Attention Home Owners & Investors
There’s an interesting post dealing with rents on the National Association of Realtors Friday blog that I wanted to bring to your attention.
Rents continued to increase in the latest data, with a 2.4 percent gain from one year ago in November. The pace of increase has been stronger than that of the past five months, rising at an annualized rate of 3.0, 4.6, 2.8, 4.8, and 2.8 percent from July to November. That means that 12-month rent increases will move even higher in the upcoming months. <<read the full post>>
The chart here — referenced in greater detail in the NAR post — does a pretty good job of telling the story. If you’re thinking about buying and holding real estate for the long haul, the Northern Virginia region is a great place for that because of the great demand for housing.
Imagine this scenario: you own a home with a 30 year fixed mortgage. Your monthly PITI (principal + interests + taxes + insurance) is $2k. Comparable rents in your neighborhood equal $2k so you decide to rent your home and let someone else pay off the mortgage. The pace of rent increases and inflation over 5, 10 & 15 years will quickly outpace your fixed monthly costs.*
Look down the road 15 years and you’ll see a different scenario altogether. The $2k monthly rent you got at first now looks more like $2,640.** And of course you’ve been adding the extra money to your principal payment all along and suddenly your 30 year ball and chain looks like a 20 commitment.
Obviously I’m not addressing the potential for appreciation or depreciation of your property. But since we’ve come through a massive recession and seen steep price corrections, I’ll let you make the assumption that the upside is far greater than the alternative.
That’s the way I see it, do it, teach it.
Check out the new Home Search feature throughout the NorthernVirginiaWelcomeHome.com site on the left hand side of every page. You can search by city and drill down to specific neighborhoods — and see results immediately. Hope you’ll check it out and let me know what you think. Also be sure to sign up for e-mail alerts.
Jon Tripp is a licensed Realtor® in Virginia and affiliated with GM Realty, LLC [Gohar Ihsan, Broker].
* Other than county real estate taxes that may [ok will] increase, your monthly costs should remain fixed.
** Based on 2% annual rent rate increase
Homes available for under $3.9 million…thank goodness
The other day I was headed to a class I’m taking on digital media. As I was driving down a quaint old — very old street — in Georgetown I passed a row of new townhomes on my right.
Keep in mind that I’m a Realtor in Virginia and prices of the homes I deal with are under seven figures.
Well, the sign stuck out quite prominently to me when I saw prices for the townhomes started at $3.9 million.
Started! Wow.
I know people who can afford that kind of living, but that’s not my bread and butter.
I am happy to report that in good ole northern Virginia there are plenty of townhomes, condos and single family homes that are well below $3.9 million. Sure you may not get the quaint old streets and Potomac River scenery, but you won’t have the mortgage that goes along with those pristine views either.
If you happen to be searching in the Northern Virginia area, why don’t you set up a search that will alert you to homes that match your description. There’s no obligation and it’s FREE.
Hmmm. Wonder what the view is like from those Georgetown townhomes.
Get Your E-newsletter Market Report
I hope you’ll take a moment and sign up for the Tripp Real Estate Group Market Report – a free e-newsletter I’m offering. I’ll periodically put out news and information on the northern Virginia real estate market that will impact your buying and selling decisions.
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or if you’re feeling adventurous scan the QR subscription code with your free iPhone or Droid scanner app.
BTW, do you think QR codes are still relevant or are you still asking, “what the heck are they?”
Here’s a writeup on them and why they are cool / relevant.
Anyway, don’t get so caught up reading that you forget to subscribe for this report.
Jon
End of the year is here…again
Christmas is rapidly approaching. AGAIN. Seems like the movie Groundhog Day only the plot involves Santa Clause, shopping and a whole lot of holiday traffic.
End of the year is here...again
So if you’re now realizing the end of the year is here, you’re not the only one caught by surprise.
Are you sidelining any thoughts – like your last minute shopping plans – of buying or selling a home until the fluffy white stuff comes and goes?
I’d like to hear.
I’m hopeful that we’re going to have an active Spring into Q2 of next year. Like years past, the market will be dormant for the next three or so months with everyone hoping and praying for positive economic news that will kick start the market for sellers.
What do you think next year will look like for buyers and sellers?
A couple of my clients are packing it in for the year with eager anticipation of the first signs of spring. Let’s just hope their plans to sell don’t turn into a rerun of Groundhog Day.
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