Boss Hog,
You seem to be in very similar position as I was/am, so let's hope I can help out since I'm in Woodbridge. My short story first: my fiancée (then-gf) and I bought a double-level 3-bdrm, 2.5 bath condo last summer; my fiancée has a daughter so we have 1 child living here. We are living in the upper section/levels (3rd/4th floors; bigger than 1st/2nd floor because of no 2-car garage in the way on the 1st floor). So the upper floor plan is about 1980 sq ft, lower floor plan has only 1870 sq ft. The 2-car garage is actually 1 car for each owner (upper and lower) but with room in the driveway to park the 2nd car outside the garage door.
This community started in 2005, and has seen dramatic price drops (original upper plan was for $359K; original lower plan was for $349K). Last spring (2007), they dropped to $319K for upper; $299 for lower. I got it for $319K but I had a 5% discount from builder due to my previous condo was a failed condo conversion (in short, I had to sell previous condo in Leesburg, VA, back to the builder to return back to apartments & sell it to another company). So it was a $16K discount (bought for around $304K).
The builder was smart, building only the necessary buildings to complete the community, not all at once, so they built a few more buildings this past spring for summer. They're now selling the upper for $299K, lower for $279K. So the only equity right now I have is through the 5% downpayment on top of 5% discount I made.
We fully knew we only wanted to live in the condo 3-5 years before buying a SF home. So I had an 5/1 ARM IO loan for this condo (was on 1 income as my fiancée was finishing up her BA degree as she returned back to school to do that). We chose Woodbridge because I work for the Army (as contractor) and this location was great & has lot of value here (as you must know by now if you are going to move here).
Some people in this community are tenants, and I have been nosy about what rents/sales my community has been going this past year... rents are between 1600-1800 month; people in this community who had to sell in this down market had to compete with builder's inventory so they did sell some lower ones for $250's and upper ones for $270's-$280's. Not good for us if we wanted to move within a year or so, which isn't in the plan yet.
We probably will ride it out for a few years, although we have considered more options lately. Due to lack of kids our daughter's age in our particular condo community as well as not impressed with the particular elementary shool as well as having a neighbor below us who have very sharp ears and has complained of noise sometimes, although friendly (we are deaf, which doesn't help matters)--- all of that has made us consider maybe choosing a new townhouse in a new community few miles away as they are available in this weak market in the same price range; heck, some of them are CHEAPER than my condo! SF home prices are still a bit out of our reach right now.
Like many have said, buying is the better choice... one of our neighbors suddenly moved to Calif due to family/new job, and they easily was able to rent their condo out for a year to renters. I would consider this if we can rent this condo out if we can't sell the condo as we do somehow consider buying a townhouse this fall.
* CalvinTy
You seem to be in very similar position as I was/am, so let's hope I can help out since I'm in Woodbridge. My short story first: my fiancée (then-gf) and I bought a double-level 3-bdrm, 2.5 bath condo last summer; my fiancée has a daughter so we have 1 child living here. We are living in the upper section/levels (3rd/4th floors; bigger than 1st/2nd floor because of no 2-car garage in the way on the 1st floor). So the upper floor plan is about 1980 sq ft, lower floor plan has only 1870 sq ft. The 2-car garage is actually 1 car for each owner (upper and lower) but with room in the driveway to park the 2nd car outside the garage door.
This community started in 2005, and has seen dramatic price drops (original upper plan was for $359K; original lower plan was for $349K). Last spring (2007), they dropped to $319K for upper; $299 for lower. I got it for $319K but I had a 5% discount from builder due to my previous condo was a failed condo conversion (in short, I had to sell previous condo in Leesburg, VA, back to the builder to return back to apartments & sell it to another company). So it was a $16K discount (bought for around $304K).
The builder was smart, building only the necessary buildings to complete the community, not all at once, so they built a few more buildings this past spring for summer. They're now selling the upper for $299K, lower for $279K. So the only equity right now I have is through the 5% downpayment on top of 5% discount I made.
We fully knew we only wanted to live in the condo 3-5 years before buying a SF home. So I had an 5/1 ARM IO loan for this condo (was on 1 income as my fiancée was finishing up her BA degree as she returned back to school to do that). We chose Woodbridge because I work for the Army (as contractor) and this location was great & has lot of value here (as you must know by now if you are going to move here).
Some people in this community are tenants, and I have been nosy about what rents/sales my community has been going this past year... rents are between 1600-1800 month; people in this community who had to sell in this down market had to compete with builder's inventory so they did sell some lower ones for $250's and upper ones for $270's-$280's. Not good for us if we wanted to move within a year or so, which isn't in the plan yet.
We probably will ride it out for a few years, although we have considered more options lately. Due to lack of kids our daughter's age in our particular condo community as well as not impressed with the particular elementary shool as well as having a neighbor below us who have very sharp ears and has complained of noise sometimes, although friendly (we are deaf, which doesn't help matters)--- all of that has made us consider maybe choosing a new townhouse in a new community few miles away as they are available in this weak market in the same price range; heck, some of them are CHEAPER than my condo! SF home prices are still a bit out of our reach right now.
Like many have said, buying is the better choice... one of our neighbors suddenly moved to Calif due to family/new job, and they easily was able to rent their condo out for a year to renters. I would consider this if we can rent this condo out if we can't sell the condo as we do somehow consider buying a townhouse this fall.
* CalvinTy
Good posts by Calvin Ty and others. This issue isn't just about current prices and interest rates which use to skew toward an obvious 'buy' calculation, given the elephant subsidy of tax breaks. Things have quickly changed. How far to you have to gas your car to travel to your job, or how many square feet do you have to heat (or in the old days-cool) in the winter are new, formerly inconsequential, calculations. Although renting also tows these costs into price, given the volatility of the times I would rent (even if this choice is wrong, it probably won't be wrong by much - don't be fooled by past 30 year ownership profit calculations as if you will miss the some million dollar real estate lottery) Stick with a one or two year window where renting gives you the flexibility to react to a whole different animal where energy and US suburbia changes (if your neighbors fall below the support level, your property value will tank regardless of your job security). Buying in former times saved by financial bacon but right now I would wait if I had the option.
Boss,
I would buy something as long as you are fine renting it after you move out.
DC real estate market is beat down right now so you can get a good deal. The thing about DC is that since we have so much military personnel and government jobs etc. there is always a demand for renting and buying houses… Due to this demand long term I see the market going back up. Also will be easy for you to rent your place. That’s 2 big positives.
I can’t tell you if the market will rebound in 3 or 6 years… So that’s why I suggest if you can rent it after you leave then it should not be an issue. + You going to get a major tax break from the interest vs. paying rent.
I would buy something as long as you are fine renting it after you move out.
DC real estate market is beat down right now so you can get a good deal. The thing about DC is that since we have so much military personnel and government jobs etc. there is always a demand for renting and buying houses… Due to this demand long term I see the market going back up. Also will be easy for you to rent your place. That’s 2 big positives.
I can’t tell you if the market will rebound in 3 or 6 years… So that’s why I suggest if you can rent it after you leave then it should not be an issue. + You going to get a major tax break from the interest vs. paying rent.
I'm sold on buying and money is not the issue but the wife is concerned about our other home. She just wants to ensure if both were unoccupied at the same time we could afford both mortgages until they became occupied again. Yeah, I'm not worried about selling it after we leave. If we can't sell it and need to rent it out then so be it.
