More Proof that D.C. Real Estate is... umm.. oh yeah, AWESOME! :)
October 08, 2007
– Comments (4)
After all, if things weren't so great, why would Ryland houses be selling at auction for giant reductions?
Not sure why people are shedding tears of joy to be shelling out nearly half a million in this market, however. Let's do a little sleuthing, shall we?
The minimum bid for the 2,068-square-foot Fairfax County home was $429,999. Won-Ki Choi wrote his name down minutes before the auction was scheduled to end at 3 p.m. He was the only bidder.
Ouch. Paid too much then. And if we look at Ryland's web site to figure out what they're selling in Fairfax, we get only one listing: Condos. In fact, here's the very unit type they bought (biggest in the complex). I just called Ryland and association fees are $220 a month.
Payments, then? Let's consult the Fool calculators, shall we?
With a 10% down payment, it comes to $3,079 per month, including taxes, insurance, association fees, but not PMI and no maintenance. Note, that payment (even after a substantial pile of money down) would consume 57.7% of the median monthly take-home pay for this area.
Let me finish by noting that I rent a town home in a rental complex that is in a much better location (2x closer to DC) and is in an area well liked for its shopping, schools, and lack of sprawl. (Fairfax is strip mall hell...)
To be fair, this Ryland unit is bigger, newer, and nicer. But otherwise, they are fairly comparable. We've got 3 BR, 2.5 baths too, about 1500 sq feet, two levels. We pay about $1700 a month in rent, and zero maintenance, zero tax, zero association fees. We have a pool and health club as part of the community, as well as free shuttle to the local metro stop (a five minute ride). That's right, comparable living, 45% cheaper to rent.
Any more questions on which way prices are going to keep heading?
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