Rents Have Skyrocketed - You May as Well Buy!
I have spent some time over the past year with clients looking to rent in Bristow, Gainesville, Manassas and Haymarket area of Northern Virginia.
Properties were few and when they did come on the market, they were gone very quickly and the price was very comparable to what you would pay to purchase a house similar to it.
For some, it may have not been the time to buy, but if it is at all feasible to do so, you should consider purchasing instead of renting. Prices are still good and the rates are still low. See the statistics in the blog below...
If you are considering buying or renting in the Northern Virginia area, give me a call. I would love to help you!
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Rents Have Skyrocketed - You May as Well Buy!
According to a recent report out of Washington, rents across the country jumped 11.6% in 2010. The national average in December was $1319 compared with $1181 in January. Via Hotpads.
We have seen a not-so-subtle push toward a rental mentality of late which has been fueled by a number of factors. One of them is the increasing number of home owners who have lost their homes due to foreclosure. This situation has increased the pool of people looking to rent.
However, those who are looking at renting as a solution should consider the following:
- With the high cost of renting, more of your monthly income will be going into someone else's pockets rather than adding to your bottom line.
- The cost of borrowing money is still at an all-time low. You may want to speak with a banker and calculate what a monthly home or condo payment would be. It could be the same as a current rent.
- The increase in rental prices has been matched by a steady fall in home prices which have dropped by 9.8% nationally over the past year.
The combination of the large inventory of homes available along with falling prices and cheap money has created somewhat of a perfect storm for home buyers.
Of course, we can't be certain what the trend will be over the next few months, but those who are currently in a rental situation may just want to keep a close eye on where it is headed.
It may just prove to be unnecessary to put money out each month and give it to the landlord when it could be staying right at home - your home.
"Rents Have Skyrocketed - You May as Well Buy!"
This post was written by
Claudette Millette, Broker, Owner, The Buyers' Counsel - (508) 881-6230
An Exclusive Buyer Brokerage serving the Greater Metrowest area
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