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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]There are some many decent properties available for under $1M. Here's an example of a small SFH in Falls Church at $729K.

https://redf.in/e9As2Q[/quote]

With a high school rated 2/10 — so you have to budget for private school. [/quote]

No you don't.

You have around 15 years from when your kid is born to build equity, grow your career, and move to a house with a better high school.

That's literally the entire concept of a starter home. [/quote]

That’s the trap around here. Places with bad school don’t match the appreciation of homes with good schools; so you actually probably fall behind compared to renting and investing the difference. Same problem with condos and townhomes.

A starter home needs to be in targeted neighborhood to work out, but those have been snapped up by builders and torn down [/quote]

You're forgetting that home ownership gives you massive leverage of your money. You can get on the property ladder with very little startup capital - an FHA loan on a $425,000 2br condo in a nice neighborhood or rowhouse EOTR only requires about $15K down but you're getting appreciation on the full $425K, not to mention a portion of your mortgage payment goes to equity.

Let's look at an example. Person A puts 3.5% down on a $425,000 home with a 6% mortgage and assuming 6% growth in home prices. In 7 years their house is worth $640K and they've got $272,000 worth of equity.

Person B puts $14,875 in the stock market at 12% growth. After 7 years they have $33,000.

Person A now has a substantial down payment on a home they can raise kids in. Person B has a nice vacation.

[/quote]
You’re making a huge assumption on home price appreciation.[/quote]

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