Home Buying in 20194>Question Details

Rachel, Home Buyer in 20194

Is this a good time to buy an investment condo in Reston, VA: will hold on to it for 5 years?

Asked by Rachel, 20194 Mon Jun 6, 2011

I am not at all understanding whether to buy a condo(300K) in reston or herndon....
I have seen townhomes in ashburn for the same price(300K).....
can anyone plz give me an advise

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Not sure if anyone is still wondering, but yes. Housing prices have increased amazingly! I bought my condo in 09 and am going to be putting it on the market within the month. The current prices are about 125k more than what I paid. Reston is definitely a great investment
0 votes Thank Flag Link Thu Jun 12, 2014
When deciding where to purchase an income producing property, you may not want to just limit yourself to Reston. First decide the type of return you would like to see on your investment, include allowances for vacancies and repairs. I would suggest researching a little more before settling on a specific location. You want to invest where you can get the most bang for your buck!
0 votes Thank Flag Link Tue Feb 12, 2013
I would say yes if you're going to rent this property out as an investment. We're noticing that the demand for rentals in the DC area is at an all time high.
0 votes Thank Flag Link Sun Sep 11, 2011
Rachel, you should have your agent pull data for the last few years so you can see trend data on not only the percentage of decline comparable between Ashburn, Herndon and Reston as well as the swing back up in the last year or so.
0 votes Thank Flag Link Tue Aug 23, 2011
If your agent can provide you with a Competitive Market Analysis which gives you good reason to believe that you are buying at a good value now, it is highly likely that a five year time horizon will give you a good return. The experts seem to be pretty much in agreement that we are about halfway through the housing mess, and that housing prices will be back up to pre-meltdown levels in about five years. They are also predicting housing shortages all over the country. the DC area has not been as hard hit as most of the rest of the country, so your chances seem good.

No investment comes with a guaranteed return. If you will be able to rent the unit for enough to carry it, or a positive cash flow, you will be providing yourself with a very improtant cushion.
0 votes Thank Flag Link Mon Jun 13, 2011
While you might turn to Realtor for advise on where to invest, it is unethical and unwise for any of us to guarantee future profits. One important thing I'd like to know is if you plan to live in what you are buying and are talking about an 'investment' simply in terms of appreciation or if you are planning to rent the property for positive cash flow. If you are simply looking for positive cash flow from a rental, I can think of at least a dozen places I would take $300,000 first. However, if it is for a primary residence, and you are hoping for appreciation where you want to live and what you want type of house you want to live in should be the primary factors in your decision.

When you figure those two out, look for that type of property and scrutinize the prices of the ones you are looking at versus recent sales. Hindsight is always 20/20, none of us can predict where the market will lead in terms of appreciation/depreciation over 5 years, the best you can do is make sure you are getting a good deal in TODAY's market because that is all we know for certain.
Web Reference: http://www.craigfauver.com
0 votes Thank Flag Link Sun Jun 12, 2011
Rachel I'm a local Realtor in Ashburn Area. Instead of Condo , Townhouse is a better investment. And you can get townhouse close to this price. Because of METRO STATION this is the Best time to invest in Ashburn. If you want more information , call me at this # 703-587-1710.
0 votes Thank Flag Link Mon Jun 6, 2011
This is totally the right time to invest, and waiting five years will give a very good return on the investment, so feel safe in buying! Good Luck and Best Wishes on your endeavor!
0 votes Thank Flag Link Mon Jun 6, 2011
If you are looking to invest $300k in a condo, I am not are I would choose a place like Reston. I would look one of three places. First, I would consider some of the hard hit areas. Prince Georges county comes to mind as a place where condo prices are pretty depressed from short sales and foreclosures. In 5 years some of these trends could change, and in the meantime there are a lot of renters that can't buy a house because their credit has been ruined from short sales.

The second place I would consider are some of the places where BRAC is having an impact, such as Ft. Belvoir or Ft. Meade. They have a lot of transient families that are often looking to rent.

I actually own an investment property in Foggy Bottom and find it to be goldmine. Student housing in DC is a premium and schools like GW, AU, and Georgetown all have students with deep pockets (or at least parents with deep pockets). You can get top dollar for your rentals and the DC condo market is a little stronger than the suburbs.
0 votes Thank Flag Link Mon Jun 6, 2011
The answer is a definite "maybe."

Sorry about that.

I probably wouldn't do that. I was involved in some condos in Reston a few years ago, and I'm not too optimistic about prices recovering soon.

If you're willing to hold for perhaps longer than 5 years and are willing to focus on cash flow, what you can do is attempt to buy a low-end foreclosure or short sale and then rent it out. In Shadowood, for instance, the condos (2 and 3 bedroom) are selling for $120,000-$150,000. And they're renting for about $1,250-$1,450. So you could buy one, get a positive cash flow, and just sit on it awhile. But there tends to be a lot of competition for those units. Long-term, that strategy should pay off. You'll get cash flow now, and at some point (though who knows when) appreciation.

Still, I'd probably look elsewhere for investment properties.

Hope that helps.
0 votes Thank Flag Link Mon Jun 6, 2011
Don Tepper, Real Estate Pro in Burke, VA
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