What's Hot: Mortgage Rates Fall Towards 6% Following Fed Cut
Trulia: Buying 32% Cheaper Than Renting in the DC Area
✉️ Want to forward this article? Click here.
A home for sale on Capitol Hill.
Buying remains cheaper than renting in the DC area for those that can put a sizable down payment on a home, according to a new report out by Trulia.
The real estate website determined that buying is 32 percent cheaper than renting in the DC region, and 59 percent cheaper than renting in DC proper. The last time UrbanTurf reported on this metric, the percent in favor of buying had actually dipped from 30 percent to 17 percent.
The above-average margin of savings that area homebuyers see relative to renters is seen more in Prince George’s County, in places like Bladensburg (46.1 percent) and Fort Washington (39.8 percent), than in Montgomery County or Virginia, where the margin is anywhere from 44.2 percent in Montgomery Village to 9.4 percent in Great Falls.
story continues below
loading...story continues above
Understanding Trulia’s methodology is key to interpreting the data, as it is based on a set of assumptions and comparing the median monthly costs for purchasing and renting.
Trulia’s analysis assumes a 20 percent down payment on a 30-year, fixed-rate mortgage financed with a 3.86 percent interest rate, and that the buyer will live in the home for at least seven years. It also assumes that homebuyers are in the 25 percent tax bracket, and calculates the net present value of making a home purchase rather than investing that money elsewhere. Costs also factor in renovations, average metro property taxes, utilities and maintenance for homes, as well as insurance and one-time costs for either type of housing.
If you’d like to take a crack at the numbers yourself, Trulia has a rent-versus-buy calculator, so that users can alter the assumptions and see whether the conclusions are consistent.
See other articles related to: buying versus renting, buying versus renting dc, trulia trends
This article originally published at http://dc.urbanturf.production.logicbrush.com/articles/blog/trulia_buying_32_cheaper_than_renting_in_the_dc_area/11132.
Most Popular... This Week • Last 30 Days • Ever
A plan to add another new residential building to the Friendship Heights pipeline is ... read »
Mortgage rate buydowns can be a good option for buyers who want to save money on inte... read »
Plans filed this week provide the latest look at the 106-key hotel in the works at an... read »
The eight-bedroom, 35,000 square-foot home in McLean known as The Cliffs went under c... read »
The large new development would take the place of the Ballston One office building al... read »
- Donohoe Files PUD For 127-Unit Development in Friendship Heights
- How Does a Mortgage Rate Buydown Work?
- A Look At Georgetown's New 100-Key Hotel Along The Canal
- A $30 Million Sale? One Of The DC Area's Most Expensive Homes Finds A Buyer
- Updated Plans Filed For 328-Unit Development At Arlington Office Site
DC Real Estate Guides
Short guides to navigating the DC-area real estate market
We've collected all our helpful guides for buying, selling and renting in and around Washington, DC in one place. Start browsing below!
First-Timer Primers
Intro guides for first-time home buyers
Unique Spaces
Awesome and unusual real estate from across the DC Metro