Is there going to be a spring market this year?

[Anonymous]

Anonymous wrote:

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.

Ok. Then go the route with the significant tax implications.

[Anonymous]

Anonymous wrote:

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.

I don’t think you’ve done the math of rent vs buy when it comes to a condo these days (it’s not like it used to be). If you buy them an Arlington condo in cash, it will barely appreciate over time and the HOA fees will rise, plus maintenance costs plus rare special assessments. Just put the $450k in an index fund and that will pay for rent and give them a much better investment.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I don't think so, unless you have a very desirable house. A lot of the military families will be priced out and living on post or in post-allotted housing or rent from other military families that own houses, which is going to slow sales.

What specific area of the DMV does any of this relate? Up here in CC MD we have literally zero military families.

NoVA has alot of military families, between the Pentagon, Ft Belvoir, and NGB. Many of them get orders in January/February, and they move May through July, usually trying to time it to have their kids settled for the next school year. The spring market is real and active in this area.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

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.

I don’t think you’ve done the math of rent vs buy when it comes to a condo these days (it’s not like it used to be). If you buy them an Arlington condo in cash, it will barely appreciate over time and the HOA fees will rise, plus maintenance costs plus rare special assessments. Just put the $450k in an index fund and that will pay for rent and give them a much better investment.

+1

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I don't think so, unless you have a very desirable house. A lot of the military families will be priced out and living on post or in post-allotted housing or rent from other military families that own houses, which is going to slow sales.

What specific area of the DMV does any of this relate? Up here in CC MD we have literally zero military families.

NoVA has alot of military families, between the Pentagon, Ft Belvoir, and NGB. Many of them get orders in January/February, and they move May through July, usually trying to time it to have their kids settled for the next school year. The spring market is real and active in this area.

.

DC and PG County have a lot too between Pentagon, JBAB, and AAFB.