With the low current interest rates, owning costs less than renting. You can “lock in” your housing costs for the long term versus experiencing ever rising rental increases. For instance, we have this townhome (FX8773328) currently for sale in Lorton, Virginia for $289,900.
Over the past years, townhomes similar to this one have rented at the prices shown with constant rental increases:
• 1995- $800 per month
• 2000- $950 per month
• 2005- $1250 per month
• 2010- $1500 per month
• 2015- $1725 per month
• 2020-?
• 2025- ?
This makes you wonder what future monthly rental costs will be, while the cost to owning a home are essentially fixed each month, besides relatively minor increases in taxes, insurance and HOA. Interestingly, if you purchase with a “0” down VA Loan your total monthly payment would be less than $1,725.
Buying at this time is favorable because:
• You save on taxes with home ownership and can itemize deductions
• The November to January timeframe puts you in a buyer’s market versus competing with tons of buyers in the “hot” spring market that often turns to bidding wars because of the amount of buyers and inventory available
• Since there is less competition at this time of year, buyers have more opportunity to purchase an updated home instead of having to purchase a fixer upper that would require additional cash
Whether you are a first time buyer and would love to purchase a great starter townhome that is updated in Lorton under $300k, like the one above, or are interested in moving up to a larger home, please contact any Integrity Real Estate Group Agent!
