Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Washington DC housing prices too high, how can singles afford a nice home, don’t want townhome, high real estate prices squeezing singles out of DC market
I agree with the previous post - as a "older and wiser" person I'll offer my advice as well. My first home I built a townhouse as well, at 28. It was a HUGE jump for me and it was scraping pennies up from the couch cushions for about 6 months. Very uncomfortable. But the advice my boss gave me at the time was "your salary will go up over time, but your mortgage will stay the same (assuming you don't do something foolish like a 1-year ARM). So, tough times now but rewards later."
He was soooo right. It was a 6-month struggle, but then I refinance when the rates went down, I had my yearly review, and bingo it got a lot easier. Did I want a single-family home? Yes, someday. But this was a beautiful townhouse I built and it made me proud to have accomplished it. When I sold it 4 years later, it allowed me to build my next home with my fiance. We never would have been able to make that move if I hadn't bought the townhouse first. My husband was divorced too and of course his house and everything in it went to the ex-wife (thank you Massachusetts law!).
So my advice would be to do what you can to get in to the market as it will help you grow in the market.
As a general rule of thumb I agree. However, when your yearly review/raise is 2 to 3% it'll take a while to pickup enough cash to not struggle but I see where you're going. I've only been here 5 months and not sure if I want to stay here or if a better job opp will open up somewhere else. For my part, my job fortunes will determine when I'll buy. I think it's like for most singles thinking about buying.
As a general rule of thumb I agree. However, when your yearly review/raise is 2 to 3% it'll take a while to pickup enough cash to not struggle but I see where you're going. I've only been here 5 months and not sure if I want to stay here or if a better job opp will open up somewhere else. For my part, my job fortunes will determine when I'll buy. I think it's like for most singles thinking about buying.
Good Points to consider. I also like the idea of renting in the area for a year to learn the lay of the land. Even if you know the area you want to live in, you will get a much better idea of specific neighborhoods or streets you might want to live in/on after being here for a year. I wouldn't worry about being priced out by renting for just a year. After living/working here for a year you will probably have a much better idea if you will be sticking around for the long term or not and will be able to make an informed decision when and if you decide to buy.
I agree that renting is a good idea. I know a lot of people like to say it's "throwing your money away" but I disagree. You get a lot of flexibility by renting - there were many times I wanted to move out of my townhouse because my neighbors were driving me insane. If I was renting, I would have been so out of there! Plus, there can be unexpected costs of owning - a stark contrast to just calling maintenance when there was a problem. I remember that the heat pump compressor had to be replaced the very first winter I was in my condo. It was $500 or $700 or something and I thought I'd just about die - that was a *fortune* to me. If you are unsure you want to stay in an area, you should for sure rent. You don't want to have to bring money with you to the closing table in order to be able to move!
I agree that renting is a good idea. I know a lot of people like to say it's "throwing your money away" but I disagree. You get a lot of flexibility by renting...
In addition to the flexibility of renting and unanticipated costs of ownership you also have homeowner's insurance, property taxes and (in most cases) mortgage interest to pay.
Real estate agents and mortgage brokers try to sell you on the "benefits" of deducting property taxes and mortgage interest but oftentimes that benefit isn't much more than the standard deduction OR you lose part of the deduction because of the alternative minimum tax!
Well, those were some thoughtful replies...THANK YOU ALL.
I did rent for the past year, however. 7 months in Raleigh, 6 months in Greensboro. I chose Raleigh hands down. So I'm back. As far as throwing away money renting, it's just that I've already done that for the past 1.1 year. OUCH.
Anyhoos, I'll reconsider the townhome thing. Perhaps an end unit, hey? I lived in a TH a few years ago and I swear I heard cabinets closing, people stomping up and down stairs, etc. It was just plain atrocious noise-wise after a while. (You know how you have a bad experience with ONE thing and it just haunts you in the future from making logical decisions? Well, that's what happened with sharing walls and common parking areas.)
How can I feel priced out here being from D.C.? Well, because $200K for a decent home (and I use that word decent gingerly) is just a stretch for me. That's all. I'll figure it out, of course. Not into living on the streets.
Well, those were some thoughtful replies...THANK YOU ALL.
I did rent for the past year, however. 7 months in Raleigh, 6 months in Greensboro. I chose Raleigh hands down. So I'm back. As far as throwing away money renting, it's just that I've already done that for the past 1.1 year. OUCH.
Anyhoos, I'll reconsider the townhome thing. Perhaps an end unit, hey? I lived in a TH a few years ago and I swear I heard cabinets closing, people stomping up and down stairs, etc. It was just plain atrocious noise-wise after a while. (You know how you have a bad experience with ONE thing and it just haunts you in the future from making logical decisions? Well, that's what happened with sharing walls and common parking areas.)
How can I feel priced out here being from D.C.? Well, because $200K for a decent home (and I use that word decent gingerly) is just a stretch for me. That's all. I'll figure it out, of course. Not into living on the streets.
As someone who lived in DC 29 years and moved down here nearly two years ago -- I find it hard to believe you are complaining about a 200k house - no matter what condition it is in. I know there was not a single detached family home sold in 2005 in Montgomery County MD that sold for less that 300k.
200k in DC will not even get you into a studio -- much less anything on a piece of land.
End unit townhomes can be pretty nice. The one I lived in was an interior unit - the advantages to that were the utilities were kept pretty low because there were only 2 exterior walls. There's tradeoffs no matter where you live - single family homes aren't perfect either. You may not hear your neighbor through the wall, but you can certainly hear their barking dog in the backyard, or look at their crummy car outside your window 24x7 (ugh).
At least here *something* is in reach - in the DC area you'd be S.O.L.
Single family homes in North Raleigh are going to be 200k plus. that's just the way it is. I also don't see the market here turning anytime soon because we keep growing. it's really all about the new jobs here. Looking at CNN as far as top areas for job growth, the triangle was number 3. That in itself will keep the current boom going.
As for myself, I will be closing on my first home in a few weeks. I decided to go with a townhome as I really don't want to manage a yard right now, and for the price I'm paying, and my location (In the middle of RTP), I got a steal. Another thing that might help you afford more house is financing. I'm using coastal federal and there current homeowners program is great (5.00% 5 year arm). That in itself allowed me to be able to afford more home then I thought.
Single family homes in North Raleigh are going to be 200k plus. that's just the way it is.
With all due respect, that statement is simply not true. I agree 100% that most SFHs in North Raleigh are in the 200+ Range, but you can find homes below that and some of them quite nice to boot. I live in a subdivision directly adjacent to Bedford in N. Raleigh and there are three homes for sale (3 bed 2 .5 bath around 1,500 sq feet) and they are all listed at or below $165K. Now maybe these homes aren't your cup of tea, and that is fine, but there are homes out there in this price range. You just need to be determined like a pig sniffing out truffles to find some of the true gems!
Good Luck!
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Thanks: I hear you all
