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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Tradelite who wrote (14721)	10/30/2003 10:49:57 PM
From: Doughboy	Read Replies (1) \| Respond to of 306849

Well actually, my house is in Chevy Chase, MD which is similar in housing stock to McLean. And I only bot it 7 years ago and still make positive cash flow. Granted, if I bought it today, I'd lose money on it (since it's appreciated 150% in value), but that's partly a function of the appreciation and partly a function of the soft rental market. Up until a year ago, I would have said that the rental market kept up with the appreciation. There's always a strong group of IMF/Worldbank/embassy renters that don't look to buy and get a housing stipend. My other place is a condo in Dupont Circle and it has performed better in the recession; I had no trouble renting it out this past summer and if you bought it today, you'd be nearly at breakeven with cash flow and a little bit ahead after taxes. Overall, not taking into account the appreciation in value, I doubt these are good investments, but with the appreciation in the Washington market (which I'm sure you know was around 20% per annum over the last few years) the returns for investment are supercharged. I'm only in my 30s, so I've been lucky to ride this housing boom.