laura888
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Wed Dec-22-04 02:40 PM
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A good time to sell a rental property? |
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I have a small condo in Arlington, VA (right outside DC) that I'm thinking of selling, while the market is still hot.
Frankly, I'm worried that the economy is going to tank.
I want to pay off some loans and perhaps invest the rest in Euros.
thoughts?
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Zuni
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Wed Dec-22-04 02:43 PM
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1. Real estate prices in DC are going straight up right now |
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Edited on Wed Dec-22-04 02:45 PM by Zuni
I would say its up to you, because real estate in DC (Arlington is practically DC)going up still, but I have no idea when the bottom is going to drop out of the "Bush Bubble"
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MADem
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Wed Dec-22-04 02:54 PM
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5. My sense is that it will probably flatten down, but not pop |
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...in the metro DC area, at least not as hard as other areas. You've got so many government employees, and BushCo seems to be bloating the size of the government, not downsizing it. Anyone know what the foreclosure rate is in the area? Higher or lower than national average?? I know the "outlier" counties, like Fauquier, are growing like crazy to accomodate the increase in population.
Because of the highway project, the taxes are going straight up, too.
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shoelace414
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Wed Dec-22-04 02:47 PM
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2. timing the market is impossiable |
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do whatever will help you out now.
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sbj405
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Wed Dec-22-04 02:48 PM
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3. While prices in DC are rising, also keep in mind the # of condos going in |
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I think there's a limit to the number of people that want that type of housing. Not to mention, your condo will be looked at as "old." Though some parts of Arlington are appreciating faster than others.
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laura888
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Wed Dec-22-04 02:49 PM
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4. Cherrydale neighborhood, and built in 1953 |
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so - yes, its definitely "old"
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spooky3
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Wed Dec-22-04 02:56 PM
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6. there are many things to consider... |
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I'm also an Arlington resident--here are some things I would think about:
Do you have a financial adviser? If so, what does s/he say about your total situation? Is it a 1 bedroom or efficiency, vs. larger? If 2 BR or more, I might be more inclined to hold onto it as they are easier to sell, traditionally. Have you made money by renting it, or is it basically break even? do you have good tenants in there now, or are they a hassle? Are you going to need to make a lot of repairs in the next few years? That would be a royal and expensive pain if the housing market tanks and you can't get a good tenant. Do you have big other debts that have high and rising interest rates? Is the money put to better use there--or in improving the house you now live in?
Your condo is in a great location. IMHO, the outlying areas will be hurt more in a downturn because we will continue to have an awful traffic problem. And I think that there is still a good chance that rents and housing prices will keep going up as long as interest rates stay pretty low. There are many two career couples around here who can afford expensive housing, sad for those of us not in that situation.
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laura888
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Wed Dec-22-04 03:22 PM
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9. thanks for your list of things to consider |
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its a 1 bedroom, that WILL need some major repairs soon.
My aim is to sell it, and possibly pay down the place I'm currently living in, and possibly fix it up as well.
The lack of a mortgage payment is highly attractive.
Where do you live in Arlington?
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spooky3
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Wed Dec-22-04 05:34 PM
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10. Crystal City area--yes, I can understand why you'd want to |
MADem
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Wed Dec-22-04 02:57 PM
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That architecture still has those elements that people who were born in, or alive in, the 50's think is "outdated," but the younger generation looks on with admiration--it reminds them of the Jetsons, Leave it to Beaver, all the shows they watched after school. It has a quirky comfort level for them. And the younger set will be buying condos, so it may work out well for you!
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Goathead
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Wed Dec-22-04 05:42 PM
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11. My sister lived in Cherrydale |
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or used to, now she lives off of Lee highway a bit further down near the Harris Teeter. Is 'Crisp and Juicy' still in business? They had the most awesome rotisserie chicken with dipping sauce!
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Zuni
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Wed Dec-22-04 03:21 PM
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8. Any condo that close to DC will sell |
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It is hard to find good housing a stone's throw away from DC nowadays
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amazona
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Wed Dec-22-04 06:10 PM
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12. how much will you net? |
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I don't need a literal answer to the question, this is something you need to investigate for yourself. I don't see anything wrong with profit-taking if you need to pay off loans anyway.
Being debt-free is good if you expect deflation or if you have reason to fear interruption of income. Debt is actually to your advantage if you expect inflation and you have a secure income. Since I can't tell the future, I can't tell you the best move to make.
As for the euro, Currency speculation is seldom a good idea for amateurs in my view. I think we missed the boat on the euro anyway. Should have bought it when it was first issued. The dollar has already fallen 60 percent against the euro from its high, so you'd be getting a terrible price. We want to buy low, sell high, not the opposite. But this is just one person's opinion. I suppose the dollar could fall further, but it doesn't seem to have much further to go if you ask me.
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