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Is it Cheaper to Rent or Buy in Northern Virginia?3 Areas 3 Scenarios

By
Real Estate Agent with Samson Properties VA0225077251

While some believe in renting while others want to be a home owner. Depending on your financing and other personal situation renting or buying a home in the Northern Virginia Real Estate market will make sense.

Here is the current real estate market situation in 3 different areas in the Northern Virginia area:

Buy or Rent in Reston, Virginia

Assuming the condo has 2 bedrooms, 1 full bath, condo fee of $300 and average annunal taxes of $2000

Average condo rental - $1500 per month.

Average sales price of a condo -$250000

Estimate Monthly mortgage based on  20% downpayment, 4.25% interest rate, $30 per month insurance.

Principle, Interest, Taxes, Insurance + + Condo Fee = $1533.

Conclusion- If the above hypothenical situation works for you, there is not a huge gap between renting and owing a place in Reston Virginia. Not considering other factors it may be worth considering purchasing over renting a condo in Reston Virginia given tax benefits while owing a home.

Buy or Rent in Herndon, Virginia 20171

Assuming the town home has 3 bedrooms, 2 full baths and 1 Car Garage. With HOA dues of $100 and Estimate annunal tax of $4000.

Average town home rental -$2100

Average sales price of a town home-$450000

Estimate Monthly mortgage based on 20% downpayment, 4.25% interest rate, $50 per month insurance.

Principle, Interest, Taxes, Insurance + HOA Fee =$2254

Conclusion- Similar to the Reston the gap between rental and owning a home own is not huge. 

Buy or Rent in Ashburn Virginia 20148

Assuming the town home has 3 bedrooms, 2 full baths and 1 Car Garage. With HOA dues of $150 and Estimate annunal tax of $4000

Average town home rental -$2100

Average sales price of a town home-$400000

Principle, Interest, Taxes, Insurance + HOA Fee =$2107

Estimate Monthly mortgage based on 20% downpayment, 4.25% interest rate, $50 per month insurance.

Conclusion-Similar to the Fairfax county areas in Reston and Herndon the gap between renting and owning is very slim. 

Consult your lender and/or mortgage consultant to qualify for mortgage programs and monthly payments before making a decision to buy or rent a home in the area.

 

Posted by

 
                             
Associate Broker
MRP, ABR, ePRO

NVAR, Life Time Top Producer
NVAR,Multiple Million Dollar Sales Club Member
Samson Properties
Cell - 703-625-4949
Email - info@eNOVAHomes.com
Web: www.eNOVAHOMES.com
 
Residential real estate agent serving Northern Virginia in Fairfax & Loudoun county over a decade and almost $100+M in sales volume experience. 


 
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Ritu, great post identifying the payments for rent versus mortgage.   Homeowners can also claim the taxes and interest paid, which could make paying a mortgage tip over the top!   PLUS, you will own and do whatever to the property you would like.

Apr 20, 2014 11:39 PM
Anonymous
Patrick
The flaw here is the 20% down requirement. How many potential buyers (1st timers or homeowners whose houses are back near even) would have the necessary cash for that down payment, at those price levels? I'd like to see the numbers run vs a 10% or 5% down payment with PMI included.
Apr 21, 2014 03:36 AM
#2
Ritu Desai 703-625-4949
Samson Properties - Chantilly, VA
Northern Virginia,Washington DC & Maryland Realtor

Patrick I agree if it is first time home buyer with limited resources then they can do the math depending on their affordability if renting will make sense over purchasing.

Apr 21, 2014 04:02 AM
Ritu Desai 703-625-4949
Samson Properties - Chantilly, VA
Northern Virginia,Washington DC & Maryland Realtor

@Joan I agree the tax benefits should be part of consideration. Buyers should consult their tax adviser or an accountant for the amount of saving.

Apr 21, 2014 04:03 AM
Wayne Johnson
Coldwell Banker D'Ann Harper REALTORS® - San Antonio, TX
San Antonio REALTOR, San Antonio Homes For Sale

Ritu-I'm surprised the number are so close in your area. A couple of other things to consider might be for renters, rates usually go up each cycle; and for buyers there should be some consideration for maintenance and upkeep year-over-year.

Apr 21, 2014 08:23 AM