My husband and I are having a little trouble making a decision so any input is much appreciated! Here is the background/story:

H and I are trying to figure out if we should downsize. It would be from a more expensive rental (duplex with two car garage, large laundry room, nice area) to an apartment complex (parking lot, shared laundry facilities, not so nice area.) He is enlisted military and I am a full time student and we are young so obviously we don't have a very high income.

If we moved to the apartment we would save about 13% of our income. We are debt free, but don't have very much in savings and we would like to start a family in a few years.

Would you make the move?

Thanks so much-- Ann

in a heart beat!

I would worry a bit if your husband stays gone alot. Safety should be a concern if he's not around (you don't sound stretched too thin financially). Moving expenses are also something to consider... Is this alternative place in the not so nice area the only alternative?

Have you considered buying something so that your rent money isn't going toward someone else's mortgage payment? Or do frequent moves prevent that?

What about student housing?

I would stay if your housing expenses (rent + utilities) are under 25%-30% of your take home pay. If not, I agree with pp, I'd move in a heart beat.

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Couldn't say it any better!

Depends on what you mean by "not so nice". If you mean nightly drive by shootings in gang territory "not so nice", I'd say no way. If you mean just not as nice as where you are now, and some crime (hopefully non-violent), well...that's true anywhere. Then I'd say sure, go for it. Just make sure you weigh all the pros and cons before making a move to save some money. Some things are more important that saving a buck (especially safety).

My university is really far away from where my husband works. And no one should buy a house if they aren't going to stay there for some time-- especially in this economy. On top of that we live in Southern California and people who bring in even 100K have trouble buying a home

My DH is gone...a lot which is one of our biggest concerns, but right now our housing (plus utilities) is 44% of our income
Thanks though!

It is kind of hard to tell how safe a place is here. It is so populated here in Southern California and crime is just sort of everywhere. It doesn't *seem* to be bad...but for a woman anywhere in a large city I just don't know!

Personally, I wouldn't move. As enlisted military, you're going to move anyway. Between moving costs and the disruption to your life, a move won't be worth it because you'll do it again soon anyway.

Let's do the math. Let's say your rent is $3000 a month (you did say you lived in So Ca). If that dropped by a quarter, your new rent would be $2250 a month. The utility savings would be very small. That gives you $750 extra in cash flow a month. Multiply that by 12 months, results in a savings of $9000 a year. Let's say you stay for two more years. That would be a savings of $18,000.

How much interest can you earn on 18,000 in the next 5 years - maybe the time before you buy a house and start a family? At an optimistic 4% interest rate, you'd end up with approx $21,000. Subtract moving costs and you end up with $20,000.

Granted, that seems like a nice sum of money. I agree. However, those savings are rarely realized. Your lifestyle will change with the move and you may, due to safety issues and quality of life issues, decide to not save that entire amount - or not be able to. I know one of my adult DD's had her new car vandalized several times because the place where she rented didn't have garages, for instance. An immediate effect may be a rise in your auto insurance premiums. And, of course, you don't know if your new rent will remain stable. Low cost rentals rarely stay low cost if they can raise their rents to compete with the market. As more and more people lose their homes to foreclosure - or have to move for jobs but can't afford to purchase - rentals will begin to feel inflationary pressures.

My advice is to stay with what you know. If your current landlord tries to raise the rent, you will have your decision made for you. Until then, look to save money in other ways.

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my suggestion would be make a good ole pros and cons list with money figures involved and see wich one outweighs the other.

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