The seven paths to DC-area home ownership

[Anonymous]

The way we did it is.... We bought on Capitol Hill nearly 20 years ago, strrrrrretching to the very top of our budget (HHI at that time about $95k) what we thought was a princely sum of $225k for a newly renovated 3 br/1.5 ba townhouse.

And then we stayed put. And HHI is now about $230k.

A lot of people thought we were crazy to buy on the Hill back then.

And now we get all sorts of personalized letters from people desperate to get inbounds at Brent, asking if we're wanting to sell.

So think about where a neighborhood might be in a few years, not just where it is now.

[Anonymous]

Anonymous wrote:The way we did it is.... We bought on Capitol Hill nearly 20 years ago, strrrrrretching to the very top of our budget (HHI at that time about $95k) what we thought was a princely sum of $225k for a newly renovated 3 br/1.5 ba townhouse.

And then we stayed put. And HHI is now about $230k.

A lot of people thought we were crazy to buy on the Hill back then.

And now we get all sorts of personalized letters from people desperate to get inbounds at Brent, asking if we're wanting to sell.

So think about where a neighborhood might be in a few years, not just where it is now.

Not sure if you want to experiment with middle or high school with your own kids

[Anonymous]

Anonymous wrote:

Not sure if you want to experiment with middle or high school with your own kids

.... which is probably what you would have said to someone on Capitol Hill about elementary school just a few years ago.

[Anonymous]

Anonymous wrote:The way we did it is.... We bought on Capitol Hill nearly 20 years ago, strrrrrretching to the very top of our budget (HHI at that time about $95k) what we thought was a princely sum of $225k for a newly renovated 3 br/1.5 ba townhouse.

And then we stayed put. And HHI is now about $230k.

A lot of people thought we were crazy to buy on the Hill back then.

And now we get all sorts of personalized letters from people desperate to get inbounds at Brent, asking if we're wanting to sell.

So think about where a neighborhood might be in a few years, not just where it is now.

Nobody knows where a given transitional neighborhood is going to be in a few years. The gamble could pay off or it could be a disaster. Just because it worked in your particular circumstances doesn't mean some kind od general lesson follows from it.

[Anonymous]

elementary schools suck in capital kill

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Not PP. I too hate every house in this area. They're old (50s-70s) and not nice. I just want a normal 3 bedroom house with an open floor plan that isn't dated looking. We have 700k to spend and it's just all bad. Depressing that all we can afford is Pimmit Hills.

Your manor awaits
http://www.redfin.com/VA/Falls-Church/7422-Howard-Ct-22043/home/9471953

You mean McManor.

For 700K and good schools/decent commute, that's a great house.

Absolutely. That doesn't change the fact that it's a McMansion.

[Anonymous]

Anonymous wrote:

Anonymous wrote:The way we did it is.... We bought on Capitol Hill nearly 20 years ago, strrrrrretching to the very top of our budget (HHI at that time about $95k) what we thought was a princely sum of $225k for a newly renovated 3 br/1.5 ba townhouse.

And then we stayed put. And HHI is now about $230k.

A lot of people thought we were crazy to buy on the Hill back then.

And now we get all sorts of personalized letters from people desperate to get inbounds at Brent, asking if we're wanting to sell.

So think about where a neighborhood might be in a few years, not just where it is now.

Nobody knows where a given transitional neighborhood is going to be in a few years. The gamble could pay off or it could be a disaster. Just because it worked in your particular circumstances doesn't mean some kind od general lesson follows from it.

Agree. Even in neighborhoods that aren't transitional, the housing market could go up or it could go down. I wouldn't buy based on where you speculate the market to go - buy based on long-term needs for you/your family.

[Anonymous]

Anonymous wrote:

Anonymous wrote:$156K is a good salary for the region. $375k on that salary is too conservative. Even with a 5% mortgage and 0 down, 30 year fixed on that is $2k a month. Add in 350 for taxes and insurance and you are looking at only 18% debt to income ratio, *FAR* shy of the 28%-33% ratio that most people subscribe to. Using 28% as a ratio, your "affordability" figure jumps to about $580k, which can buy you a nice townhome in Fairfax, or even a single family in some of the older but still nice neighborhoods like Burk.

I am not a Realtor, just someone who has done enough of these types of calculations to know when people are over/under extending themselves.

We had a lower combined salary than you and purchased a home for $537K with 3.5% down in 2009. 4.5 years later we make a tad more than you do, but have two kids in daycare now. We manage just fine. We don't have the discretionary income that others do, but as you said there has to be some wiggle room in your expectations for the DC area.

In 2009, our HHI was $120k, we bought a 1600 SF condo steps from Vienna metro for $365k with 20% down and $350/month hoa fee. Two kids and managed fine financially.

[Anonymous]

OP, if your wife works in Fairfax, and you're looking under $500, you are indeed screwed. MAYBE somewhere in SW, or Hyattsville/Cheverly (295 to 495, avoiding 66 altogether).

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Not PP. I too hate every house in this area. They're old (50s-70s) and not nice. I just want a normal 3 bedroom house with an open floor plan that isn't dated looking. We have 700k to spend and it's just all bad. Depressing that all we can afford is Pimmit Hills.

Your manor awaits
http://www.redfin.com/VA/Falls-Church/7422-Howard-Ct-22043/home/9471953

You mean McManor.

For 700K and good schools/decent commute, that's a great house.

Absolutely. That doesn't change the fact that it's a McMansion.

Not big enough to be a McMan.

[Anonymous]

Anonymous wrote:8) VA Loan

Our income is about the same as yours, and we have access to a VA loan. Thus, no down payment requirement and lower interest rates. We bought a home for around $400,000 just outside the Beltway.

This. Mid 600Ks in south east Old Town. Small, but move in condition. One full-time income, one very small part-time income, one child. Less than 25% of full-time income.

[Anonymous]

Anonymous wrote:OP here.

Question: For 8 years you rented and had a great landlord that did not increase your rent. So how much did you save?

...

It gets really old when people make choices - and complain about the consequences.

Fair question. My wife and I are in our mid-30's with Masters degrees. Basically we each spent our 20's paying down college costs on low salaries and our 30's (with better salaries) for the rest of our debts, wedding, and kid. We each have moderately-good retirement and savings going. No debt now. Very good credit scores.

To be fair, saving for a down payment has not been high on our priority list given these other considerations. Obviously, that's an issue now, but money can only be spread so thin. We don't live extravagantly if that's what your asking. No cable, limited eating out, few vacations, one car, bike to work (everyday).

You are right. Some people act like if only you were not driving a fancy car ( most of us are not driving fancy cars) you would be able to save a large down payment for an overpriced house and be able to send your kid to college at $240,000 each and have a few million in the bank for retirement. Right- pick one of the three- they will not all happen.

[Anonymous]

Anonymous wrote:

Anonymous wrote:OP here.

Question: For 8 years you rented and had a great landlord that did not increase your rent. So how much did you save?

...

It gets really old when people make choices - and complain about the consequences.

Fair question. My wife and I are in our mid-30's with Masters degrees. Basically we each spent our 20's paying down college costs on low salaries and our 30's (with better salaries) for the rest of our debts, wedding, and kid. We each have moderately-good retirement and savings going. No debt now. Very good credit scores.

To be fair, saving for a down payment has not been high on our priority list given these other considerations. Obviously, that's an issue now, but money can only be spread so thin. We don't live extravagantly if that's what your asking. No cable, limited eating out, few vacations, one car, bike to work (everyday).

You are right. Some people act like if only you were not driving a fancy car ( most of us are not driving fancy cars) you would be able to save a large down payment for an overpriced house and be able to send your kid to college at $240,000 each and have a few million in the bank for retirement. Right- pick one of the three- they will not all happen.

Aren't you just proving the PP's point? OP didn't make enough $$ to pay for everything, so he made choices. Good choices, but choices nonetheless. So, there it is.

[Anonymous]

Anonymous wrote:

Anonymous wrote:OP here.

Question: For 8 years you rented and had a great landlord that did not increase your rent. So how much did you save?

...

It gets really old when people make choices - and complain about the consequences.

Fair question. My wife and I are in our mid-30's with Masters degrees. Basically we each spent our 20's paying down college costs on low salaries and our 30's (with better salaries) for the rest of our debts, wedding, and kid. We each have moderately-good retirement and savings going. No debt now. Very good credit scores.

To be fair, saving for a down payment has not been high on our priority list given these other considerations. Obviously, that's an issue now, but money can only be spread so thin. We don't live extravagantly if that's what your asking. No cable, limited eating out, few vacations, one car, bike to work (everyday).

You are right. Some people act like if only you were not driving a fancy car ( most of us are not driving fancy cars) you would be able to save a large down payment for an overpriced house and be able to send your kid to college at $240,000 each and have a few million in the bank for retirement. Right- pick one of the three- they will not all happen.

Forget fancy cars - people are repeatedly told here to save on cable as a way to afford exorbitant housing and tuitions. Really, cable?

[Anonymous]

Anonymous wrote:Deciding you want a 15 yr mortgage for your first home is certainly your prerogative, but it might be contributing to the fact that you are renting while making a good salary.

We are 40 and don't want to be paying mortgage until we are 70. And even if we took 30yr mortgage, we would still be priced out of anything nice. And I just can't bear to work all day every day for decades in order to possess something I don't like. I would feel like one of those people who sold a house and a barn for a tulip. I am not saying it's a bubble, but for me, the value is just not there. Amazingly DH and I are on the same page there.