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Fairfax Underground
Welcome to Fairfax Underground, a project site designed to improve communication among residents of Fairfax County, VA. Feel free to post anything Northern Virginia residents would find interesting.
Welcome to Fairfax Underground, a project site designed to improve communication among residents of Fairfax County, VA. Feel free to post anything Northern Virginia residents would find interesting.
Was 2006 the worst year possible to purchase a home in this area?
Posted by:
Overpaid?
()
Date: November 04, 2012 11:46AM
I was doing some online research of my neighborhood and I noticed a few of my neighbors who purchased their homes in 2006 paid 200k-300k more than what their houses are worth right now.
Damn. That must really suck.
Was 2006 the worst possible year to purchase a home in this area?
Damn. That must really suck.
Was 2006 the worst possible year to purchase a home in this area?
Re: Was 2006 the worst year possible to purchase a home in this area?
Posted by:
BigK
()
Date: November 04, 2012 11:49AM
That is right about the time the Cheney/Bush administration tanked the housing industry.
Re: Was 2006 the worst year possible to purchase a home in this area?
Posted by:
2006-2008
()
Date: November 04, 2012 11:50AM
Anywhere between 2006 and 2008 would have been at the very top of the roller coaster.
Re: Was 2006 the worst year possible to purchase a home in this area?
Posted by:
Warhawk
()
Date: November 04, 2012 11:51AM
Overpaid? Wrote:
-------------------------------------------------------
> I was doing some online research of my
> neighborhood and I noticed a few of my neighbors
> who purchased their homes in 2006 paid 200k-300k
> more than what their houses are worth right now.
> Damn. That must really suck.
> Was 2006 the worst possible year to purchase a
> home in this area?
Yes. I have 3 neighbors who won't be moving anytime soon. As one of them put it: "We bought at the Mt. Everest of the market. We're screwed". Sadly, all of them moved here because of their jobs so it's not as if they had a choice.
__________________________________
That's not a ladybug, that's a cannapiller.
-------------------------------------------------------
> I was doing some online research of my
> neighborhood and I noticed a few of my neighbors
> who purchased their homes in 2006 paid 200k-300k
> more than what their houses are worth right now.
> Damn. That must really suck.
> Was 2006 the worst possible year to purchase a
> home in this area?
Yes. I have 3 neighbors who won't be moving anytime soon. As one of them put it: "We bought at the Mt. Everest of the market. We're screwed". Sadly, all of them moved here because of their jobs so it's not as if they had a choice.
__________________________________
That's not a ladybug, that's a cannapiller.
Re: Was 2006 the worst year possible to purchase a home in this area?
Posted by:
Ura Tard
()
Date: November 04, 2012 11:52AM
BigK Wrote:
-------------------------------------------------------
> That is right about the time the Cheney/Bush
> administration tanked the housing industry.
That was back before you were transgendered right?
-------------------------------------------------------
> That is right about the time the Cheney/Bush
> administration tanked the housing industry.
That was back before you were transgendered right?
Re: Was 2006 the worst year possible to purchase a home in this area?
Posted by:
'06 Buyer
()
Date: November 04, 2012 11:53AM
Yes.
^
Attachments:
^
Attachments:
Re: Was 2006 the worst year possible to purchase a home in this area?
Posted by:
Lester
()
Date: November 04, 2012 11:57AM
2006 was when most new loans stopped requiring principal payments and credible financial statements. Interest-only, pick-a-pay, and liar loans.
Re: Was 2006 the worst year possible to purchase a home in this area?
Posted by:
Debt Consolidation
()
Date: November 04, 2012 12:08PM
Lester Wrote:
-------------------------------------------------------
> 2006 was when most new loans stopped requiring
> principal payments and credible financial
> statements. Interest-only, pick-a-pay, and liar
> loans.
The debt-consolidation loans started back in 2002 or 2003, setting up a lot of families for serious trouble when house prices began to fall.
People took their unsecured credit card debts and rolled them up into the equity of their homes. They didn't seem to care that they were trading signature loans for a lower monthly payment with their house as collateral.
So, when the bubble popped, these people were sitting on ARMs and HELOCs that they couldn't refinance, and lost their homes.
They spent their equity buying escalades and Hummer 2s.
I like the way Fox News convinced their viewers that it was really just blacks and hispanics who screwed the market by taking mortgages fraudulently, though.
Classic Ed Bernays regimentation of the masses.
-------------------------------------------------------
> 2006 was when most new loans stopped requiring
> principal payments and credible financial
> statements. Interest-only, pick-a-pay, and liar
> loans.
The debt-consolidation loans started back in 2002 or 2003, setting up a lot of families for serious trouble when house prices began to fall.
People took their unsecured credit card debts and rolled them up into the equity of their homes. They didn't seem to care that they were trading signature loans for a lower monthly payment with their house as collateral.
So, when the bubble popped, these people were sitting on ARMs and HELOCs that they couldn't refinance, and lost their homes.
They spent their equity buying escalades and Hummer 2s.
I like the way Fox News convinced their viewers that it was really just blacks and hispanics who screwed the market by taking mortgages fraudulently, though.
Classic Ed Bernays regimentation of the masses.
Re: Was 2006 the worst year possible to purchase a home in this area?
Posted by:
Ninja Loan?
()
Date: November 04, 2012 12:09PM
Lester Wrote:
-------------------------------------------------------
> 2006 was when most new loans stopped requiring
> principal payments and credible financial
> statements. Interest-only, pick-a-pay, and liar
> loans.
-------------------------------------------------------
> 2006 was when most new loans stopped requiring
> principal payments and credible financial
> statements. Interest-only, pick-a-pay, and liar
> loans.
Ninja Loans?
Re: Was 2006 the worst year possible to purchase a home in this area?
Posted by:
your friendly appraiser
()
Date: November 04, 2012 08:46PM
2007 was probably the worst year to buy, early in 2007. I was doing REO appraisals (appraisals for banks on property they had taken back from the home owners) in the latter half of 2007 and I hadn't done any before that point for 4 years. By 2008 things had started to slip quickly and 2009 things were ugly. 2010 saw things settle and in 2011 things started to move back up. This year the median price of a home in DC surpassed the 2007 median price so the market could start to pick up quickly or if congress and da presidents don't come to an agreement on the budget and the government starts cancelling contracts...well DC Metro could experience something like Vegas.
Re: Was 2006 the worst year possible to purchase a home in this area?
Posted by:
2007 Buyer
()
Date: November 04, 2012 10:12PM
I'm totally in the shitter. I was renting an awesome apartment at Archstone Columbia Crossing on Columbia Pike in Arlington. I had moved there in 2001 just after 9/11 and the rent was $1200/month for a 2 bedroom, balcony, underground parking, outdoor pool and shuttle to Pentagon City Metro. 6 years later the rent had escalated to $1900/month. When I asked for an explanation for the increases the property manager shrugged and said, "We're next door to the Pentagon...the Jihadists want to kill every last one of us...we house the people who are trying to stop them. And there's LOTS of people trying to stop them."
So, I bought a 2 bedroom hi-rise condo 5 miles west in Alexandria. My 2 fixed rate mortgages are $1,500 per month but...the fucking HOA fees have escalated from $100 a month in 2007 to now $490 a month. Additionally, we've had 2 special assessments in 5 years. I bought at $250K. I've talked to 3 different real estate agents in the last 6 months and they've all said I'd be lucky to get $200K. HOA fees are projected to increase 4.5% per year over the next 5 years and no buyer will even consider looking at it unless all of the special assessments are paid in full by closing by me. I'll never get out of this place. I'm totally in the shitter.
So, I bought a 2 bedroom hi-rise condo 5 miles west in Alexandria. My 2 fixed rate mortgages are $1,500 per month but...the fucking HOA fees have escalated from $100 a month in 2007 to now $490 a month. Additionally, we've had 2 special assessments in 5 years. I bought at $250K. I've talked to 3 different real estate agents in the last 6 months and they've all said I'd be lucky to get $200K. HOA fees are projected to increase 4.5% per year over the next 5 years and no buyer will even consider looking at it unless all of the special assessments are paid in full by closing by me. I'll never get out of this place. I'm totally in the shitter.
Re: Was 2006 the worst year possible to purchase a home in this area?
Posted by:
I LOVE NINJAS
()
Date: November 04, 2012 11:46PM
I LOVE NINJAS
Re: Was 2006 the worst year possible to purchase a home in this area?
Posted by:
Condos are bad investments
()
Date: November 05, 2012 12:11AM
2007 Buyer Wrote:
-------------------------------------------------------
> So, I bought a 2 bedroom hi-rise condo 5 miles
> west in Alexandria. My 2 fixed rate mortgages are
> $1,500 per month but...the fucking HOA fees have
> escalated from $100 a month in 2007 to now $490 a
> month. Additionally, we've had 2 special
> assessments in 5 years. I bought at $250K. I've
> talked to 3 different real estate agents in the
> last 6 months and they've all said I'd be lucky to
> get $200K. HOA fees are projected to increase 4.5%
> per year over the next 5 years and no buyer will
> even consider looking at it unless all of the
> special assessments are paid in full by closing by
> me. I'll never get out of this place. I'm totally
> in the shitter.
Condos are the worst investment. They are the first to lose their value in an economic downturn because they are so cheap that all your neighbors are probably just hanging by a thread already. Then you've got the condo fees -- all those "amenities" that you may or may not even use cost money for upkeep. The special assessments were probably for snow removal that exceeded the budget, or major repairs to elevators, repaving parking areas, etc.
Townhouses are better. Single family homes are the best.
The best thing you can do is save and save until you can afford to buy a townhouse or SFH, then rent the condo for as close to your mortgage and condo fee costs as possible. Maybe even come out a few hundred a month positive.
in 10 years, the condo may appreciate enough to where you can get out right-side up.
I almost bought a condo as an investment in 2004. I'm glad I decided to renovate another property instead. The money I would have put down on the condo has paid off more as an improvement to the other property.
-------------------------------------------------------
> So, I bought a 2 bedroom hi-rise condo 5 miles
> west in Alexandria. My 2 fixed rate mortgages are
> $1,500 per month but...the fucking HOA fees have
> escalated from $100 a month in 2007 to now $490 a
> month. Additionally, we've had 2 special
> assessments in 5 years. I bought at $250K. I've
> talked to 3 different real estate agents in the
> last 6 months and they've all said I'd be lucky to
> get $200K. HOA fees are projected to increase 4.5%
> per year over the next 5 years and no buyer will
> even consider looking at it unless all of the
> special assessments are paid in full by closing by
> me. I'll never get out of this place. I'm totally
> in the shitter.
Condos are the worst investment. They are the first to lose their value in an economic downturn because they are so cheap that all your neighbors are probably just hanging by a thread already. Then you've got the condo fees -- all those "amenities" that you may or may not even use cost money for upkeep. The special assessments were probably for snow removal that exceeded the budget, or major repairs to elevators, repaving parking areas, etc.
Townhouses are better. Single family homes are the best.
The best thing you can do is save and save until you can afford to buy a townhouse or SFH, then rent the condo for as close to your mortgage and condo fee costs as possible. Maybe even come out a few hundred a month positive.
in 10 years, the condo may appreciate enough to where you can get out right-side up.
I almost bought a condo as an investment in 2004. I'm glad I decided to renovate another property instead. The money I would have put down on the condo has paid off more as an improvement to the other property.