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NARRATOR: Sarah and LJ
are about to welcome a new addition to their family
and need to find a bigger place to live in Philadelphia.
High five.
Deal.
But they're divided on finding their next home.
Sarah wants to rent.
I don't think it would be smart to invest in something
if we don't want to be there long-term.
LJ wants to buy.
I want to be able to buy a house, be settled.
With the help of their agent, they'll see two rentals...
Oh, wow.
Oh, wow.
...and two properties for sale.
This place is the definition of a starter home.
They'll tour the spaces...
This would be perfect for a baby's room.
...do the math...
JACKI: Parking is an additional $40,000.
$40,000?
...and make a decision.
We saw a lot of great places.
Which is the smartest move for them?
So, I guess the question is, do we rent, or do we buy?
Find out on "Rent or Buy."
-- Captions by VITAC --
Closed Captions provided by Scripps Networks, LLC.
Philadelphia couple Sarah and LJ
have been married for a year and a half.
They live in the Rittenhouse neighborhood
in a one-bedroom apartment,
which they're outgrowing,
as they're expecting their first child in a couple of months.
We're having a little girl. It's our first one.
Our life is about to do...
Our life is gonna not be so much our life anymore.
It's gonna be her life.
It'll be all about the baby.
When we first saw this place,
the apartment itself was very charming.
The word "charming," when describing a house or apartment,
means things are old -- the appliances are old,
the doorknobs are old,
the windows are old, the shower is old.
One thing we definitely don't like
is the space in the kitchen,
especially because they don't even have,
like, really many three-prong outlets.
Uh -- Oh.
Sorry!
Forgot to tell you.
When we turn two appliances on in the kitchen,
we literally blow a fuse.
Family and convenience are priorities
in their search for a new home.
The one thing that I hate is the parking around here.
Sometimes it takes me an hour and a half
to find a parking spot when I get home at night.
It's not how I want him coming home.
Yes.
What about, like, a fun, little pea coat?
That's cute.
Sarah likes always the most expensive place, usually.
Not on purpose.
I do a good job of, like, taming our expectations.
Hi, Daddy!
If there were two mes, there would be chaos.
And if there were two hims, there would be boredom.
What?!
Not boredom.
I am not boring at all.
No. No. No.
It wouldn't be boredom. It would just be beige.
[ Chuckles ]
NARRATOR: They hope to spend no more than $2,250 a month
in rent or on a mortgage.
If they buy, that means they're prepared to shop for homes
that list for up to $385,000.
We're still not sure whether we want to rent or buy.
I just think buying at this point in time,
where we are in our lives, makes sense
just because of all the money we've been throwing away
over the years in renting.
But this one over here...
I want to rent.
I just -- I want to rent for now.
JACKI: We're starting to see buyers come from other cities,
like New York.
Philadelphia's considered one of the most affordable big cities
in the country,
so they can come here and buy a nice house
for $300,000, $400,000.
It would make sense for them to buy
because interest rates are really low
and so are housing prices,
but they could continue to rent
and stay in the city for another couple of years
before they want to settle down in the suburbs.
It's great seeing you.
Oh, you look great!
Thank you.
I'm so excited to talk about what we want.
So, what are some of the things you're looking at?
We definitely need at least two bedrooms.
My biggest thing is more accessible parking.
I don't want charming anymore.
I want updated appliances, modern, and convenience.
I definitely want at least 1 1/2 bathrooms.
A second full would be great.
And I think living in Center City, Philly, is awesome,
so if we could stay in that area and maybe not leave the city
and not go to the suburbs anytime soon,
that would be wonderful.
I'd love to buy, especially in a neighborhood
that's a little bit more up-and-coming.
More or less, I'm just sick of throwing money away renting.
I really would like to rent.
NARRATOR: Today, Sarah and LJ are looking at a condo for purchase
in Bella Vista,
an up-and-coming Philadelphia neighborhood
that's still close to Center City.
It lists for $350,000,
so their mortgage would be $1,950 a month.
Hi.
Hey, Jacki.
How are you?
How are you?
Let's go check it out.
Wow. This place looks really nice.
Oh, wow.
Oh, wow. This is gorgeous.
I love how open the windows are,
and the ceilings are nice and and high,
so it gives, like, a nice feel to the room.
This is a brand-new two-bedroom, one-bath condo,
and it's 1,000 square feet.
LJ: The only thing I don't love...
This wonderful cord?
I wonder if we could decorate it for Christmas,
put lights around it?
One of the best things about this place
is that everything is brand-new.
It's so brand-new, nobody's even touched it.
Exactly.
I love that.
It's a drawer.
[ Chuckles ] That's a drawer microwave.
Microwave popcorn in a drawer.
I love it.
Does parking come with this place?
Now, parking for this unit is an additional $40,000.
$40,000?!
American?
Yes.
Do you own that for life?
It would be a deeded parking spot, yes.
This is an up-and-coming neighborhood.
This was built by a reputable builder,
who's also building million-plus-dollar townhomes
just a block away.
So, even though space is a little compact,
down the road, this place, you know,
could make us a good amount of money.
I just think that this is at the top of our budget,
so I think if we are gonna buy something
with hitting the ceiling on our budget,
we should get everything that we want.
I mean, our family's only gonna grow.
We're four blocks from Center City.
I can't imagine the values around here going down.
I was surprised when she actually told us the price tag.
I actually thought it was gonna be at least $100,000 more.
Nice.
Very nice floors.
But this is still pretty tight space.
I think for being at top of our price range,
space-wise, is all a little bit small for us.
Sometimes you have to sacrifice maybe a little bit of space
for the potential investment down the road.
Do like the fact that the shower's very new,
so we'll know what temperature it's gonna be.
We can adjust it accurately.
You're not gonna have to hear the water dripping.
I can't hear you getting in the shower
and the water dripping throughout the evening.
I don't love that it is the only bathroom.
It's a little narrow for bedroom furniture.
We would definitely have to get creative
with the furniture, I think.
Or maybe this could be the baby's room.
LJ thinks this could be a great investment property,
and I do tend to agree with him.
However, we do have to live here.
We're not just buying an investment property
to make it solely an investment property.
I think I could convince Sarah.
I think this does hit a lot of what she wants.
NARRATOR: So next, Jacki is taking Sarah and LJ
to see an apartment right in Center City
that hits most of Sarah's must-haves.
And I guarantee we probably won't blow a fuse in here
if we use two appliances at once.
But LJ is not falling so fast.
Did you even notice there's carpet in the bedroom?
NARRATOR: Philadelphia couple Sarah and LJ
need to move into a larger property
before their first baby arrives...
Yeah, that's perfect.
...and have to decide if they're going to rent or buy.
I want to buy.
I want to rent for now.
They've seen a condo at the top of their budget
and loved all of the upgrades.
It's so brand-new, nobody's even touched it.
I love that.
But it lacks a second bathroom,
and the neighborhood may be a risk to invest in.
Today they're in Center City,
right in the middle of all the best Philadelphia has to offer,
to look at a $2,450-a-month rental apartment
in a full-service high-rise.
I'm really excited to see what you guys think about this place.
I'm excited to see it.
I've passed it so many times, and I've never seen the inside.
The building has some really great amenities,
including a 24-hour concierge service.
and also a fitness center.
Ooh, I like that.
Cancel the gym membership.
Get in shape after baby.
Oh, wow.
Oh, wow.
Wow. Look at that view.
So, this unit is two bedrooms, two baths
and is a little bit over 1,000 square feet.
I like how the living space is kind of broken up.
I like the countertops.
It has some character, which you like,
yet everything's brand-new.
I love it.
And I guarantee we probably won't blow a fuse in here
if we use two appliances at once.
I do like the open space,
and I really do like
how the kitchen is separate from the living area.
If I was in the kitchen, like, cooking or doing whatever,
I could have her playing here
and kind of set her up in this area.
Spacious.
Yeah, I love the windows on each side.
It's big enough to fit all of our furniture.
We'd have our own bathroom.
We could build cabinet space up here.
Well, we're not gonna build.
You got to remember we're renting this place.
Well, we can, like, go to the store and get cabinets.
I can already tell by your face you love this place.
Did you even notice there's carpet in the bedroom?
With your allergies?
Well...
I thought that was a deal-breaker for you.
There's wood floors on most of the living space.
Carpet maybe just makes the bedroom nice and warm and cozy.
You're gonna start sneezing,
and you're gonna ask us to change the carpet,
and we don't have that ability to do that when we rent a place like that.
Oh, it's bigger than it looked from the doorway.
A lot bigger than it looks.
This would be perfect for a baby's room.
Would be. It's still got the carpeting,
but I wouldn't mind, actually, if there was carpeting.
It would only be in the baby's room.
This place is a lot more congested than Rittenhouse,
and Rittenhouse is already torture,
and I know there's no street parking here.
So, we're already above our budget,
and we're gonna have to spend at least $250 to $300 a month
to buy a parking spot.
I love this place.
It's got almost everything that I want.
LJ is gonna say that it's over our budget,
which I do agree with him,
but I also think that sometimes you make sacrifices
for the things that you want.
In my eyes, the price point
is just above what I'm comfortable with.
NARRATOR: Sarah may not be able to convince LJ
to overlook the parking and budget issues,
so Jacki is taking them to a suburban home for purchase
located in Lower Merion, about 10 miles from Center City.
It lists for $289,000,
so their mortgage would be $1,600 a month.
It's in one of the highest-rated school districts in the state.
Okay. Cool.
So, we're not in the city, obviously,
but we're only 10 miles away.
Guys, I know we're in the suburbs,
but there's so many things about this house
I really think you're gonna like.
Oh, wow.
Hardwood floors.
Very nice.
I love.
Fireplace. Very charming.
Fireplace.
Gas fireplace, too.
I love the built-in shelves.
Three bedrooms, one and a half baths,
and just shy of 1,400 square feet.
It's nice, but we're in the suburbs.
Yeah, but we're only like 10 miles away from the city.
This has got a little bit of everything.
I do see that radiator.
So, does that mean that there's no central air or heat?
JACKI: It is radiant heat.
Do we mind having that big, old thing heating up the house
with the baby running around?
A lot of natural light.
Yeah.
I like the space.
I love that we have a formal dining room.
I love that we have a big living room.
I just don't know if I'm ready to leave the city yet.
That's my only issue.
Definitely not really modern.
You'd have to change stuff.
Countertop's nice. I like that.
It's kind of like old-world charm.
I know, but charm is that word again.
It's like old, outdated, inconvenient.
It all means the same thing.
It's just charming's a nice spin.
I want to have new, modern, not charming.
This is perfect.
This is like my little sanctuary out here.
I do like the fact that there's some outside area,
and I know that we can't get that in the city.
JACKI: Now, there also is a one-car detached garage.
Oh, that's ours, as well?
Yes.
Oh, my God.
There it goes.
Oh, the whole second floor is carpeted.
What is that thing?
Oh, this is just the access panel to the plumbing.
At least there's somewhere to get access to the plumbing.
That's a positive.
So, like, bugs and critters and all kinds of things
can live in there, too.
It's charming.
Well, you don't see it.
They put a door there. It's actually kind of cool.
I can't wait till our daughter starts playing in there.
I do like how spacious the master bedroom is.
Yeah. Windows on both sides for extra light.
I do like the light.
Again, we have one of those furnace things -- the heat.
I like the window.
This is pretty cool too -- the rounded arch right here.
Tile's a little older probably than your taste, but...
I actually like the tile.
I do too a little bit.
Mint is very in right now.
Well, I didn't notice the bathroom on the main level.
JACKI: That's correct.
This is that half-bathroom,
and there's a full bathroom on the second floor.
So, me being pregnant, I'd have to either walk to the basement
or go upstairs to use the bathroom.
If you're gonna be anywhere outside the city --
We're 10 miles from the city.
It's 15 minutes back to where we used to live.
I think this could be, like, the ideal situation
for a starter home.
I never imagined myself being a suburban mom,
so I think it would be interesting
to see how I would do in an atmosphere like that.
But I just am not sold on leaving the city.
I really like living in the city.
I like the convenience of it.
NARRATOR: Next, Jacki is showing them a townhome
closer to the city center
in the neighborhood of Passyunk Square.
SARAH: Look at all this space.
The laundry room's in the bathroom.
That doesn't concern you that it's backed up to the baby's room?
I feel like the sound of the dryer
will just rock her to sleep.
Yeah, I wish you could hear yourself sometimes.
NARRATOR: Sarah and LJ are looking for a new place to live
in Philadelphia
and need to find one quickly with a baby on the way...
I've been doing my research.
I read that if there's a time to buy, it's right now.
We're not really sure where we want to end up,
so maybe just give it a year or two more.
...but can't decide if they're going to rent or buy.
So far, they've looked at one condo for purchase
that fits their needs
but may not be in a neighborhood that works for them,
one rental apartment in the center of the city
with a hefty price tag,
and another purchase LJ likes
but has Sarah thinking
she may not be ready to be a suburban mom just yet.
Today, they're heading to a $1,500-a-month rental apartment
in Passyunk Square.
It's back in the city
but not exactly the neighborhood they were hoping for.
JACKI: This is a nice, up-and-coming South Philly neighborhood.
It might be the best of both worlds for you guys.
I like it. Let's check it out.
Look at all this space.
It's the most open-concept we've seen so far.
JACKI: So, this is a two-bedroom, one-bath,
and it's a little over 1,100 square feet.
It's only $1,500 a month.
You have to agree, for city,
this is pretty open and spacious.
I agree.
Now, does this place come with a parking spot by any chance?
JACKI: So, it does not have a parking spot.
It is street parking.
However, it's much easier than Rittenhouse.
That does make me a little nervous,
just 'cause I don't know this area that well.
SARAH: The appliances are new.
Everything in the kitchen
was redone within the last few years.
I love, like, this big sink area.
Almost seems like it's too open.
If too open is our problem,
I can find stuff to buy to put in here.
We can get an island.
JACKI: In addition to the square footage,
there's also a very large, unfinished basement
you guys can use for storage.
Great.
This is nice.
Spacious. Lots of light.
I like having the windows.
I like having kind of the view.
So, we get, like, a nice street view.
I mean, it's not the view we have from our current place,
where you can actually see the park.
Right, but we're also not on a four-story walk-up.
Perfect for baby's room!
This is a pretty good size.
Yeah, and the walls are actually really pretty and painted,
so we wouldn't have to do any work.
They got wood everywhere.
Love the windows. Love the light coming in.
This would be perfect for her.
New, updated.
I like the tile.
The laundry room's in the bathroom.
I do notice that.
That doesn't concern you that it's backed up to the baby's room?
I feel like the sound of the dryer
will just rock her to sleep.
Yeah, I wish you could hear yourself sometimes.
This is the only bathroom, but at least it's nice and spacious.
I mean, this is big for a city bathroom.
I think you're forgetting
one of your deal-breakers was two bathrooms.
I love this place.
It's got wood floors throughout the entire house.
I love the fact that the kitchen is all very modern and updated.
She's overlooking some of the things we both agreed about,
as far as two bathrooms.
That was almost a deal-breaker for both of us.
NARRATOR: After seeing four locations,
Sarah and LJ have their opinions.
That place was at the top of our budget,
and there were so many things you overlooked in there.
I think that we have our entire lives to live in the suburbs.
Which will it be?
Will they rent, or will they buy?
NARRATOR: Philadelphia couple Sarah and LJ
are looking to move from their one-bedroom apartment
into a bigger space
before their first baby arrives in a couple of months.
While LJ wants to make a sound investment and purchase a home,
Sarah's isn't ready to make the long-term commitment
and hopes to rent a home in Center City.
So, will they be able to reach a compromise?
And will they rent, or will they buy?
So, we saw a lot of great places.
We have a huge decision to make,
and it's not just the two of us anymore.
It's her, too.
Location one -- a condo to buy.
LJ: It was literally brand-new. No one's lived there before.
Fully updated, high ceilings,
two bedrooms, brand-new kitchen appliances --
pretty much everything you asked us to look for.
To be at the top of our budget, it is only one bathroom.
And can I just say
that the parking is so extravagant and expensive,
and it's very important to you.
But this place is $350,000 plus the $40,000.
We may as well just say that this place
is pretty much close to $400,000.
Location two -- an apartment to rent.
Better views, two bedrooms, two full bathrooms,
washer and dryer in unit.
I know you love that place, clearly.
I saw it on your face the minute we walked in.
However, you have severe allergies.
And the minute we walked into the bedroom,
you fell in love so much with the views,
you didn't even realize we were standing on carpet.
This apartment's already above our budget,
and it doesn't come with parking,
and we're in the heart of Center City.
That's gonna cost a lot extra, as well.
Location three -- a house to buy.
Extra storage, three bedrooms.
That is in one of the best school districts in the state.
This place is the definition of a starter home.
Everything is still kind of charming in that house.
I don't think that we're ready to give up city life yet.
I think that we have our entire lives to live in the suburbs.
It's considered the suburbs.
It was less than 10 miles from our front door right now.
On a regular day, am I walking to the train station
to jump on a train to come to Center City
to get a cup of coffee at my favorite coffee store?
Probably not.
No.
I'll never see the city again.
Right. Yes, you will.
And they have coffee in the suburbs, just so you know.
I know that they have coffee in the suburbs.
I'm sure they have coffee everywhere,
but it's just not the same.
Location four -- a townhome to rent.
It's spacious, all wood floors, completely updated,
two bedrooms, a little outside space.
What do you not like about it?
Only one bathroom, and it's upstairs,
the laundry being in the bathroom
and backing up to the baby's room.
She's gonna be sleeping every two hours.
That's gonna be a major problem.
But did you see that baby's room? It was perfect.
It was even painted the right colors for us.
Doesn't come with parking, either.
Jacki told us that parking's easy there.
I have to basically take her word for it.
I mean, we don't know that area that well,
and there's no guaranteed parking spots,
and I come home at all different hours of the day.
Will they rent, or will they buy?
Location one -- a condo for purchase
in an up-and-coming neighborhood.
Location two -- a high-end apartment for rent
in the heart of Center City.
Location three -- a house for purchase
that's a great value in the suburbs.
Location four -- an affordable rental in the city
but not exactly where they'd like to be.
This is time that we could live out the rest of our two years
in the city
and get really ready for a solid investment.
So, we definitely want to rent.
It has to be the townhome in Passyunk Square.
As much as I really wanted to invest,
this is the best decision.
I think it's perfect for us right now.
I think it's spacious enough. I think it's updated enough.
I can't wait to decorate that baby's room.
It's gonna be awesome.
I love it here. I think the place is great.
We've set it up to our liking. The baby's room is ready to go.
The countdown is on. We have about 15 days.
If this keeps going, it might be happening on TV.
So anytime now.
You can run the toaster oven and also run the microwave
at the same time without blowing the fuse,
and everything works perfectly.
It's awesome.
We don't have assigned parking spots here,
but we have the zone parking, and it's pretty convenient.
During the day,
you can usually park right up in front of the house.
I knew going into this whole thing
that we were gonna end up renting.
I knew that we were not ready to buy.
It's got a nice, warm home feeling to it,
so before we buy a home, it's a nice place to be.