Quote:
Originally Posted by MediaArtist
While it's true that some markets crashed harder than others, and provide better value than other markets, DC is not a great value area based on income, rents, and median home prices.
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LOL. DC area has some really good incomes - particularly in some of the burbs. Loudoun, Fairfax, and Howard along with Falls church, VA are at the top of the highest income counties (per median) income in the country.
The biggest threat to DC is the threat of cuts in government programs... which is where most people earn their decent incomes.
I was renting in Northern VA for nearly $2000 a month for a nice 1 bedroom apartment (and my rent was increasing annually almost 7%). I bought a townhome here now and my mortgage payment is almost less than what I was paying in rent. The DC area seems to be growing at a pretty good rate since I moved here 4 years ago. I mentioned the biggest risk above; not sure what you mean by "good value"... then again DC has recently been the only area to see a stable / if not improving housing market, unlike most the other parts of the country.
Case in point: I have a friend that has a townhome in Manhattan Beach, CA and he just sold his house and was relieved to get rid of it in the market there. Another case in point: my folks own two homes in Tampa, FL and happy just to be renting the one place since they took a bath on it with the market collapse down there.
If the government starts slashing DoD jobs and other programs related to government in the DC area... then DC folks (myself included) should get concerned about the market imo.
EDIT: And why not to rent a house?
If you have a decent income, no dependents and potentially even single... you take it in the shorts come tax season. I went from owing hundreds when I was renting... to getting hundreds back (still need to adjust my withholding to balance it out). But still there are benefits to owning vs. just renting; not to mention the factor that renting you're at the mercy of the landlord not jacking your rent once you get settled in. My apartment complex was REAL good at this... they knew it was a pain to move out after a year or two of being there, so they'd hit you with a big increase and you'd have to weigh the options of constantly jumping around every couple years. This probably isn't ideal for most people and/or growing families.
Good luck OP - sorry to detract from your thread. I was 25 when I bought my first place... it's a learning experience... but read as much as you can online (trust sources), talk to friends that have bought, talk to your parents, siblings etc. It's a big deal so do your research. Getting pre-approved and finding a good real estate agent are probably good first steps in getting the ball rolling. I'd get pre-approved before seeing an agent so you have an idea of the home you could potentially get. Make an excel spreadsheet and figure out all your costs and compare it to your income. I would not trust a lender on what they approve you for. If they say you can buy a $700k home but you can only afford a $300k home with your life style... then you need to limit yourself and live within your means. Best luck