Advice deciding between 2 great houses in Arizona
My husband and I are trying to decide between two homes in Mesa, AZ, and we’d love some outside perspectives, especially from people who have owned homes or invested in real estate.
About us:
Both 23 years old.
Household income: about $106k/year gross
Over $32k in savings.
Planning to use an FHA loan.
No kids.
Our biggest goal isn’t just owning a house, we want to build wealth, invest, travel, and ideally reach financial independence earlier in life.
Option 1: New Build ($480k)
Pros:
4.5% fixed interest rate through the builder (special incentive).
Builder pays closing costs and realtor fees.
New construction (less maintenance expected).
Nice newer neighborhood.
1,600 sq ft.
Blank slate to landscape and customize.
Cons:
About $3,000/month payment.
HOA.
About a 40-minute one way commute for me.
Very car-dependent since it’s a newer development.
I’m unsure how strong the rental demand will be in that area if we ever decide to rent it out.
Option 2: Older Home ($415k)
Pros:
About $500/month lower payment.
Central Mesa location.
No HOA.
Close to bus routes and amenities.
Shorter commute.
Similar lot size (~7,000 sq ft).
Cons:
6.5% interest rate.
Older home with possible repairs.
We’d likely need to negotiate/pay some closing costs and realtor fees.
Smaller at about 1,300 sq ft.
One thing that’s making this difficult is that the builder’s 4.5% interest rate feels like a huge opportunity. On the other hand, the older home gives us much more monthly flexibility, which would let us invest more and travel without feeling stretched.
If you were in our shoes, which would you choose and why?