Reply to Is home ownership out of reach for people under 30?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]A lot of people under 30 are not ready to put down those type of roots.   I think I read somewhere that the average age of first time homebuyers is 32. [/quote]

No they aren’t but it’s smart to do it if you can and build equity. You can rent it out of buy but climbing the ladder seems to be the key. I know a few who waited (late 30’s) and it’s just too hard to save 300k for a downpayment for them to stay in this area. [/quote]

When you're young you don't have to worry about school quality and can get a small place.  What I see a lot of people in DC (including my own kid) is live with your parents for 2 years after college, save up for a downpayment on a condo or townhouse.  Even if you don't want to stay in DC, you can rent it out until you're ready to sell.  Some get the townhouse and then rent out the basement in it while they live there to save more money.   [/quote]

I know more people that have lost money renting out their place in DC than made money.  Tenant laws are horrible for the owner…one bad tenant can cause you so much cost and grief.  It really isn’t for the faint of heart if you are just finding people through an agent…maybe if you rent to friends or get into the IMF/World Bank pipeline.[/quote]

+1 in theory it's a good idea but buy that condo in VA not DC[/quote]

DP. "In theory" condos are often a bad idea.  It is very easy for them to be overbuilt and they are more like a commodity than real estate. I've seen several real estate downturns where SFHs are barely affected and condo owners got hammered.  Unless you're in Manhattan, condos are a much risker investment than a SFH. [/quote]

I'm the PP, I should have said the DMV not DC--and, yes, I'd rather buy one in close in NoVa than DC proper.  I think condos are pretty safe here because even if there's a real estate downturn for a bit, there's nearly always high rental demand so you don't really have to sell and the downturn doesn't last forever. A SFH is not typically in the cards for a 20-something--out of price and often not located where they want to be.  One of my brothers bought a condo in Arlington before 2008 and then had to move for his job in 2009.  Worst case scenario. Condo tanked in price, but he was able to rent it out the whole time for more than mortgage + fees.  Came back to DMV and lived in it a few years, sold when the market was best and made a tidy profit.  And for many the rent/buy calculation almost makes it worth taking the chance.  But of course due diligence on the numbers, be prepared to be a landlord and have a plan for a real estate downturn.  Sure buying a condo is riskier than buying a SFH, but you need to compare them to renting an apartment vs buying a condo as often that's the choice being made.[/quote]

There is no way he was renting for more than mortgage and fees in 2010. He’s just blowing smoke up your a$$ to not look dumb. [/quote]

Yes, he was. I was managing it for him![/quote]

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