While you may be watching mortgage rates rise (the average 30-year fixed rate currently hovering around 7 percent) and the number of homes to choose from on the lower end, there is one important concept to consider— buying a home in Metro DC is still a better investment than renting.
We know that buying a home can feel like a major obstacle for many first-timers in Washington DC, Bethesda, Chevy Chase, Northern Virginia, and beyond, but passing on the opportunity this year could create an even bigger hurdle later as rents will only continue to rise and the days of the 3 percent mortgage rate may be long behind us.
Below are three reasons why homeownership still makes more sense than renting in the DC Metro:
Homeownership Builds Wealth
Homeownership allows Metro DC residents to start building equity and long-term wealth. It is a way to provide stability for households and a means of reinvesting wealth, into your own pocket. If you continue to rent, tossing more money out the window each year, you place yourself further from these benefits. Believe it or not, homeownership is often referred to as “forced savings” as you have the ability to save money each month by investing in your home instead of a rental.
Protects From Rising Rents
Rents in the Washington DC, Bethesda, Chevy Chase, and NoVA areas have risen consistently for decades. Consider this— when your rent rises, you pay more, which can make saving for a home even harder. Renters are often unable to save enough for a down payment and are pushed to continue on their current housing path.
Homeownership is an Inflation Hedge
With inflation high, landlords are more likely to raise rents in Metro DC. In fact, according to real estate industry news platform Keeping Current Matters, 73% of property managers plan to raise rents over the next two years. When you become a homeowner and choose a fixed-rate mortgage loan, you are able to lock in a monthly payment for 15 to 30 years.
Rest assured, first time DMV homebuyers, no matter how you acquire the down payment, whether through family or friends, your investment is one you will not regret. You have a significant opportunity— even in today’s real estate market—to better channel your monthly housing payment and watch your net worth build.
If you are ready to start your home buying journey in Washington DC, Bethesda, Chevy Chase, Northern Virginia, and beyond, our expert team at The Estridge Group would be happy to help you navigate the market!
Give us a call today!
