? About Real Estate in MD Suburbs (apartment, rent, how much)

[WayneNewton]

My wife and I are looking at 3 BR townhouses in Gaithersburg, Germantown, Montgomery Village, Columbia, and Annapolis between $250-$275k. If we were to purchase such a home, how much could we expect the value to go up and how long would it take to sell at the end of four years? I ask because after attaining my Ph.D., my next job may very well force us to move once again. I have seen several such homes listed with “reduced $10k” or “motivated seller”. Are townhouses a bad investment? Would I be better off investing my $50k down payment somewhere else and renting an apartment for $1200/month, or will I be able to turn a profit with such a property?

Thanks in advance!

[claremarie]

You should probably contact a realtor who works in these areas for specific information on price appreciation of townhomes, but I wouldn't bet my lifesavings that a $250K townhouse will appreciate enough in 3-4 years to offset the transactions costs. Many of these areas have a glut of moderately-priced townhouses, which accounts for the "motivated seller" and "price reduced" ads you've seen. I'd stash the cash in an index fund and rent until I knew where my next job was taking me.

[Zippy7fo]

Originally Posted by WayneNewton

My wife and I are looking at 3 BR townhouses in Gaithersburg, Germantown, Montgomery Village, Columbia, and Annapolis between $250-$275k. If we were to purchase such a home, how much could we expect the value to go up and how long would it take to sell at the end of four years? I ask because after attaining my Ph.D., my next job may very well force us to move once again. I have seen several such homes listed with “reduced $10k” or “motivated seller”. Are townhouses a bad investment? Would I be better off investing my $50k down payment somewhere else and renting an apartment for $1200/month, or will I be able to turn a profit with such a property?

Thanks in advance!

The area has a strong economy. Alot of people are sitting on the sidelines waiting to see how things shake out with the banks/builders. I would purchase the Townhouse with the expectation that your not gonna get the six figure increase in 2-3 years like you did before...