There was an article about real estate bubble in Washington post yesterday. It’s a whole big hoopla all over the country but DC area is specifically under observation due to the boom, job growth, and so many and so many new residents added to the local demographic in matter of few months.
So while I had made up my mind about DC and had gotten over the commitment phobias, had started looking for the house, I got tons and tons of good, bad, and the really confusing advices from everyone.
This area is really good for buying properties. I work in a title company in the northern virginia area and our firm does over 100 purchases every month.
Dont buy roman, save all your money in little bags and put under your mattress, you will need it to make a quick get away when the men in black come to get you.
Cost of Living Adjustment in Salary calculators.. like say u wanna do a move from Philly to DC and want to see how much of an incrase in income u’d need.. plug in Own and Rent and if the disparity is huge.. it’s an indicator that prices of Real Estate are inflated in that region.
btw just buy some Euros/Oil Stock and sit on them for like a couple of years till things fix themself up… ya phir Gawadar main condo khareed loa..
Roman, the prices in DC have never gone down for the last 30 years or, so I think its a good investment. But I am really not comfortable with Gwader, DC. How about Lahore, VA. I hope you will like it.
If it is a bubble, prices will go down 5% to 15% over next 1-3 years and then stabalize and start moving back in about 5 years.
If it is not a bubble, then you will feel like Bubble (Singh) for not buying now.
Real estate can be a bad investment only if you plan to sell it in few years are caught in the phase described in first sentence above.
If you are goign to keep it, have children, then see them grow, then get them married and at age 67 retire and play with grand kids in the back yard....then someone give me an argument why one should not buy? now or whenever?
Have anyone ever lost money in real estate after holding it minimum 10 years? I have not.
in most places in India house/real estate prices have gone up more than 24% last year....and they still use men to drive carts instead of horses
when I parked my car in front of $500,000 home in Amritsar(mind you it a village you can buy a lot in $500K)...my foot fell in a ditch full of water when I stepped out.
^ one reason is the the return on capital in the long term. Capital marktets have outperformed real estate re: returns in teh last 70 yrs. that is why short term flows from capital markets into real estate markets contribute to bubbles.
I dont think roman is buying the house as an investment. When buying your first house one should not consider if the market is in a bubble or not. If you can afford it buy it.
