Anonymous
06/13/2022 09:26
Subject: If you bought 2005-2007 and got hit, tell me your story, location and age
Anonymous wrote:We are currently selling a TH in Loudoun (10 mins from Reston) we bought in 2007 for $450k. Lived there til we bought a SFH nearby in 2013. Decided to rent it out since we couldn’t break even then. It’s now worth $700k but that still isn’t a great return. $250k gain over 15 years, from which we have to pay realtors, closing costs, and cap gains tax because it was a rental and not a primary. The TH neighbor a few doors down bought in 2016 for the same $450k and sold this year for the same $700k. Now THEY got a good return!
You also got rent money for years.
Anonymous
06/13/2022 09:24
Subject: If you bought 2005-2007 and got hit, tell me your story, location and age
Same small condo costs three times more the 2005 price.
Anonymous
06/13/2022 09:24
Subject: If you bought 2005-2007 and got hit, tell me your story, location and age
I used to live in NJ. I sold my house there in 2008.
The family that bought it put in tons of improvements and sold it in 2014 for $5K less than they paid me.
The family that bought it put in tons of improvements and sold it in 2014 for $5K less than they paid me.
Anonymous
06/13/2022 09:23
Subject: If you bought 2005-2007 and got hit, tell me your story, location and age
Anonymous wrote:Bought a 1br condo in 2005
Saw the market dip, bought a 4 br house and rented out the condo waiting for prices to go up to sell it
In 2012 saw the market go down and bought a new construction and rented out the 4 br house waiting for prices to go up to sell
2016 sold the 4br house for basically break even, sold the condo for 25% less than we paid.
I check the condo building and prices are still lat, the 4br house has appreciated about 20%
These are homes in Tysons inside the beltway with good schools
It worked out in long term and eventually we saw significant appreciation so no regrets.
Anonymous
06/13/2022 08:58
Subject: If you bought 2005-2007 and got hit, tell me your story, location and age
We are currently selling a TH in Loudoun (10 mins from Reston) we bought in 2007 for $450k. Lived there til we bought a SFH nearby in 2013. Decided to rent it out since we couldn’t break even then. It’s now worth $700k but that still isn’t a great return. $250k gain over 15 years, from which we have to pay realtors, closing costs, and cap gains tax because it was a rental and not a primary. The TH neighbor a few doors down bought in 2016 for the same $450k and sold this year for the same $700k. Now THEY got a good return!
Anonymous
06/13/2022 08:47
Subject: If you bought 2005-2007 and got hit, tell me your story, location and age
Anonymous wrote:Anonymous wrote:That’s so surprising to me. We bought a row house in DC for 420k in late 2006. We have done some work on it—probably 150k in upgrades—and it’s worth 900 to one million now. Of course, we haven’t actually tried to sell it! I thought most of the DC area was similar.
When you look at the price rise from 420 to 900, there are two primary drivers — the broader market and DC gentrification. In this case DC gentrification did the heavy lifting and this example doesn’t really reflect the broader market.
I'm not sure that's true. Arlington saw a similar gain with no gentrification. My guess is that gain isn't evenly spread. There was a drop somewhere between 2006 and 2010, but then rapid appreciation from 2010-2016. Then things seemed to slow a bit it was a slower climb.
We bought near H St NE in 2010 for $420k and sold in 2016 for $900k (having invested about $15k in renovations plus lots of sweat equity). That gain was a combo of market recovery and gentrification. We then bought in Arlington then for $930k and could sell now for around $1.4m (having invested about $200k in renos), which is zero gentrification and all market shift.
Anonymous
06/13/2022 08:36
Subject: If you bought 2005-2007 and got hit, tell me your story, location and age
Anonymous wrote:Anonymous wrote:The folks we know who bought at the height of the market in 2006 and ended up having to sell were genx (mostly younger ones).
Lots of millennials in their early 20s got approved for stated income loans
We're eldest millennials (Jan 1981) and were the first of our peers to buy in 2010 (which turned out to be fabulous timing). There were probably a few millennials who bough sooner, but I think the housing price timing was the worst for younger GenX. They were the ones stretching for family homes in the 2004-2008 years.
Anonymous
06/13/2022 08:27
Subject: If you bought 2005-2007 and got hit, tell me your story, location and age
Anonymous wrote:The folks we know who bought at the height of the market in 2006 and ended up having to sell were genx (mostly younger ones).
Lots of millennials in their early 20s got approved for stated income loans
Anonymous
06/13/2022 08:24
Subject: If you bought 2005-2007 and got hit, tell me your story, location and age
Anonymous wrote:That’s so surprising to me. We bought a row house in DC for 420k in late 2006. We have done some work on it—probably 150k in upgrades—and it’s worth 900 to one million now. Of course, we haven’t actually tried to sell it! I thought most of the DC area was similar.
When you look at the price rise from 420 to 900, there are two primary drivers — the broader market and DC gentrification. In this case DC gentrification did the heavy lifting and this example doesn’t really reflect the broader market.
Anonymous
06/13/2022 08:09
Subject: If you bought 2005-2007 and got hit, tell me your story, location and age
It really is about good timing, huh?
We bought our current house at the end of the time when the foreclosures and short sales were clearing the market (2011). We saw a lot of those. Wound up buying a regular sale in need of updates. Got about halfway through what we planned to do when we basically ran out of extra money. Then the pandemic happened and rates hit rock bottom and we refinanced in order to finish. We were definitely lucky to be able to do so.
That said, we can’t move up anytime soon because we can’t afford an even larger mortgage. I think we’ll stay where we are until our second graduates HS and then cash out
We bought our current house at the end of the time when the foreclosures and short sales were clearing the market (2011). We saw a lot of those. Wound up buying a regular sale in need of updates. Got about halfway through what we planned to do when we basically ran out of extra money. Then the pandemic happened and rates hit rock bottom and we refinanced in order to finish. We were definitely lucky to be able to do so.
That said, we can’t move up anytime soon because we can’t afford an even larger mortgage. I think we’ll stay where we are until our second graduates HS and then cash out
Anonymous
06/13/2022 07:49
Subject: Re:If you bought 2005-2007 and got hit, tell me your story, location and age
Anonymous wrote:We weren't in the DC area, but bought in the Denver 'burbs in 2006. Definitely near the top of a very hot local market. It was our first house, we were in our late 20s and we paid $290K. Within a year, IIRC, and definitely by 2008, we were underwater.
Since we'd bought something we could conservatively afford on one salary, with a conventional mortgage (not an ARM) and knew we would be in the house long-term, about the only practical impact was that we appealed our next tax valuation to be more in line with the actual market prices. During the recovery, we refinanced when conditions were favorable and the house only became more affordable over time. We bought as DINKs, stayed there 11 years, had two kids and as our kids were hitting the ages when we really wanted more space, we sold in 2017 for about $450K and moved to the DC area (NoVa). Zillow tells me that similar houses in our old neighborhood are selling for like $625K now.
We are in our mid-40s now.
Yes, a market crash is only a problem if you have to sell.
Anonymous
06/13/2022 07:48
Subject: If you bought 2005-2007 and got hit, tell me your story, location and age
The folks we know who bought at the height of the market in 2006 and ended up having to sell were genx (mostly younger ones).
Anonymous
06/13/2022 07:42
Subject: Re:If you bought 2005-2007 and got hit, tell me your story, location and age
We weren't in the DC area, but bought in the Denver 'burbs in 2006. Definitely near the top of a very hot local market. It was our first house, we were in our late 20s and we paid $290K. Within a year, IIRC, and definitely by 2008, we were underwater.
Since we'd bought something we could conservatively afford on one salary, with a conventional mortgage (not an ARM) and knew we would be in the house long-term, about the only practical impact was that we appealed our next tax valuation to be more in line with the actual market prices. During the recovery, we refinanced when conditions were favorable and the house only became more affordable over time. We bought as DINKs, stayed there 11 years, had two kids and as our kids were hitting the ages when we really wanted more space, we sold in 2017 for about $450K and moved to the DC area (NoVa). Zillow tells me that similar houses in our old neighborhood are selling for like $625K now.
We are in our mid-40s now.
Since we'd bought something we could conservatively afford on one salary, with a conventional mortgage (not an ARM) and knew we would be in the house long-term, about the only practical impact was that we appealed our next tax valuation to be more in line with the actual market prices. During the recovery, we refinanced when conditions were favorable and the house only became more affordable over time. We bought as DINKs, stayed there 11 years, had two kids and as our kids were hitting the ages when we really wanted more space, we sold in 2017 for about $450K and moved to the DC area (NoVa). Zillow tells me that similar houses in our old neighborhood are selling for like $625K now.
We are in our mid-40s now.
Anonymous
06/13/2022 07:39
Subject: If you bought 2005-2007 and got hit, tell me your story, location and age
Bought for $350k in outer suburb in MD in 2005, went underwater for a long time. Finally trying to sell it now listed at $370k but missed the frenzy waiting for a renter to move out. Hope the damn thing sells. Elder Millennial/end of GenX.
Anonymous
06/13/2022 07:18
Subject: If you bought 2005-2007 and got hit, tell me your story, location and age
Why do they keep building these stupid condos in Tysons