Would you buy a condo in Arlington (Ballston) or is the market too saturated? Need advice please!

[Anonymous]

We're thinking about buying a condo in Ballston. It's cute, a few blocks from metro and relatively new. It seems to be priced in line with the market - we've seen what other condos in the building have sold for with the same floor plan in the past six months. The problem is, we're really nervous about buying a condo. It seems like the market in Arlington on the orange line has become saturated with condos in the last few years, and my worst fear is that for some reason it goes down a lot in value and we're stuck with it forever. Does anyone have any advice? We think we'd stay in it for a few years and then ideally rent it out and move to suburbia. Any advice or thoughts on the condo market in Arlington would be greatly appreciated. Thanks!

[Anonymous]

Wouldn't buy it if you're not comfortable staying in it for at least five years or unless you're OK keeping it and renting it out when you want to upgrade to something bigger...e.g not relying on the equity for your next home purchase.

Buying in Ballston is a pretty secure purchase- the rental market there is only getting stronger, and it's proximity to DC and status as a major office hub is as solid as it gets around here...

[Anonymous]

How does your mortgage payment compare to the amount you could rent it out for? Ballston is a terrific rental market. My friend in Ballston posted a TH rental on craigslist and literally received 30 responses in a matter of hours. So odds are good that you won't have any trouble with that part of it, but I'm not sure about resale. Chances are that if it's walkable to metro, the condo fee is reasonable for the level of amenities and the building's in good shape, it'll at least hold its value, especially if you have a parking space. (important, by the way.)

[Anonymous]

I'd personally want to stay ~5 years at least if buying.

I do think Ballston will remain a very popular neighborhood though. There is more going on, planned for the future, if you look up "Ballston Business Improvement District." (County planning initiative.)

(I live in a SFH just north of Ballston, btw.)

[Anonymous]

Anonymous wrote:How does your mortgage payment compare to the amount you could rent it out for? Ballston is a terrific rental market. My friend in Ballston posted a TH rental on craigslist and literally received 30 responses in a matter of hours. So odds are good that you won't have any trouble with that part of it, but I'm not sure about resale. Chances are that if it's walkable to metro, the condo fee is reasonable for the level of amenities and the building's in good shape, it'll at least hold its value, especially if you have a parking space. (important, by the way.)

Does anyone have any thoughts on what a "reasonable" condo fee would be? In Ballston/Virginia Sq, I've seen them in the range of high mid 400s to high 500s and they all seem way too high to me. What do you even get for that money? One of the condos I recently saw had a terrible gym and a pool that was tiny. Am I being unreasonable?

[Anonymous]

Chiming in b/c I have a ton of experience in this. Usually half the condo fee actually goes to the master policy insurance in condos. You would not believe that some moron leaving a candle burning or falling asleep with cigarette in mouth can burn your whole building...so insurance costs are high.

That said, also a Realtor here. I think you're right, there are a ton of condos in Ballston, but no one has a crystal ball to see what will happen. I tend to think that that area will remain desirable for young folks and rentals, but people are right about that 5 year mark. What I can say, is write a lowball offer. LOW. Don't let your heart get set on one place, write it low and move on if they don't play negotiating games back with you. good luck!