The Lovely Penn Quarter, D.C.: My friends and I came up with the idea last year that we could make a living by buying condos, living in them for two years, selling for a big profit and repeating. The appreciation would be more than we could make by working and the profits would be tax free. What could be better, right?
So I bought my first condo in Penn Quarter at the end of last summer. Now all my friends have decided to hold off. They say that they aren't sure real estate is "it" anymore. But I'm counting on my condo to appreciate significantly over the next two years to help me pay down some credit card debt I've been carrying for a while.
My condo hasn't really gone up in value since last summer, but I'm thinking the market is just taking a healthy breather before skyrocketing again. Should I be getting worried at this point or are my friends just being chicken littles during the market's pause in appreciation? I don't want to own my place if its not going to increase in value soon. Help!
I suppose I shouldn't be too harsh, given that I missed out on a lot of appreciation over the last several years by not owning. But really, the idea that there are people out there who thought they could make a living indefinitely by "flipping" condos just boggles the mind. It makes me feel like I could make a living selling money trees (or maybe Brooklyn Bridges) to naifs. As I pointed out last June, the launch of "condoflip.com" was "a sign of the housing apocalypse."