Any opinions on RE in Boston and the surrounding suburbs. I know people talk of the bubbles in Miami and certain areas of CA, and even Boston itself. I feel like things are really nuts even in the suburbs. Many places that are 10 to 15 miles away from the city are still very pricy. The best you can do for 300k is a small 2 bedroom condo with $300/mo. condo fees. How long can this continue??
The condos in that price range are about 1000 sf. The single family homes in that price range are very old and often 2 or 3 bedrooms 1 bath and about 800-1000 sf.
I agree that they seem way out of line. I bought here (Waltham) in 1996 and my house has appreciated over 120% since then. There was a good article in the Boston Globe over last weekend showing that rents were about half the cost of servicing a mortgage (apples to apples). So either rents have to double or house prices fall back in line - I suspect the latter is more likely should mortgage rates rise in a hurry. On the other hand, my trading style is buy new highs and sell new lows, so maybe now is just the right time to buy Boston real estate. Go figure. I would not want to be in the position of having to buy right now.
This is why I moved to Houston. Now living here under the shining sun and happiest ever. Oh, by the way, I bought a brand new condo with 2 bedrooms 1 mile from downtown for 145K last year.
i think this is the case of people buying homes with "interest-only" loans. starting to see alot of this throughout the country
Head north to New Hampshire. Homes there are a lot cheaper and you'll have no income and sales taxes.
In general, the further north you go, the cheaper homes are. However, you have to balance it out with your commute. Salem, Pelham, and Windham are good places to start. Each town is different. Pelham being the cheapest, and Windham being the most expensive.