Tuesday, May 26, 2009

The Un-Sustainable Suburbs

BusinessWeek ran an article last week about the premium costs residents have to pay to live in upscale suburbs and whether the cost is really worth it

From the article:

"But residents are also paying a premium for the cachet that comes with having a certain Zip Code. They want to live with their peers, go to the same country clubs, and send their children to the same schools. For those who aspire for a lifestyle upgrade, there's good news. Home prices in upscale towns are falling even as mortgage rates hover near historic lows. Luxury homes are lingering on the market not just because buyers are losing jobs and wealth, but because jumbo loans are difficult to get.

But even buyers who can afford the discounted homes in upscale communities have to consider the everyday costs, says David P. Brady, a financial planner and owner of Brady Investment Counsel in the Chicago suburb of Geneva, Ill. "It might look like a great value, but once you think about all the costs…you might be a lot better off staying where you are," he says. "

Read the full article here.

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