Greetings Cribline readers and Happy Father’s Day!
What a beautiful weekend. Saturday was the first time that I hosted a “sit down” with a group of people interested in learning more about home buying, and I passed on some key tips for gaining an edge in the current real estate market.
It was a good exchange and there were 10 people in attendance. It was an opportunity to remind folks not to get too caught up in the price of a house (as funny as that may sound), or too caught up with what the market may or may not do.
The point is that the market takes its twists and turns over time, but over the long run it has always gone up. And, what people should really focus on is whether they can afford a mortgage and look at how a mortgage payment may cost less than a rental payment.
Due to the tax deductibility of the interest on a mortgage and the low interest rates today, a million dollar home with a basement rental apartment can still often cost less than many one bedroom apartments in DC.
Take a look, for example, at today’s House Pick of the Week at 1313 E Street, NE on Capitol Hill. This newly renovated 4 bedroom 3.5 bath home is spacious, open, has parking, and boasts a separate legal rental apartment. It’s listed for $799,900. It has a rental apartment and see how the main house could cost less than the rental portion of the home below in the To The Point Analysis.
The main level features original woodwork, exposed brick, a bonus family room, and a bright open floor plan. The upstairs features 3 sun-filled, spacious bedrooms and two modern new bathrooms.
Other features include convenient off street parking for two cars and just blocks from the H Street corridor, close to Union Station, and Eastern Market.
To the Point Analysis: With 20 percent down on $799,900 of $159,980, the mortgage amount would be $639,920. At an estimated 4 percent 30-year fixed interest rate, the estimated gross payment would be $3,721/mo. There is a one bedroom basement apartment that would easily rent for $1,800/mo. lowering the gross payment to $1,921/mo. After tax deductions, the estimated net payment would be about $1,350/mo. Wow!
There are 2 honorable mentions this week: 1430 5th Street, NW. It is a freshly renovated all amenities home steps to the soon to open O Street Market. It’s a 1800 plus square foot 4 bedroom, 2.5 bath home with a chefs kitchen with stainless appliances and granite. It’s listed for $949,900.
And, check out 663 Maryland Ave, NE. It’s a 4 bedroom, 3 bath home with potential rental apartment and garage parking. It’s listed for $829,000.
Again Happy Father’s Day and happy house hunting!!!