Finance and I are looking into house options and cannot decide. What is better in your experience?

**Money:**
My fiancé and I make a combined $160k a year before yearly bonuses (maybe $8k a piece) and currently live at home. Yes, “Stay at your parents and save money as long as you can” – is only mentally feasible for so long. That time is nearing. Both careers/company is very stable.

We have a combined $2250/mo in car payments and student loan payments. After 4-5 years the car payments will fall off and that will be down to $1250/mo.
We have a combined $35k in savings and $12k in retirement accounts
**Option 1:**
**Price:** $350k
**Pros:**
– New construction within the last year, all new appliances included except for washer/dryer.
– About 5 minute drive to work for both of us. ~2.5 miles.
– 5 year county tax abatement
– High quality finishes
**Cons:**
– Really small yard
– Do not want kids going to that school district. Would want to either move or drop kids off to go to a different school. This would be in 10 years or so.
– $100k more than option 2
– No room to build sweat-equity

**Option 2:**
**Price:** $230k
**Pros:**
– $100k less than option 1
– New roof 3 years ago
– Larger yard than option 1
– Room to build sweat-equity
– In a better school district
**Cons:**
– Built in 1920
– 20 minute/18 mile commute to work one way
– Older appliances and such than option 2
– Potential for needing updates/renovations within the first year or two
**Thoughts:**
We are somewhat torn as both options have valid pros and cons. The more expensive option would make the commute to work much nicer, as well as being ready to live with no updates in the foreseeable future with no taxes for the next 4-5 years. The cheaper option gives us some more monthly wiggle room financially but I am in the mindset that the extra wiggle room could easily get accidentally offset by unknowns with the 100 year old house. Do either of these options stick out as the clear winner?