I vote for no 1. The exterior is prettier, the interior sounds as if it has more character, and from what you say the changes you'd make are easy and cosmetic (getting rid of the astroturf) rather than major (replacing the pink bathroom). I also have a bias towards shabby, unpretentious, mixed-class neighbourhoods (providing they have the basics like a few decent bars, restaurants and a local cinema, anyway!). I'd hate to live in a community that's only made up of middle class people. It would be so dull and... unreal.