Concerned about building in n arlington and the "bubble".

[Anonymous]

So we are looking at a lot with a builder to build a custom home. It will probably end up all together around $1.8 or higher. The lot is in extreme north arlington near McLean. Lot is large for arlington (13,000 sf/.3 acre) and one side is parkland so you only have neighbors to your right. This seems good, as DH's commute would be good (about 1/2-1/4 what it is now), and there is lots of room to breathe, w/o having to pay even more for McLean prices. However, that is our concern. Is this way too much to be spending in n arlington? We would be staying in this house for the long run, hence why we are building, so we are less concerned with the potential for resale as for the stagnation and general decline of that area. We would certainly not be the nicest house in the neighborhood-and it backs on to a street that has multiple $2 mm houses on it-but there are still lots of tear downs around and it is decidedly not walkable to anything unless you want to get your daily exercise walking to the grocery and back.

What are your thoughts on this?

[Anonymous]

If you want a better more sure investment move to McLean.

[Anonymous]

If you want to reap a lot more equity in the near future move to a neighborhood near a silver line development.

[Anonymous]

How much sq ft? How big are the $2m houses? Assuming it's a comparable size and similar finishes I think you'll be fine.

Is it in Country Club Hills? That area is always desirable.

If you think you'll be there a while I wouldn't sweat it at all.

[Anonymous]

I wouldn't think twice about it if you can afford it. Good schools, proximity to the city, in-demand area and what sounds like a beautiful lot. Sounds great to me.

[Anonymous]

Anonymous wrote:How much sq ft? How big are the $2m houses? Assuming it's a comparable size and similar finishes I think you'll be fine.

Is it in Country Club Hills? That area is always desirable.

If you think you'll be there a while I wouldn't sweat it at all.

+1

[Anonymous]

Know nothing about this neighborhood. But, think it highly unlikely that current prices in the DC area are sustainable. So, would agree with poster that if money no object don't worry - you need a place to live that works for you. If your home is your final nest egg, upon which you will need to depend, I'd be more concerned.

[Anonymous]

People said real estate prices weren't sustainable around DC back in the 1990s and they've only gone way up. Sounds like a great location and lot, and you can build it as you like it. I would do it.

[Anonymous]

Welcome to the neighborhood! N. Arlington will always be desirable because of its location and the county's focus on maintaining the quality of the schools. $1.8 million to build new in this area is not out of the norm and I know many who have spent a lot more. If you're here for the long-term I definitely think it's worth it.

[Anonymous]

Anonymous wrote:People said real estate prices weren't sustainable around DC back in the 1990s and they've only gone way up. Sounds like a great location and lot, and you can build it as you like it. I would do it.

Now you are making stuff up. Nobody thought dc overvalued in the 90s except maybe Newt.
They said it in the 2000s too, and they were rights save for Fed intervention.

But form OP, if you are buying a place to live, and plan to live their 10+ yrs, take the plunge. If this is your nest egg and would be financially crippled if value plummets, then you might moderate your ambitious plans.

You can always rent out the house if area deteriorates and rent somewhere else. And deterioration in a 2M neighborhood probably doesn't mean gang warfare and graffiti.

[Anonymous]

New builds in Lyon Village are currently selling at $1.8-2 so the price right now seems reasonable.

That part of N.Arlington near McLean has always been an exclusive area--even during the bubble.

Real estate is a gamble. We bought a home at height of bubble on 2005 and it has appreciated $200k since then. We saw no losses just a flat year and smaller gains until recovery.

I felt lucky this go around --we bought in a lull in N Arlington late 2009 and have seen $450k appreciation so far.

If this is a 'long term' house you can ride out any dips if they do occur.

[Anonymous]

North Arlington isn't McLean , Great Falls, Bethesda or Potomac it's screwed

[Anonymous]

I just love the Arlington haters!

I've lived in Arl since 2001. There was talk of bubble then just as they are talking now. Arlington will ALWAYS be desirable given it's close proximity to Washington DC, the seat of US Government. There will be ups and downs but I seriously doubt there will be any serious plunge that all the haters and fearmongerers hope for.

Bought my house for $350K and could easily get $850K for it now.

[Anonymous]

Anonymous wrote:North Arlington isn't McLean , Great Falls, Bethesda or Potomac it's screwed

Ha, you're funny. Nobody wants long commutes anymore so close in areas will continue to do well. I don't know anyone who is in their 20s or 30s and plans to live in Great Falls or Potomac.

[Anonymous]

Anonymous wrote:

Anonymous wrote:North Arlington isn't McLean , Great Falls, Bethesda or Potomac it's screwed

Ha, you're funny. Nobody wants long commutes anymore so close in areas will continue to do well. I don't know anyone who is in their 20s or 30s and plans to live in Great Falls or Potomac.

Right cause the rich take the metro