I see prices dropping in the Northern VA market and it would seem an excellent time to buy a house or condo. I won't get it at the bottom but I suspect it will be a good price. My problem is that every financial calculation I have read about seems to indicate that I should keep renting. I figure I would hold the property for five years.
2006-12-29 19:49:42 · 5 answers · asked by WallBaker 5 in Business & Finance ➔ Renting & Real Estate
Crime rate are the highest in the country there. I would not live there.
2006-12-29 19:55:48 · answer #1 · answered by Jason 5 · 0⤊ 2⤋
Well I'm sure there are some good neighborhoods but mostly DC is Da' hood. Meaning high crime and that's not good for investment typically.
Crime aside DC I think saw a lot of price spikes in Real Estate over the last couple of years and unless it's fallen much the market is still high. Having said all that a condo might make sense but I don't know enough about your personal finances. If you have a tax pro they can help give you this answer (buy vs. rent). to figure what you can afford you need to take what you are paying for rent and then what you would pay every month say for a condo that you like. the condo should cost more so...
have your tax person determine what you will save on your witholding and Federal (and Stae if applicable) income taxes due to your now paying property taxes and also that you will be getting the mortgage interest income tax reductions on the federal and possibly state returns. you might be surprised to find out that when the smoke clears you may be paying equal to or less in actual dollars OUT of your pocket to buy vs. rent. Of course you need to figure out with a condo all the association fees are and things like that. With a house make sure you ask abotu local tax rates adn any other association fees or stuff like that.
Good luck.
2006-12-30 04:03:41 · answer #2 · answered by Jon C 2 · 0⤊ 0⤋
I laugh after seeing all the nay saying, gloom and doom responders to your question. Worry warts... don't be one them, what a way crappy way to live.
If your only objective is to make money, then do not buy. It sounds like you aren't a speculative investor, and that you want a nice place to live in for the next 5 years. Do it. The metro dc area will always be strong and will always appreciate over time.
5 years is plenty of time for the market to go down some more but eventually come back up and hopefully over the price you paid. But if it doesn't... who cares? Get the tax write off, get the peace of mind, get the real estate, get the pride, get the girl, get a life...
2006-12-30 13:38:58 · answer #3 · answered by Anonymous · 0⤊ 0⤋
i wouldn't buy right now if you are going to hold for only five years, prices could still be dropping (or flat) then. If you want to hold for 10+ years and you really like the place, then i would consider it, even if it doesn't look like a good short term investment.
2006-12-30 04:02:15 · answer #4 · answered by Stanley 3 · 0⤊ 1⤋
The cycle is funny, but you may be able to buy now and get a spike in price by July or August, when you can sell.
2006-12-30 03:58:01 · answer #5 · answered by Anonymous · 0⤊ 0⤋