Your morning commute~

[Mike]

As far as real estate investment, it is a cyclical market. It will go up again, you can quote me on that. I'll likely be out of the business by then, but I can guarantee that within the next few years..barring some huge economic disaster...house prices will increase again. This happened in the 80s when interest rates were like 19% and again in the early 90s.

sure they'll increase again, but who's to say they're done decreasing? until my peers can afford homes in reasonable areas, the market is inflated and has nowhere to go but down. people retire, people die, people leave areas... if there is a giant chunk of the age bracket unable to buy these homes, it doesn't work.

[.RJ]

To which you replied that I was somehow wrong in what I wanted.

The fantasy land/crusty 40 y/o comments you make it sound like you think living in the city is somehow an inferior arrangement.

[Mike]

good read: <!-- m --><a class="postlink" href="http://millionairemommynextdoor.blogspot.com/2007/10/irrational-housing-prices-steal-early.html">http://millionairemommynextdoor.blogspo ... early.html</a><!-- m -->

lost opportunity cost is what deersty is missing IMO.

[HAULN-SS]

sure they'll increase again, but who's to say they're done decreasing? until my peers can afford homes in reasonable areas, the market is inflated and has nowhere to go but down. people retire, people die, people leave areas... if there is a giant chunk of the age bracket unable to buy these homes, it doesn't work.

Particularly given the fact that NOVA had net job creation of close to 21,000 YOY (per last weeks BLS stats)
i don't see that happening. I mean, they may decrease some more, but unless you're looking to buy REOs, I wouldn't expect half off for anything.

[.paul]

what is affordable?

[WRXtranceformed]

sure they'll increase again, but who's to say they're done decreasing? until my peers can afford homes in reasonable areas, the market is inflated and has nowhere to go but down. people retire, people die, people leave areas... if there is a giant chunk of the age bracket unable to buy these homes, it doesn't work.

I agree with you, it's really frustrating for the majority of the people out there. And now, honestly, it has much less to do with the building industry and pricing as it does with the current state of the mortgage industry. Big lenders are going under, you have to have damn near perfect credit under full documentation loans to get reasonable rates, and jumbo loan rates are so high right now. The building industry, and resale market, are simply lowering prices to compensate at this point.

For most young, single people in this area, owning a home is simply not possible. What do you think was one of my biggest motivators to move? I set a personal goal for myself to have purchased a home by October of this year, and unless I magically started making 3 times what I make now or I got married, it wasn't possible here. And frankly, to me there are not enough valid reasons to have to pay a premium to live in this area.

Now, if you go in with someone else (wife) it's much more attainable. Two people even with somewhat low paying jobs can afford ~$417k (max conforming limit) home as long as their expenses are low. I know because I just sold one to a super nice young couple with a combined income of about $95-100k.

[WRXtranceformed]

what is affordable?

Depends on your income, your assets, your monthly financial obligations, and your credit history =p

[HAULN-SS]

"I think the lesson here is diversification - whether you are into RE, stocks or whatever - don't put everything into one house, one stock etc."

is a quote from someone on that page you linked. I don't know if you realize this, but I am 24. I am probably making somewhere near the lowest I will make for the forseeable future. I can start investing heavily in the next 3 - 4 years or so. My eggs will not be all in one basket. I am not going to sell this house, and again buy the most house I can absolutely afford. From here on out, any extra income I get can go into investing, all the while beating inflation on my house. lets be honest, if shit hit the fan right now, the economy tanked, my house value went to shit, I could foreclose with zero consequences except bad credit for a few years, and a few lost mortgage payments. I have no wife, no kids, no dependents.

[Mike]

when caitlin begins working in demember, we'll have a combined income of 120k... i wouldn't want to think about affording a house even on that

luckily, there are people out there that think it's a great idea, try it, fail, and send the market even further down the tubes

[.RJ]

lost opportunity cost is what deersty is missing IMO.

Not everyone buys a house as a financial investment - but nice assumption. Stretching your budget to afford a piece of property is a bad call no matter what the expected return is. If you're in your 20's and are already maxing out IRA/401k/etc contributions AND can comfortably buy a house - there's no reason not to.

[Mike]

lost opportunity cost is what deersty is missing IMO.

Not everyone buys a house as a financial investment - but nice assumption. Stretching your budget to afford a piece of property is a bad call no matter what the expected return is. If you're in your 20's and are already maxing out IRA/401k/etc contributions AND can comfortably buy a house - there's no reason not to.

1. Right, some people buy houses in places that have value to them/their life. Bumfuck, WV has no qualities. Don't say Deersty sees them...
2. I'm guessing his contributions are not maxed.

[Apoc]

I've spent quite a bit of time in DC, seeing as how I've grown up here - including some seedy spots from time to time when I was less smart. Never been mugged/shot/etc and never once felt like I was in some sort of danger. But I've been held up at gunpoint twice in the middle of vienna - cookie cutter suburbia. Go figure.

I wouldn't consider Vienna cookie cutter suburbia. It's more like urban sprawl.

[HAULN-SS]

1) fresh air, seeing the stars at night, no crowds
2) wrong

[.RJ]

1. Right, some people buy houses in places that have value to them/their life. Bumfuck, WV has no qualities. Don't say Deersty sees them...

Enough with the mikey rules already. We get it, you dont like Bumfuck WV.

2. I'm guessing his contributions are not maxed.

I wasnt talking about Deersty. Notice the generalizations there? You're reading into only what you want to see... not everyone wants what Mikey wants.

I wouldn't consider Vienna cookie cutter suburbia.

Then what is?

[Mike]

1) fresh air, seeing the stars at night, no crowds
2) wrong

Seeing the stars is the only thing I'll give you that is not available elsewhere, fag.

[HAULN-SS]

haha :cheers:

[WRXtranceformed]

when caitlin begins working in demember, we'll have a combined income of 120k... i wouldn't want to think about affording a house even on that

luckily, there are people out there that think it's a great idea, try it, fail, and send the market even further down the tubes

That's a pretty bleak outlook on it =P $120k combined is more than enough to comfortably afford a reasonably nice place around here, you just can't blow all of your spare cash on busted piles and track bikes :lol: This is commonplace and the majority of the people in that situation are happy and comfortable where they are... they don't have collection agencies banging on their door or local Sherrifs coming to evict them after foreclosure :lol:

It's the people who dealt with the subprime loans and investors of multiple houses or people who REALLY overstretch themselves or lied about how much money they make that are causing many of the foreclosures. The subprime stuff has mostly weeded out now anyway.

[Apoc]

I wouldn't consider Vienna cookie cutter suburbia.

Then what is?

Read the second part of the line you quoted dummy.

[.RJ]

I wouldn't consider Vienna cookie cutter suburbia.

Then what is?

Read the second part of the line you quoted dummy.

No, what is cookie cutter suburbia, if it isnt Vienna. Dummy!

[Mike]

when caitlin begins working in demember, we'll have a combined income of 120k... i wouldn't want to think about affording a house even on that

luckily, there are people out there that think it's a great idea, try it, fail, and send the market even further down the tubes

That's a pretty bleak outlook on it =P $120k combined is more than enough to comfortably afford a reasonably nice place around here, you just can't blow all of your spare cash on busted piles and track bikes :lol: This is commonplace and the majority of the people in that situation are happy and comfortable where they are... they don't have collection agencies banging on their door or local Sherrifs coming to evict them after foreclosure :lol:

It's the people who dealt with the subprime loans and investors of multiple houses or people who REALLY overstretch themselves or lied about how much money they make that are causing many of the foreclosures. The subprime stuff has mostly weeded out now anyway.

Yeah, I suppose it won't be too bad. Currently, with her part-time wages, we're looking at probably 95k between the two of us, which is living pretty nicely. Anything added on to that is just gravy, eh?