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How much do you think you would throw away in rent while you waited to buy? How much do you think the market would continue to go up, which means you would lose how much in equity if you bought today? Do you think prices drop with your crystal ball? If that's the case, why would you want to buy as prices drop? You would put yourself in a hole...
How long will you be there?
Do you really want a condo, or would you prefer a sfh?
Do you think the market will go up or down?
If you're going to be there for years, really want a condo, and think the market is rising, then buy.
If you aren't certain about these, then rent.
Will be there at least 5 years I'm guessing, but who knows. I've moved around my whole life, so I'll go where the opportunities take me. I want a condo. I took care of a SFH in NJ plenty, which was a great experience, but I'd rather condo this time because of lower maintenance requirements, plus easier turn over or rent out if I needed to do so.
Not sure about the market, but I would imagine it could only go down from here. More a matter of when and at what rate?
Since you mention you're under contract on a home in NJ - I'm not clear if you're considering continuing with that purchase or buying a condo in NoVA? Are you canceling the contract in NJ?
FWIW, if you're asking about NoVA, the NoVA real estate market is pretty steady and I don't expect a decline within the next several years (if at all). How long do you think you'll live in NoVA?
The NoVA subform is a great resource as well. There are a couple of realtors on that forum, familiar with the NoVA market, who might be able to offer some words of wisdom as well.
Sorry I should have clarified I am under contract in NJ as the seller, not the buyer. I am just passing the point of a successful property inspection. Am making a pretty decent profit off this sale that I am deciding whether to spend on a down payment for a place in NoVA or not.
I expect I'd live in NoVA at least 5 years or so. Part of the appeal in the condo is that if I needed to, I could turn it over faster than a SFH, or possibly rent it out.
How much do you think you would throw away in rent while you waited to buy? How much do you think the market would continue to go up, which means you would lose how much in equity if you bought today? Do you think prices drop with your crystal ball? If that's the case, why would you want to buy as prices drop? You would put yourself in a hole...
I don't know how much I would throw away in rent while waiting to buy. The past year of planning my move, I'd be set on buying. But with a lot of predictions I've been seeing lately that call for a number of real estate markets to start shifting more in favor of the buyer, I've been reconsidering whether there'd be any merit to waiting a little bit in the event that prices decline in the next few years.
The thought is that as mortgage rates go up, people are less inclined to buy, and the real estate market shifts. Again, crystal ball. No idea if, when, how gradual/abrupt, etc. That's why I am here seeking opinions.
It's almost always better to buy. Renting is throwing a way money.
Unless you pay cash you either rent the home or rent the money. But then you pay the opportunity cost.
So the ultimate difference is the total cost vs the actual, realized benefit, which will vary by individual and can be difficult to ascertain.
Of this there is much agreement: Spend less than you make and save and invest the rest.
Buying increases the RE part of your portfolio; renting and investing increases the financial portion.
P.S. If there was truly only ONE clear answer to this never-ending question it would have been resolved years ago, right?
I expect I'd live in NoVA at least 5 years or so. Part of the appeal in the condo is that if I needed to, I could turn it over faster than a SFH, or possibly rent it out.
If you sell within 5 years, you'll lose money on the selling costs. I generally recommend that if anyone buys in NoVA that they plan to live here for more than five years to gain sufficient equity in the property so that you walk away with some money when you sell. Again, the RE market is pretty steady so there isn't much of a "buy low, sell high" market here.
When looking at condos, I suggest that you look at what other units in the building have sold for and how long they were on the market. Are most owner occupied or tenant occupied?
I see that your budget is $2000-$2500 inclusive of condo fees. Condo fees can be as little as few hundred dollars a month and I've seen some as much as $900/$1000 a month. So just keep that in mind.
What part(s) of NoVA are you considering? You're familiar with the area and have friends that live here, so you likely already know that the commute is one of the most important things to factor in choosing where to live.
Quick story... I know someone who bought at the peak of the market 15 years ago 5 houses down from mine. They still owe more than what I bought my house for 3 years ago at the bottom of the market. Much bigger house, larger lot, etc..... Do you want to be "that guy"?
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