Close-In vs. Further Suburbs

[Anonymous]

I'm interested in the relative investment risks of close-in suburbs versus further suburbs in the DC metro area. What are the perceived close-in boundary lines, e.g. North Arlington, Alexandria, Bethesda etc.? Which of the close-in sub-areas (e.g. Rosslyn-Ballston, Old Town) do you think have the greatest investment potential (as a secondary benefit for an owner-occupied SFH/TH)?

From discussions, it seems that those in further suburbs have lost a lot more on their investments than those who bought close-in. Given the limited real estate proximate to the corse of the DC area, I imagine these areas will continue to be in pretty high demand. Seeing that many people on this board have quite a lot of experience with real estate, thought this might make for an interesting thread.

Given that we work in DC, we're inclined to buy close-in. Nevertheless, curious to know, for those who also commute in to DC but bought further out, what where your reasons (price, schools, size, community etc.)? Are you still comfortable with your decision, given the market over the last few years ?

[Anonymous]

I think it's really only the far-flung suburbs (e.g. Woodbridge, Manassass, etc.) that saw steep decreases in value. There's a whole other category of places, like Falls Church City for example, that probably don't meet the definition of "close-in" but aren't "far-flung" either. Many of these areas have done much better in terms of holding their value.

[Anonymous]

Throughout the years, we have lived in Spring Valley, Chevy Chase DC and Chevy Chase, MD - all for the following reasons:
1) Close-in = higher property values, even in down markets.
2) Charming architecture and better quality housing
3) better schools (MoCo)= more highly educated people (MoCo and NW)...an accurate generalization.

As for VA, have never lived there but at the rule of thumb applies there as well. The closer you are to DC, the higher your property value.
If I were to make a decision to move to the farther out suburbs, it would be so that I could more house for my money, more "family style" neighborhoods.
Had I made the decision to move out to the burbs 4-5 years ago, I would be hating life right now. My property value would more certainly be way less than when I purchased it....but if I'm in for the long-haul then I'm not so worried about it.

[Anonymous]

I work in DC and live in an outer MoCo suburb. Bought because it's what we could afford in a neighborhood we liked with a house we liked. No kids at the time, but we chose our street that ends in a park thinking it would be a good fit for kids. Only issue is because of the long commute, I can't work full-time, which really isn't that big an issue because I don't want to work full-time anyway.

In terms of real estate value, our house has probably doubled in value since we bought (over a decade ago), but that wasn't what we particularly cared about. Both DH and I prefer being in the suburbs to the city (we have an SFH due to not wanting to share walls), and if DH had his way, we'd move farther out to get an even bigger lot.

[Anonymous]

I consider close in to be Arlington, some parts of McLean, falls church city, Bethesda, and chevy chase. Also probably some parts of silver spring, Kensington, takoma park, and some parts of Alexandria.

I think the biggest difference between buying in the close in suburbs with highly rated schools (my first list for the most part) and using further out is that you don't have to think too much about your investment. Those areas will always hold value, with just minor dips. If i had bought further out, I would worry much more about timing the market just right, and may have hesitated to but in recent years in a declining market.

[Anonymous]

Anonymous wrote:I think it's really only the far-flung suburbs (e.g. Woodbridge, Manassass, etc.) that saw steep decreases in value. There's a whole other category of places, like Falls Church City for example, that probably don't meet the definition of "close-in" but aren't "far-flung" either. Many of these areas have done much better in terms of holding their value.

Depends on whom you ask. Annandale? Crystal City? Wheaton? Columbia? Look, why don't you just move to Ohio.

Even most of Arlington, Alexandria, and Bethesda are tedious.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I think it's really only the far-flung suburbs (e.g. Woodbridge, Manassass, etc.) that saw steep decreases in value. There's a whole other category of places, like Falls Church City for example, that probably don't meet the definition of "close-in" but aren't "far-flung" either. Many of these areas have done much better in terms of holding their value.

Depends on whom you ask. Annandale? Crystal City? Wheaton? Columbia? Look, why don't you just move to Ohio.

Even most of Arlington, Alexandria, and Bethesda are tedious.

And of course Gaithersburg and Rockville/Rockthesda. Etc. Etc.

[Anonymous]

Use the beltway as an initial boundary. Inside beltway always better than outside beltway for commuting purposes. And then, yes, there are more desirable parts of each area. I would say a property in Rosslyn would be less desirable than one in Clarendon b/c Rosslyn still hasn't gotten it's act together even though it is closer to the city. South Arlington is still considered less desirable than north arlington even though it's inside the beltway (use route 50 in that case for figuring which side is "better"). Falls Church city ok b/c of schools but Falls Church proper not so much and so big you could be in Annandale and not know it. Can't speak to Maryland -- I'm obviously a Virginia girl!

[Anonymous]

I think houses along the 270 corridor out in the outer burbs have held their values pretty well. There are a lot of jobs along this route (the so-called tech and health corridor), and many people both live and work out here. They don't need to go into DC. If the only thing going in a particular suburb is a commuter line into DC, I think it's less likely houses will hold value. Especially if gas goes through the roof as predicted. At some point, commuting costs become completely unreasonable.

[Anonymous]

I think it's fascinating that we've all managed to avoid mention of the close-in suburbs in Prince George's County. You know, the ones so close they touch the District line.

Anyway, my sense it that in Prince George's the opposite may be true regarding value; that the further out suburbs of Greenbelt and Bowie and Mitchellville have retained value more than District Heights or Cheverly. However I don't know the facts, just the impression I get from the Post.

[Anonymous]

Anonymous wrote:Depends on whom you ask. Annandale? Crystal City? Wheaton? Columbia? Look, why don't you just move to Ohio.

Even most of Arlington, Alexandria, and Bethesda are tedious.

Here I was, thinking urban areas were more tolerant of diversity and open-mindedness. Are you people *TRYING* to make me a Republican?

[Anonymous]

Walkability and proximity to DC are all the factors that will keep your investment high.

If you can be close-in, walkable to a Metro and many amenities---shops, restaurants, bars and good schools. Your investment will be golden. These properties are hard to find and come at great cost. The inventory in our neighborhood is 1 house about every 5-6 months coming on the market...and the prices have skyrocketed and the house usu. sells in less than 3 days..often under contract the same day it comes on....OR MORE commonly....sold before it is even placed on the market.

[Anonymous]

Anonymous wrote:Walkability and proximity to DC are all the factors that will keep your investment high.

If you can be close-in, walkable to a Metro and many amenities---shops, restaurants, bars and good schools. Your investment will be golden. These properties are hard to find and come at great cost. The inventory in our neighborhood is 1 house about every 5-6 months coming on the market...and the prices have skyrocketed and the house usu. sells in less than 3 days..often under contract the same day it comes on....OR MORE commonly....sold before it is even placed on the market.

Where do you live?

[Anonymous]

Suburbs from end of the metro lines eastward keep their value better than far out suburbs.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Walkability and proximity to DC are all the factors that will keep your investment high.

If you can be close-in, walkable to a Metro and many amenities---shops, restaurants, bars and good schools. Your investment will be golden. These properties are hard to find and come at great cost. The inventory in our neighborhood is 1 house about every 5-6 months coming on the market...and the prices have skyrocketed and the house usu. sells in less than 3 days..often under contract the same day it comes on....OR MORE commonly....sold before it is even placed on the market.

Where do you live?

Clarendon.