Buy Vs Rent Comparison

What’s cheaper, renting or buying a home in the Loudoun and Fairfax County area? This is a common question asked by many prospective homebuyers. The answer to the question really depends a lot on the buyers( or your) goals. Recently, Tulia rated the Washington DC area as a 12 on a sale of 1-35 as being cheaper to buy then to rent. Another similar report by Inman news recent reported that in 74% of cities nationwide buying is cheaper then renting. Washington DC area was one of the cities that was reported to be cheaper to Buy then Rent.
 
These reports are awesome at crunching the numbers but here are some other factors I think you should exam when making the decision to either buy or rent your next home:
 
1.    Location- there are some neighborhoods and communities you are simply NOT going to find rentals. If there is a school or commuter route you want or need you most likely are not going to be alone in searching out those few rentals that come up.
2.    Length of stay- Many of today's landlords will pull the rug from under a tenant once the market corrects enough for him or her to sell (very common in today’s market). Most leases are only one year long. After that all bets are off!
3.    Price of rentals: The reports both covered the average rental rates in the area but what many tenants do not realize is that a landlord can and will raise the rent on a tenant if he/she feels they can get it. Over the last three years rental rates have risen as much as 10% in some area and are expected to rise another 10% in the coming years.
4.    Lastly Interest Rates- This is the big wild card in today's housing market. Currently interest rates are historic lows. As of this post the going FHA 30 year fixed rate is right around 4.1%!
 
Here are some examples of rental homes with similar home for sale in the same neighborhood:
1. LO7661183 - 1201 CAMBRIA TER NE, LEESBURG, VA
Rental Price: $3,100
Sale Price: $350,000
 
2. LO7678119 -18705 RIVERLOOK CT, LEESBURG, VA
Rental Price- $4,500
Sale Price of similar home in same neighborhood: $622,500
 
3.  FX7676004 - 9480 VIRGINIA CENTER BLVD #410, VIENNA, VA
Rental Price- $2,100
Sale Price of similar unit in same building: $2,100
 
4.  FX7673175 - 11133 OAKTON RD, OAKTON, VA 22124
Rental Price- $7,500
Sales Price of similar home in same neighborhood: $1.5M
 
5.   FX7684282 - 9602 CENTER ST, VIENNA, VA 22181
Rental Price- $3,600
Sales price of similar home in same neighborhood: $639,900
 
Want to know where more great home can be found in the Loudoun and Fairfax County? Call or email me now!!
 
Take care,
Chuck
Serving all of your Ashburn, Chantilly,Fairfax,Herndon, Reston, Leesburg, Mclean and Loudoun County area Real Estate needs!