Opportunity Cost

Bryan and I moved into our house 5 years ago thinking we would live here for about 5 years. It's a great house, but it's missing a few things we would like to have in a home as Anna gets older and we possibly have another baby. So from time to time we go to open houses and see what's available on lbar. We go back and forth as to buying a new home now while the interest rates are super low or stay where we are and wait for an upturn in the economy. It's all about those magic words from Econ: opportunity cost. If we buy now: we can get more home for less money BUT we are losing that safe feeling we have in our house now - if one of us was job less, we could still afford to live here. If we buy later: we might have more security and more income, but housing prices and rates will probably be up meaning we might not find something we like in our price range.

I won't have tenure until 2010, but I do have a pretty good feeling that my job is secure since we are adding more teachers next year. But that non-risk-taking-realist in me says, "you never know..." Bryan's job is secure, but since he works in auto-manufacturing, he's faced some cutbacks, but nothing we can't manage.

We found a house today in a neighborhood that we like. This was the first house that we both really liked and fit most "wants".

• great backyard
• move-in ready (we wouldn't have to do any remodeling, wall paper taking-down, or painting in main rooms. don't worry uk-blue bedroom, your end will be soon enough)
• hardwood floors throughout
• 4 bedrooms
• 3 bathrooms
• bonus room
• basement (unfinished)
• 2 car garage
• good location - close to places we go and my work, not horrible for B
• nice extra features (surround sound, crown molding, nice light fixtures)
• good layout
• only 3 years old
• good closets
• storage shelves in basement
• eat-in kitchen/breakfast room, but no dining room that's wasted space for us
• the windows have white "wood" blinds, so no extra cost there

A few things that it's missing:

• a WOW, super kitchen - it's good, and definitely useable without having to be remodeled, but I wasn't in love with it, you know. I thought I would get that WOW kitchen with my next house.
• no big front porch - It's just something that I think gives great curb appeal,but the backyard makes up for it.
• the family room is small and doesn't have great space for furniture, but with a bonus room and potential for a family room in the basement, it's manageable.

I think we might look into it a little further. It seems almost too good, but is the timing right???? Can we really afford it???? Would we be getting in over our heads???? I like not having to stress over bills - would a bigger mortgage stress us out? There's that pesky old opportunity cost again.

Maybe it will work out, maybe it won't, what ever happens will be the right thing.