From: "Matt Warnock" 
Newsgroups: misc.consumers.house misc.invest.real-estate
Subject: Re: must buy rental or move out...
Date: Tue, 31 Aug 2004 23:19:31 -0400

"Bryan"  wrote in message news:ch3cms$12l$1@iruka.swcp.com...
> Matt Warnock wrote:
>
>> Nothing goes for that cheap around here.  Small 2-3 bedroom homes on a 
>> 1/4 acre of land go for 1/2 mil.  Compared to apts the same size on this 
>> street sell for the same price.
>
> Comparable properties - that's the way to go.  If you can really judge 
> them to be comparable and they've _sold_ for similar prices, then you've 
> figured out what the market price is.  If you're inexperienced and/or 
> unsure, and you can find an independent appraiser that you trust, a couple 
> of hundred dollars for an appraisal can buy a lot of peace of mind.
>
> I agree with previous posters - if you include the real estate commission 
> when you sell, it will be very difficult to come out ahead in 2 years.

I definitely agree that it's questionable how I will end up in a few years. 
Maybe I'm the new guy and I don't understand a lot of things, but I read the 
advice on here, I've heard the same advice to people on the different money 
shows on cable, etc, but I have two options:

If I rent for 2 years I spend:

24 x $1259 = $30216

and I have nothing at the end, no debt, no property, no advancement in my 
credit.

Or I can purchase a house and keep it for the same 2 years

lets say I spend $1500/month on the mortgage (I might be off,but bear with 
me)

24 x $1500 = $36000

$250,000 - $35,000(less interest) = 215,000

figure in taxes, some repairs, etc.  I'm not sure exactly what this will be, 
but I'm fully aware of it.

lets say I sell the apt in 2 years for the same as I bought it for, or God 
forbid, less,

aren't I still ahead?  because I can get back what I put into it, with the 
possibility of losing some, or even gaining some at the rate that real 
estate is increasing in this area.  And real estate is so out of hand here, 
that it could easily go up, considerably.  Plus my credit looks better if I 
pay my mortgage on time each month.

Basically I'm in a point in my life where I'm making more money than I need. 
I don't have car payments, student loans or credit card debt.  I don't have 
kids or a wife to spend money on.  Does this affect anything?

By the way, I live in Falls Church, Va just outside of DC.  That is why real 
estate is so high.

Thank for EVERYONE's advice!  I hope I'm not too burdensome.

-Matt