Horizonhouse…, Home Owner in Arlington, VA

What does the future of Pent. City condos look like? I grabbed a 600sq 1bd/1ba for 190K, should I expect good return in the next decade?

Asked by Horizonhouse313, Arlington, VA Mon Nov 26, 2012

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You might expect a modest gain of 3% per annum. There have not been a great number of distressed properties there and the investor ratio is 33%. Prices are going up a bit faster along the Orange line but Horizon House is not a bad investment at all. Good luck!
1 vote Thank Flag Link Mon Nov 26, 2012
If you buy now...sell within 5 years. Tele-commuting will DEVESTATE the real estate market any where near DC. Over the next 5 years, Tele-commuting will increase 10 fold. People are going to buy cheaper homes farther out if they only have to go to the office once a week. I already have friends that are doing this and dumping their "close to work" homes. As the surrounding businesses in the DC area and VA lose customers that no longer live or frequent the area, places like Pentagon City and Crystal City will get run down and look more like housing projects.
0 votes Thank Flag Link Sun Jan 27, 2013
Well I am glad that your expectations are realistic. We have seen what the housing market has done over the course of 4 years, so in 10 years there is a sure shot at you earning a nice ROI. However have you thought of building an equity portfolio and starting with this one as your FIRST investment toward retirement? I work with a team of professionals who specialize in helping individuals do this with little to no money of their own, and doing so part time. If you would like to gain greater insight and begin preparing for your future, inbox I am here to help!

All the Best!
0 votes Thank Flag Link Tue Nov 27, 2012
This is a complicated answer because there are several factors that can give you a good idea if it is going to be a good return or not.

1. How did you finance the purchase of the property (Cash, FHA, or Conventional)
a. If you acquired a mortgage what was the interest rate on the mortgage and what was the down payment you put down on it?

2. Do you plan to live in the unit or do you plan to rent it out for the duration, occupy the property for the whole duration, or a mixture of both?

3. When you bought the unit, what did the other similar units in the building sell for?

4. What are your monthly and annual expenses on the condo (i.e. condo fee and property tax)?

There are also outside factors that could affect how the return too.

1. How does the federal government plan to avoid the fiscal cliff? How will that affect the job market in this region?

2. How will BRAC (Defense Base Closure and Realignment Commission) ultimately play out and can areas like Crystal City recover from loss of federal office space?

3. If you have a mortgage, will the federal government keep mortgage interest deduction intact as it is today?

In my opinion, its a relatively safe buy. Arlington County is a very desirable area due to the location and how strong the economy is there. The fact that very few condominiums are being built right now and with more and more people relocating to the area, you could see a considerable return when you do plan to sell the property. Good luck!
0 votes Thank Flag Link Mon Nov 26, 2012
There is an impending housing shortage. Not sure if you are looking to rent it, sell it, or just equity. I would only get information from someone local, not from another state. I think you will be ok on your return and will probably see some nice gains. :) Buy as much as you can now!
0 votes Thank Flag Link Mon Nov 26, 2012
Best to go directly to a local pro at "Find a Pro" in the header of this website for local advice.
0 votes Thank Flag Link Mon Nov 26, 2012
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