Is buying a one-bedroom condo ever a good idea?

[Anonymous]

Anonymous wrote:If buying is cheaper than renting and staying in the same
Place for ten years buy .

This. Are you living there?

[Anonymous]

Anonymous wrote:What the HOA? That would be a major issue for me, most hoas in DC are steep.

This. It can become a huge liability and this is often what makes it difficult to sell, IMO.

There are a boatload of condos for sale in my SIL’s close in MoCo condo building and I think it really has to do with the crazy condo fees. I know that’s not DC, but it’s not too far from dC.

[Anonymous]

You could consider having a roommate and getting a two-bedroom, two-bath place. You can qualify for a higher mortgage based on the expected rental income. Eventually you may no longer need to have the roommate.

[Anonymous]

Never considered that my condo will appreciate. It had already appreciated in 2006 and stayed at that price. I bought it for living since houses and townhouses are not for me.
OP, $600k is too much for a 1-bedroom. Surely there are cheaper places.

[Anonymous]

Mine was a great purchase. Turned a 6 figure profit over 5 years of ownership. My friends who bought townhouses in the burbs haven't seen anything close to that appreciation.

[Anonymous]

I have a one bedroom condo in a close suburb 10min from Metro. I love it and there will always be people that want a condo for business in the city. If you can swing it buy a 2 bedroom but I've never been sorry for my one bedroom.

[Anonymous]

Anonymous wrote:

Anonymous wrote:What the HOA? That would be a major issue for me, most hoas in DC are steep.

This. It can become a huge liability and this is often what makes it difficult to sell, IMO.

There are a boatload of condos for sale in my SIL’s close in MoCo condo building and I think it really has to do with the crazy condo fees. I know that’s not DC, but it’s not too far from dC.

That is a totally different market than central DC. In some ways,we'll never know if SFHs appreciate faster than condos in the downtown market -because there aren't any, it's all multiunit buildings.

Certainly, there are many residential neighborhoods of townhouses and SFHs that have appreciated poorly relative to downtown DC condos , just as there are those that went up a ton.

OP, as a longtime condo owner, my experience is that best benchmarks for appreciation are how the condos in your target building are doing relative to others in your neighborhood, whether the amenities are ones that are desirable. (Elevators and staffed front desks automatically make for big fees - but are generally popular) , and how trendy the neighborhood is. There are slightly better prices in Dupont and Cleveland Park, these days, because Logan and H street are trendy. I will say brand-new construction in areas with a lot of building seems like it has softer appreciation for a while because you're stuck trying to see slightly dated units relative to brand new stuff.

[Anonymous]

If we all had crystal balls, we'd all be rich.

Historically 1bd condos in DC have only done so-so, since supply isn't constrained. If prices go up, new construction pops up in the new 'hot' neighborhood. Very few places, with the exception of Chinatown and parts of lower Dupont are fully built out. Supply seems to catch up with demand. This is especially true as most 1bd buyers do not care about schools/are amenable to semi-gentrified areas. Taste in amenities changes over time. (Roof decks are now a thing, will they be in 20 years?) There are just two limiting factors, the availability of lots and the cost of construction. The market reflect this. Now if things change, then prices will go up/down.

This is not true for SFH/town-homes. Buyers tend to care about schools. School gentrification is much much slower than property gentrification. This is why WTOP/Cap Hill has such a price premium. Plus, there just aren't that many lots where it is feasible to build or add to supply within DC limits. But this advantage may now be *fully priced* into the value - so it isn't clear that there will be more future growth. Some of these properties gained value since lots of millennials decided they wanted to live in the city rather than in a suburbs, but the boomer sellers didn't know that when they bought 30+ years ago. My neighborhood WOTP is now full of dual income 30-somethings with younger kids.

Keep in mind, many SFH are only worth 1M+ due to the price of the underlying land, NOT the actual property. (There is no way a physical row house/duplex in Glover/AU is worth 1M; rather, each row house is worth 300-500K, with the rest being the value of the land they sit on) The market reflect this. Now if things change, then prices will go up/down.

Again, lots of things are already priced in to home/condo costs. The market reflect this. Now if things change, then prices will go up/down. It is hard to predict the future.

[Anonymous]

What timeline are you looking to see appreciation on? Its a different story if its because you know you'll likely be moving in 3 years,VS its a long term home but don't want an albatross.

That said, I think the market for $600k one bedrooms might be small, and if you shoot for more like the $450k mark, there may be a wider pool of buyers.

[Anonymous]

Anonymous wrote:What timeline are you looking to see appreciation on? Its a different story if its because you know you'll likely be moving in 3 years,VS its a long term home but don't want an albatross.

That said, I think the market for $600k one bedrooms might be small, and if you shoot for more like the $450k mark, there may be a wider pool of buyers.

$600K for a DC one-bedroom is standard price for new buildings these days. In 10 years, I think it'll be $1M.

https://www.redfin.com/DC/Washington/810-O-St-NW-20001/unit-308/home/167906767

[Anonymous]

you can absolutely find a 2br for under $600k! Looking at redfin for 2brs with condo fees under $600/month yielded options in Glover Park, Shaw, Dupont, Adams Morgan, Columbia Heights, Hill East, and more. https://www.redfin.com/city/12839/DC/Washington-DC/filter/property-type=condo,max-price=600k,min-beds=2,hoa=600,viewport=38.8895:38.85696:-76.98031:-77.03601

I think the issue with selling a $600k 1br is that it will be a very expensive 1br, not the fact that it's a 1br.

I would only buy it if the condo rules were very generous about allowing the condo to be rented out. Then if you couldn't sell it but you wanted to move, you'd at least have the option of renting it out.

[Anonymous]

Anonymous wrote:you can absolutely find a 2br for under $600k! Looking at redfin for 2brs with condo fees under $600/month yielded options in Glover Park, Shaw, Dupont, Adams Morgan, Columbia Heights, Hill East, and more. https://www.redfin.com/city/12839/DC/Washington-DC/filter/property-type=condo,max-price=600k,min-beds=2,hoa=600,viewport=38.8895:38.85696:-76.98031:-77.03601

I think the issue with selling a $600k 1br is that it will be a very expensive 1br, not the fact that it's a 1br.

I would only buy it if the condo rules were very generous about allowing the condo to be rented out. Then if you couldn't sell it but you wanted to move, you'd at least have the option of renting it out.

Redo that search with ground floor / basement units filtered out. There is no 2br/2ba in that price range in those neighborhoods that is above ground and has low fees. If you want a second bathroom (a requirement, imo, for even considering a roommate situation), w/d in unit, the ability to control your own heat/air, and other "luxuries" that are now considered baseline necessities, you're looking at $800k for a 2/2 and $600k for 1br.

More problematic than buying a one bedroom condo would be buying a ground floor unit of any size. No amount of liar lens photography and "your own private terrace!" can make up for the degraded security, unavoidable water/mold problems, and increased pests.

[Anonymous]

Anonymous wrote:

Anonymous wrote:you can absolutely find a 2br for under $600k! Looking at redfin for 2brs with condo fees under $600/month yielded options in Glover Park, Shaw, Dupont, Adams Morgan, Columbia Heights, Hill East, and more. https://www.redfin.com/city/12839/DC/Washington-DC/filter/property-type=condo,max-price=600k,min-beds=2,hoa=600,viewport=38.8895:38.85696:-76.98031:-77.03601

I think the issue with selling a $600k 1br is that it will be a very expensive 1br, not the fact that it's a 1br.

I would only buy it if the condo rules were very generous about allowing the condo to be rented out. Then if you couldn't sell it but you wanted to move, you'd at least have the option of renting it out.

Redo that search with ground floor / basement units filtered out. There is no 2br/2ba in that price range in those neighborhoods that is above ground and has low fees. If you want a second bathroom (a requirement, imo, for even considering a roommate situation), w/d in unit, the ability to control your own heat/air, and other "luxuries" that are now considered baseline necessities, you're looking at $800k for a 2/2 and $600k for 1br.

More problematic than buying a one bedroom condo would be buying a ground floor unit of any size. No amount of liar lens photography and "your own private terrace!" can make up for the degraded security, unavoidable water/mold problems, and increased pests.

Agree with this PP.

Except maybe they could do this one in Southern Hill East. It's 2 beds, 1.5 baths, brand new and a good building. I don't know the area but there's a Harris Teeter nearby and a metro stop...

https://www.redfin.com/DC/Washington/1345-K-St-SE-20003/unit-5/home/167115641

[Anonymous]

I wouldn't

Land appreciates, not buildings

[Anonymous]

Anonymous wrote:you can absolutely find a 2br for under $600k! Looking at redfin for 2brs with condo fees under $600/month yielded options in Glover Park, Shaw, Dupont, Adams Morgan, Columbia Heights, Hill East, and more. https://www.redfin.com/city/12839/DC/Washington-DC/filter/property-type=condo,max-price=600k,min-beds=2,hoa=600,viewport=38.8895:38.85696:-76.98031:-77.03601

I think the issue with selling a $600k 1br is that it will be a very expensive 1br, not the fact that it's a 1br.

I would only buy it if the condo rules were very generous about allowing the condo to be rented out. Then if you couldn't sell it but you wanted to move, you'd at least have the option of renting it out.

Agree with the last sentence. Make sure you are able to rent the unit to others. Thats another reason why I'm put off on condo buying, the board can change the rules on that any time they want.