Home Buying in Oakton>Question Details

Jing, Home Buyer in Fairfax, VA

Is it time to buy one for retirement?

Asked by Jing, Fairfax, VA Tue Jun 26, 2012

I am going to move to DC in three years after retirement to unite with our daughter. My friends told me that maybe it is time to buy one now, because the price of house maybe reach to the bottom and begin to rise. Is it possible that I rent out the house as landload at the first three years to cover some expenses around the house, then move in as our resident home. Is it a good idea? If it is, can we find any agent to manage the house for the first three years as rental property? What type of house and what area is good for both rental and resident property?

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5
Hello Jing.

Shristhi and I wanted to follow up with you from your posting back in June last year.

The market is GREAT right now. Properties listed for sale are selling quickly, and equally properties listed to rent. So, have you found yourself a property to buy, or do you have any questions that we might be able to help you with?

Best,

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
Email: chrisdudley@longandfoster.com
Shris Cell: (301) 655-1521
Email: shristhi.dudley@longandfoster.com
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http://www.dudleyrealtor.com
0 votes Thank Flag Link Tue May 7, 2013
It does appear that now is an opportune time to buy with interest rates at historical lows and housing prices just starting to tick up a bit. Keep in mind that since you would be renting this initially it would be considered an investment property. You would most likely be required to put down 20-25% or more and perhaps be at a slightly higher interest rate. First decide on what you desire for a retirement home and make sure it is what you want. Renting your house should not be a problem. Most good agents can take care of this for you. Let me know if I can help you in any way. Our office is in Fairfax about 3 miles from the Oakton.
0 votes Thank Flag Link Tue Jun 26, 2012
Jing,

I suggest you might want to check that with your lender - unless you are financing the purchase by yourself by paying cash.

Typically, lenders require bigger downpayment for investment properties and your interest rate might be slightly higher on investment property than for primary residence. The main reason for that is that rental/investment properties are much higher RISK for lenders than primary residences.

I know you plan to occupy the property after three years, but I would discuss that with your lender. The last thing you want to happen is to be accused of MORTGAGE FRAUD.
By the way, your agent, if you plan on using one, will question you about it because it is part of the contract - you must disclose by law if you intend to use the property as a primary residence or an investment property.

Good Luck
0 votes Thank Flag Link Tue Jun 26, 2012
Hello Jing:

Your friend is right that the housing market is very favorable for buyers these days, right now the prices of homes are not at the bottom as they have started to increase but still it's a good time to buy given the fact the interest rates are historically low. Renting any house near DC is not difficult if you have a good Realtor by your side. Also the rental market is very hot in this area these days, so if you plan on owning a home in future after retirement then buying now and renting it until you move to VA would be the best option.
My team does manage properties for our clients in other states and overseas if you need more information on that please feel free to call/email me.
What type of house?? Well, Jing it all depends in what kind of house you would like to live after you move to Virginia, any house which is well kept can be rented by you Realtor and managed by your property manager who will make sure that it is kept in good condition and the dues are paid on time.
Which area: Rentals are in high demand in all areas - all the way from Woodbridge to DC it all depends how much you would like to spend and which kind of property you will be looking in to, I will be more than happy to discuss the options with you over the phone or in person and help you with your real estate needs.

Hope this information is helpful to you!!

Best Regards,
Faiza Alvi - Realtor®
Prince William Realty, Inc.
703-389-7973 (Direct)
703-580-9995 (Fax)
http://www.house2homeva.com
MILLION DOLLAR CLUB - 2011

I believe:
Real Estate is about building relationships
& serving clients with honesty, integrity & passion.
0 votes Thank Flag Link Tue Jun 26, 2012
Jing,

Great question! I believe this could prove to be a great idea..though many would prefer to buy as owner occupants..then rent it..then maybe do a 1031 or move in. Doing this allows you to get a lower interest rate because you get financing as owner occupied.

You may also speak with your accountant as to whether this is a good time for YOU to be doing this. If you need help..I am happy to put my 25 years of experience to work for you. I too, have investment property and have a pretty tight lease addendum I use in conjunction with the lease.

Type of house etc. depends on where and price range etc. and what type product you would eventually want to live in. Townhomes are typically the most favored investment property because you have a broad base of rental prospects and maintenance is minimal. I have sold sight unseen to prospects from out of town as well!

Feel free to contact me to discuss in depth.

Have a great day!

Kind Regards,

Erik J. Weisskopf, ABR,CDPE,CRS,GRI
Erik@AskMeAboutHomes.com
Re/Max Distinctive Real Estate,Inc.
703.216.1222
0 votes Thank Flag Link Tue Jun 26, 2012
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