It depends on what is the plan after you move. In 5 years will you want to sell it or rent it out? Historically homes have appreciated at 4% average a year. That does not mean in 5 years your home has appreciated 20%!
Purchasing a home can lead to opportunity to build wealth and your investment portfolio. Choose wisely!
1. Closing costs when you buy
2. Possible fix up and remodel costs while you are living there
3. Closing costs when you sell
4. As much as 6% Realtor commission costs when you sell
So the property will have to go up by say 10% at least *just to break even* with what you have into the property. If the market is flat or declines, then you are going to have a big loss when you sell. If the market appreciates sharply then you will do well.
Lots to think about, and it all depends on the area and your personal preferences/situation. Best of luck to you - I know you'll find the perfect home whether you decide to rent or buy!
We are just following up to see if you bought or rented.
With the market as it is today, if you bought now, you would have a great investment for the future when you need to rent it.
We'd love to see where you're at. Feel free to get in touch.
Chris & Shris Dudley
Long & Foster, Realtors
Licensed in DC, MD & VA
Office #: (703) 556-8600
Office Address: 8227 Old Courthouse Road, Tysons Corner, VA 22182
Chris Cell: (202) 297-3047
Shris Cell: (301) 655-1521
Rentals market is absolutely hot these days and paying Rent Vs. Mortgage is the question which you need to understand and make decision on. Owning a home for 3 to 5 years can be a short period of time for some families and may not be for others. Given the fact that home prices and interest rates are still low - paying a mortgage Vs. paying a rent would be a better option. Again as my fellow agents have said: all it comes down to is what your comfort level is and in which directions you'd like to go. Paying rent is like paying someone else's mortgage so calculating cost on Rent Vs. Buy would help you. It would be a good idea to sit with a trustworthy and knowledgeable Realtor who help clients with both rental and sales needs and evaluate your options.
We have helped many relocating families with both rental and sales in this area due to Quantico and Fort Belvoir and would be happy to assist you as well.
Faiza Alvi - RealtorÂ®
Prince William Realty, Inc.
MILLION DOLLAR CLUB - 2011
Real Estate is about building relationships
& serving clients with honesty, integrity & passion.
It truly comes down to your personal comfort level.
3-5 years is a rather short time to own a house, especially considering the cost to sell, maintain the house, etc.
However, 3-5 years is a VERY LONG time in a life of a Family and if the rental HOUSE does not feel like a HOME it is worth to own :-)
I cannot advise you that way or another - only YOU can make that decision.
I think a big deciding factor could be the good old fashioned sweat equity. Are you good with home improvements, landscaping?
IF you can purchase a property BELOW your monthly rental payment and have the time and expertise to build up the "sweat equity," owning a home could be a very good idea, especially considering the historically low interest rates.
However, only YOU can make that decision.
Since you plan to stay only 3-5 years in the house, treat the purchase like you would treat purchasing a stock: invest only the amount that you would be willing to lose and not suffer a financial harm.
If you decide to purchase, remember the real estate mantra: location, location, location :-)
This gentleman is very astute and purchased a home for 635k in a nice neighborhood in Centreville (Virginia Run). If you would like to discuss with him or myself..please contact me.
I own rental property and can discuss the pros and cons and also discuss and show you stats from different areas.
If this is of interest to you I am happy to put my 25 years of experience to work for you!
PS: THANKS FOR SERVING OUR COUNTRY!!!
Erik J. Weisskopf,ABR,CDPE,CRS,GRI
Re/Max Distinctive Real Estate,Inc.
I know a lot of people will always give the rosiest opinion of the market(and even did during the boom), but you need to know the realities you face, and do your homework beforehand. Make sure you buy right, and with someone who understands the position you are in. It makes for smart decisions on something so important!
We will be using the VA loan to purchase. We have never used the VA loan before. Does this help us out any more than if we were to not use it?
Associate Broker, ASP
Envision Real Estate, LC
804-972-9927 Cell Direct
1. If you don't buy what will you do?
2. If you're renting, what will you pay and how will it "feel" to be there? (i.e. a studio might save you some coin but make you miserable)
3. If you don't own, how much additional will you pay in taxes?
4. If you do own, what will it cost you (monthly - and include expected maintenance costs too) and how will it make you feel?
Once you know the monthly cost and the emotional part of it, then you add in upfront costs to purchase and lease. Then add in the cost to sell a home (assume 8% of the sale price - and for purposes of this assume the market is flat). Now you have a reasonable understanding of the cost differences.
Now, best guess, what do you think the market will do? My best guess - depending on what you buy - the prices in Centreville will go up about 10% in that time frame. So if you were planning on spending $400K for a house there, then it will go up about $40K. Now you know what you *should* do. Then play the "whatif" game.
Whatif the market doesn't go up 10%? What if it's flat? What if it declines? Will you be able to stay, to rent it out or will you be financially ruined if things don't go as you expect? If you'll be financially ruined if prices decline 10% from where they are now - and you will NOT be able to make payments if you have to rent it and you will NOT be able to sell without doing a short sale... well then, rent. If you can stomach the risk and the up side is promising, buy.
I am happy to do this with you in person if you like.