. About three years ago we sold the condo we had purchased as our first marital home and bought a suburban house northeast of Atlanta in an area with the best public schools in the city called Marietta.
The house was the cheapest house in the best school district and definitely on the low end of the neighborhood as well. We paid 167K and there were only one or two other homes less than 200K in the high school district at that time. As luck would have it, we just happened to be buying within 30 days of the market bottom in January 2012 for the suburban Atlanta area.
We invested a decent chunk of change (~50K) in renovating the finishes of the home to give in a semblance of the style we like from watching exorbitant hours of “Property Brothers” and other similar shows on HGTV.
After living in this area for the last two and half years, my wife came to me with a proposal that we look into moving further south from the suburbs of Marietta closer to the urban center of Atlanta. She laid out the logic including the following:
- She works closer to downtown Atlanta and her commute would go from 45 mins to an hour each way to around 20 minutes each way
- The neighborhood/area we currently live in is dominated by families and children with very few single couples. This affects making friendships and means we will always be driving somewhere else if we are going out with our fellow child-free friends. Basically, why don’t we live in the city of Atlanta and enjoy the more active community while we have the opportunity? We can always move back to the suburbs if and when we do have a kid and they don’t start into public schools until they are six or so years old anyway.
- The restaurants and bars in the suburbs are typically chain restaurants and sports bars. All the music venues, hip restaurants and bars are in Atlanta
I heard my wife’s impassioned appeal and decided to get on board with her plan to move to the City of Atlanta. I think the part that excites me the most is the opportunity to live in a walkable community. Everything in the suburbs involves getting in a car, but the area we are moving to allows for a ten minute walk to one of the most popular bar and restaurant districts in the city.
When we purchased our suburban house, we had pictured being there for the long haul (probably ten years or so), but with the renovations adding value and the market appreciation we felt confident with the numbers and changing our plans to move in-town.
However, we both agreed that because we have never lived in-town before, we would rent for the first year as opposed to buying a home in the city. The houses in the area we are going to be renting are almost twice as expensive as the suburbs we currently live in, and we want to make sure we are buying in the right area where we will want to settle in for at least 4-5 years so that we don’t repeat the same mistake of moving to an area that doesn’t end up being our cup of tea. By renting a home in the city, I think we will be able to figure out what makes the most sense to buy when we are ready after our 12 month lease is up.