Who's buying up those condos
Well the Post answers the question who the heck is buying those gawd awfully expensive condos. Young wipper snappers in their 20s. Kids, interest only mortgages are bad for you. They'll give you ulcers. The other problem is they seem based on an idea that you'll be able to sell at a higher price when the payments balloon. Well if EVERYBODY is selling their luxury condo at the same time, then we get what they call a "buyers market." A buyers market is what Jimbo is waiting for. Thankfully, it looks like the market is slowing down. It's been a roller coaster ride and really, if it was going to keep going I was about to get a bout of motion sickness. I look forward to my house not appreciating beyond an amount I could ever dream of borrowing.My suggestion, have you thought about maybe a house in PG County? Mt. Rainier, you got the Glut, there is that kooky traffic circle on Rt. 1, it's bike friendly (ride through it all the time) and you can get 3,500 sq feet, a yard worth mowing, and a driveway for about $400K or less. Historic Hyattsville and Historic Riverdale, west of Rt. 1, also good deals, lotta house, Franklin's nearby, and Rt. 1.
posted by Mari @ 26.10.05
8 Comments:
Hyattsville is kind of cute, and I do love my Franklins. Mmm...fish 'n chips and beer...
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Sorry but I would prefer that people initial comments. Please see my comment policy.
Jimbo, get a Hyattsville Victorian and a bunch of UM grad student roommates who do nothing but study and you'll have it made. But get something close to Rt 1 so you can drag yourself home after many beers.
You make a good point. At the rate condos are going up, it's only a matter of time before the market crashes. I had a friend who bought a condo in Foggy Bottom, back in the 80s when a similar condo boom happened. So much went up so fast that the bottom fell out of the market and his condo actually went down in value. So he was stuck for a long time with a property he could only have sold at a loss. I think he finally sold it when the current boom got going.
I was also amazed to read the Post article about who was behind the current boom. Interest only loans for hundreds of thousands of dollars at the age of 25? That's just plain crazy and clearly the action of an inexperienced buyer. If they were forced to declare bankruptcy, they'd be out of the housing market for a longtime. None of the these buyers contribute to stability either.
I totally agree...Buy a house in PG county! I just did a couple months ago, and I am very happy! Condos are already a hard re-sale, so if the market drops and you over paid, what are you gonna do? If you buy a townhouse or something bigger than a 1 bedroom condo, at least your chances of re-sale are better. And for the young buyers (like myself), isn't that what we want? I know I do.
That Post article was startling! These folks are doing the opposite of the investment mantra 'Buy low, sell high.' It's really unfortunate that the real estate agent shows his clients how to deceive lenders. I refer to the "trick" of having the parents take over the buyer's bills to make the buyer's bank account fuller than it would normally be. If the buyer has to resort to this, that's a RED FLAG that he or she can't afford a home right now.
Angela
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