This biweekly sponsored column is written by the experts at Gordon James Realty, a local property management firm that specializes in residential real estate, commercial real estate and homeowner associations. Please submit any questions in the comments section or via email.
When relocating, one of the first questions you should ask yourself is if you are going to rent or buy. The answer is not always so straightforward.
If you’re just passing through, renting may be a better option. But if you’re willing to manage property from a distance, buying and living in a home for a short period may be best because you can rent it out later.
When Renting a Home Makes More Sense:
You Plan on Relocating
Unlike other areas of the country, D.C. has a very transient population. While it’s true many people stick around for the long term, many are just passing through. Temporary government appointments, military personnel and short-term government contracts all contribute. If you know you’re not going to be around for the long-term, renting is an easier option with less commitment.
Your Income Is Unpredictable
Self-employed professionals and contractors don’t always know what their income will be in the long-term. While contractors can expect a predictable paycheck while on contract, once the term ends you’ll be stuck with a mortgage payment no matter what. If cashflow is an issue, owning a home will make it harder for you to downsize when times get hard.
Retirement is Close
Even if you have a pretty hefty retirement fund, D.C.’s high cost of living can wipe that out quick. If you can buy for cash and still have plenty to live on, then owning may be for you. Otherwise, renting is a better option. The fixed costs (though rents do rise) will make it easy to budget. Renting also provides you with the flexibility to downsize or move into your RV and travel.
Mortgage Rates Are High
The past few years have seen some of the lowest rates for a long time, but lately rates have begun to rise slightly. Because of the high sticker price of Washington homes, try to buy when rates are at a low and rent in the meantime.
Why Buying a Home Is Your Best Bet:
You Want to Start a Family
Some of the top public schools in the country are in the D.C. area, so it makes sense to want to raise a family here. If you’re looking to settle down, the suburbs are an affordable and more spacious alternative to living in the city.
You Plan on Staying Put for 10 Years or More
Even if you’re not starting a family or already have one, buying makes sense if you plan on spending at least a decade in the area. Rents rise every year, but mortgage payments don’t.
Mortgage Rates Are Low
Rock-bottom mortgage rates are a perfect reason to buy a home. Rates have been holding low for quite some time, so it’s best to look as soon as possible.
Rent is Extremely High
High rent is a fact of life in the Nation’s Capital. Since rent tends to increase by a percentage every year, take advantage of fixed mortgages where your payments never change over time.
There’s no one perfect answer for the rent vs. buy question. It all depends on your situation. Take your time to explore your goals and your financial picture before making the decision. If you’re still unsure, a calculator may help you determine what’s right for you.
As Arlington County continues collecting feedback on the preliminary concept plan to turn Langston Blvd into a “Green Main Street” over several decades, a few disagreements have emerged. Some say…
RSVP to learn about the Forestry and Natural Resources Plan during the virtual open house tomorrow at 7 p.m.
Within the first five minutes of Netflix’s new series Partner Track, Arlington native and Yorktown High School graduate Alexandra Turshen already has her “boss” moment by telling the new paralegal…
The Arlington Art Truck is back this fall starting October 1 with an exhibit focused on Arlington’s birds.
Now you can have fun with your family and friends when deciding where to eat!
Just hop aboard The Lunch Train and set the destination for: breakfast, brunch, lunch, dinner, or nightlife!
– No app necessary. Simply go to the website if you’d like!
– No account necessary
– Use your current location or a desired location
– Add restaurants you’re interested in, invite your friends, and play the game!
Lyon Park & Ashton Heights’ biennial home & garden biennial tour is back. The tour will include contemporary custom homes, older historic bungalows as well as renovated properties. One of the stunning homes on the tour is pictured above. In addition to beautiful & unique homes, the Villa & Vistas ’22 event will conclude with a festive reception at the Lyon Park Community Center at 414 N Fillmore Street, Arlington VA 22201. What could be better right?
All proceeds from this event will go to the Lyon Park Citizens Association (LPCA) towards our neighborhood jewel & hub, the Lyon Park Community Center (LPCC).
When: Sunday, October 2nd, Noon – 4 PM.
Where: Meet to get your tickets and the tour map at the Lyon Park Community Center (414 N Fillmore Street) We will have a table with information outside.
Are you ready to jump into homeownership or started considering it but don’t know where to start? Financial preparation is key when thinking about purchasing your first home and the first step to getting pre-approved. Join ACFCU for our Homebuying