1st Time Home Buyer - Condo Buying Advice

[John Park]

Hello All, 

1st time home buyer here - looking mainly in Fairfax/Arlington counties, with loudon being a last resort. With following the 28/36 rule, my income allows me to either purchase a property up to 430K with no HOA fees. However, I'm finding that a lot of these are older townhomes in areas that I don't prefer living in. My next best option would be a 2 bdr condo (for cheaper price + condo fee), which are also a little older, but in better locations of Fairfax county. I would much rather not buy anything less than a 2 bdr, but i'm also seeing 1 bdr condos for about the same price but in nicer areas. My goal is to buy this as my primary place. I would hope the value to appreciate a bit, and at the very least, not depreciate heavily in value over the years. Some advice would be appreciated on the following questions I have:

1. Given that the HOA management is the same, any recommendations on whether I should opt for an older 2 bdr vs a 1 bdr in a nicer area? I've read that buying a 2dr is always the better choice for a condo, but am concerned about the older condo losing value faster than the nicer 1 bdr, since it's newer?

2.  Are there any resources that exist to determine what the fair market price for a condo should be in a particular area?   While I'm worried about condo depreciation, I'm also concerned about over-purchasing for a condo off the bat.  I just don't want to get gouged.  

I probably left out some important info that might be needed to give me a solid answer, so feel free to ask and I shall provide.  

TIA for any advice, and glad to have found this forum.

JP

[Yanina Panfilenka]

Quote from @John Park:

Hello All, 

1st time home buyer here - looking mainly in Fairfax/Arlington counties, with loudon being a last resort. With following the 28/36 rule, my income allows me to either purchase a property up to 430K with no HOA fees. However, I'm finding that a lot of these are older townhomes in areas that I don't prefer living in. My next best option would be a 2 bdr condo (for cheaper price + condo fee), which are also a little older, but in better locations of Fairfax county. I would much rather not buy anything less than a 2 bdr, but i'm also seeing 1 bdr condos for about the same price but in nicer areas. My goal is to buy this as my primary place. I would hope the value to appreciate a bit, and at the very least, not depreciate heavily in value over the years. Some advice would be appreciated on the following questions I have:

1. Given that the HOA management is the same, any recommendations on whether I should opt for an older 2 bdr vs a 1 bdr in a nicer area? I've read that buying a 2dr is always the better choice for a condo, but am concerned about the older condo losing value faster than the nicer 1 bdr, since it's newer?

2.  Are there any resources that exist to determine what the fair market price for a condo should be in a particular area?   While I'm worried about condo depreciation, I'm also concerned about over-purchasing for a condo off the bat.  I just don't want to get gouged.  

I probably left out some important info that might be needed to give me a solid answer, so feel free to ask and I shall provide.  

TIA for any advice, and glad to have found this forum.

JP

 Hi JP,

I'm with Russell on 2 bedroom condos and not much appreciation. Guess, its pandemic shifted everyone to single family residences.
As for the age. I'd prefer newer builds with all the amenities and well run building. The thing is that each HOA made different and you should look not only into the dues but on how it is managed. Request minutes for the latest HOA meetings, statements, CC&R (Covenants, conditions, and restrictions). Does it have enough reserves, any special assessments on the horizon (could be extra thousands in additional fees), when is the next big expense coming (like roof change, elevator replacement, etc), the rent cap and what rents options are available. Also, check the amenities available, that will run the HOA dues too.
Location-wise, check whatever will be easier to rent in the long run.
Also, depending on how you're comfortable with sharing your apartment, 2 bed could be a great house-hack.