This is personality dependent. What is desirable to most is not desirable to me. I tend to be antisocial. I really don’t like people so you can have the city, shops, restaurants, and bars.

For me, the choice is between bottom end in the ghetto to reduce overall cost of living, or pay extra for a little less ghetto.

I might be in escrow soon. With my current offer I opted for a big lot with options (house plus granny flat, could actually be 3 units). The only place you can get 1/2 acre or more is the boonies (35 minute commute each way).

I look at that big yard with all the trees and just see a lot of work that I am not anxious to do. My wife looks at it and sees a play paradise for our 19 month old. As active as my kid is, I have to agree with the wife. Time to get a dog and cut the kid loose to run around.

If I pull the trigger I fully expect to be a long term landlord as I see the downside risk. But it is cheaper than renting. Having followed the market seriously since 2004 I am at a loss as to what lies ahead. Common sense seems to say price declines are still possible but with 20% down, at the offer price I should be able to comfortable cash flow the property as a rental (plus several hundred dollars of rent decrease buffer) if I have to move. Not that 2007 prices are any indicator, but 55% off 2007 prices probably has a lot of the downside beat out of it.

I mostly analyze based on total cost and downside risk and don’t care so much about location.