Is there going to be a spring market this year?

[Anonymous]

Anonymous wrote:

Anonymous wrote:
Things have gotten ridiculously pricey in Arlington where we’re searching. We’re looking for a small condo for our just out of college kid up to 450K. We want a two bed so they can rent one room out if they want. It’s not looking too good so far


Out of curiosity with how sluggish condo sales/values have been, what makes you want to buy your kid a condo instead of pay their rent or investing that money in an index fund for their benefit?

I ask because in most Arlington condo buildings right now the monthly PITI for buying is quite a bit more expensive than renting an identical unit in the building, sometimes more than $1,000 difference…plus exposure to rising HOA fees and special assessments…plus the fact that condo values are largely flat lately…plus rents are fairly stable lately…

Are you assuming significant appreciation?

My question is: how do you know your kid who is just out of college will stay in the same job in this area for enough time to make buying a condo worth it?

+1. Another issue is that people right out of college like to move around even within the DMV. Wouldn't surprise me if they want to move into DC at some point. But maybe mommy and daddy paying the rent will be enough to keep them in Arlington.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Things have gotten ridiculously pricey in Arlington where we’re searching. We’re looking for a small condo for our just out of college kid up to 450K. We want a two bed so they can rent one room out if they want. It’s not looking too good so far

Out of curiosity with how sluggish condo sales/values have been, what makes you want to buy your kid a condo instead of pay their rent or investing that money in an index fund for their benefit?

I ask because in most Arlington condo buildings right now the monthly PITI for buying is quite a bit more expensive than renting an identical unit in the building, sometimes more than $1,000 difference…plus exposure to rising HOA fees and special assessments…plus the fact that condo values are largely flat lately…plus rents are fairly stable lately…

Are you assuming significant appreciation?

They need a place to live and they want to live close by. We will be paying cash. If they take a job someplace else/travel, they can rent it out. We’ve owned condos before, we know how to invest in the right property

[Anonymous]

Anonymous wrote:Super slow compared to 2024 when we were in the market. Homes are just sitting with many price drops.

It’s at a snail’s pace at the moment. New listings are how to come by

[Anonymous]

Right but that's slow listed inventory, not bidding.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Super slow compared to 2024 when we were in the market. Homes are just sitting with many price drops.

It’s at a snail’s pace at the moment. New listings are how to come by

It was posted earlier than January is the slowest month in the DMV. It's like this every year. Be patient. This is the biggest purchase of your life. May to July is the best time.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Super slow compared to 2024 when we were in the market. Homes are just sitting with many price drops.

It’s at a snail’s pace at the moment. New listings are how to come by

It was posted earlier than January is the slowest month in the DMV. It's like this every year. Be patient. This is the biggest purchase of your life. May to July is the best time.

Not really. January-April 2024 was very brisk.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Super slow compared to 2024 when we were in the market. Homes are just sitting with many price drops.

It’s at a snail’s pace at the moment. New listings are how to come by

It was posted earlier than January is the slowest month in the DMV. It's like this every year. Be patient. This is the biggest purchase of your life. May to July is the best time.

Not really. January-April 2024 was very brisk.

Did you look at the data?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Super slow compared to 2024 when we were in the market. Homes are just sitting with many price drops.

It’s at a snail’s pace at the moment. New listings are how to come by

It was posted earlier than January is the slowest month in the DMV. It's like this every year. Be patient. This is the biggest purchase of your life. May to July is the best time.

Not really. January-April 2024 was very brisk.

Did you look at the data?

What data? I was in the market in 2024 (started looking in January, bought in April) and I see what’s happening in the same area now. That’s my data.

[Anonymous]

Anonymous wrote:Things have gotten ridiculously pricey in Arlington where we’re searching. We’re looking for a small condo for our just out of college kid up to 450K. We want a two bed so they can rent one room out if they want. It’s not looking too good so far

We looked into this and decided not to pull the trigger. My thinking was that if I buy the condo now and gift it to them later, the IRS treats it as a lifetime gift, and they inherit my original purchase price as their tax basis. When they eventually sell, that lower basis can translate into a much larger capital-gains tax than if the condo had been bought in their own name at today’s price—or inherited with a step-up later.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Things have gotten ridiculously pricey in Arlington where we’re searching. We’re looking for a small condo for our just out of college kid up to 450K. We want a two bed so they can rent one room out if they want. It’s not looking too good so far

We looked into this and decided not to pull the trigger. My thinking was that if I buy the condo now and gift it to them later, the IRS treats it as a lifetime gift, and they inherit my original purchase price as their tax basis. When they eventually sell, that lower basis can translate into a much larger capital-gains tax than if the condo had been bought in their own name at today’s price—or inherited with a step-up later.

So what do you suggest? Our kid needs a place to live and we’d like to help them buy a place. Our home is big enough but since they’re deep into romantic relationships, they need to be in their own home😂.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Things have gotten ridiculously pricey in Arlington where we’re searching. We’re looking for a small condo for our just out of college kid up to 450K. We want a two bed so they can rent one room out if they want. It’s not looking too good so far

We looked into this and decided not to pull the trigger. My thinking was that if I buy the condo now and gift it to them later, the IRS treats it as a lifetime gift, and they inherit my original purchase price as their tax basis. When they eventually sell, that lower basis can translate into a much larger capital-gains tax than if the condo had been bought in their own name at today’s price—or inherited with a step-up later.

So what do you suggest? Our kid needs a place to live and we’d like to help them buy a place. Our home is big enough but since they’re deep into romantic relationships, they need to be in their own home😂.

Tell your kid and their significant other to rent a house together maybe? Spending $450,000 to not deal with kid’s SO is crazy work.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Things have gotten ridiculously pricey in Arlington where we’re searching. We’re looking for a small condo for our just out of college kid up to 450K. We want a two bed so they can rent one room out if they want. It’s not looking too good so far

We looked into this and decided not to pull the trigger. My thinking was that if I buy the condo now and gift it to them later, the IRS treats it as a lifetime gift, and they inherit my original purchase price as their tax basis. When they eventually sell, that lower basis can translate into a much larger capital-gains tax than if the condo had been bought in their own name at today’s price—or inherited with a step-up later.

So what do you suggest? Our kid needs a place to live and we’d like to help them buy a place. Our home is big enough but since they’re deep into romantic relationships, they need to be in their own home😂.

Teach them about how renting works.

[Anonymous]

We are putting a house on the market soon. Probably late February or early march. Our realtor says there is low inventory in our area (nova, inside beltway, walk to metro), especially at our (relatively lower) price point and plenty of buyers. We are pricing it a bit lower than we would have a year ago (we had had conversations with our realtor about selling back then, but allowed our tenants to stay another year) — probably 1.1M instead of 1.2.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Things have gotten ridiculously pricey in Arlington where we’re searching. We’re looking for a small condo for our just out of college kid up to 450K. We want a two bed so they can rent one room out if they want. It’s not looking too good so far

We looked into this and decided not to pull the trigger. My thinking was that if I buy the condo now and gift it to them later, the IRS treats it as a lifetime gift, and they inherit my original purchase price as their tax basis. When they eventually sell, that lower basis can translate into a much larger capital-gains tax than if the condo had been bought in their own name at today’s price—or inherited with a step-up later.

So what do you suggest? Our kid needs a place to live and we’d like to help them buy a place. Our home is big enough but since they’re deep into romantic relationships, they need to be in their own home😂.

Ever heard of something called renting?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Things have gotten ridiculously pricey in Arlington where we’re searching. We’re looking for a small condo for our just out of college kid up to 450K. We want a two bed so they can rent one room out if they want. It’s not looking too good so far

We looked into this and decided not to pull the trigger. My thinking was that if I buy the condo now and gift it to them later, the IRS treats it as a lifetime gift, and they inherit my original purchase price as their tax basis. When they eventually sell, that lower basis can translate into a much larger capital-gains tax than if the condo had been bought in their own name at today’s price—or inherited with a step-up later.

So what do you suggest? Our kid needs a place to live and we’d like to help them buy a place. Our home is big enough but since they’re deep into romantic relationships, they need to be in their own home😂.

Ever heard of something called renting?

Yes, I have, but we’re not going that route.