The Cost of Buying: Comparing Condo Purchases in DC vs. Arlington
Recently, UrbanTurf reader Navid Choudhury came to us with an intriguing request: help him determine the cost-of-living difference between buying a condo in DC versus Virginia. Choudhury was concerned that the significant difference in income tax (DC’s rate is 2.75% higher than Virginia) would make a big difference in his monthly budget. He was also weighing a few other variables, like the cost of food, owning a car, and property taxes.
So, we narrowed down the circumstances and went about crunching the numbers.
For our calculations, we compared two married couples living in two-bedroom condos, one in Clarendon and one in DC. We assumed that both offered a 20 percent down payment, and that the DC residents will live in walking or bicycling distance of work. Our income tax rates came from here, our property tax information for Virginia from here, and for DC from here. We also took into account the Homestead Exemption for DC residents, which lowers the assessed value of the home by $67,500 for tax purposes.
Here is what we found:
All told, it looks like a difference of about $10 a month. However, if we were to factor in bus and Metro transportation in DC, that would add $70-$80 in commuting costs, making DC more expensive. (We also didn’t consider that state income tax may be deducted from federal tax returns.) There are a couple other factors that would impact the final number, like differing insurance rates and the higher restaurant tax in DC. But for these hypothetical couples, the budget almost balances out.
See other articles related to: arlington, arlington condo prices, cost comparison, dc condo prices, dc versus arlington, dclofts
This article originally published at https://dc.urbanturf.com/articles/blog/the_cost_of_buying_comparing_life_with_a_condo_in_dc_vs._clarendon/5218.
Most Popular... This Week • Last 30 Days • Ever
In this article, UrbanTurf will explain what special assessments are, how they work, ... read »
Nearly 1,400 residential units are on the boards around Union Market, about the same ... read »
Plans are moving forward at the site of a long-planned project in Ivy City, however w... read »
Up 8% year-over-year, it is the first time that prices have exceeded $800,000 for det... read »
If there was ever a place where the old adage “one man’s trash is another man’s... read »
- What Are Special Assessments in Condo Buildings and What Do They Cover?
- Hotels, A Public Park and The 1,400 Units In The Works For Union Market
- Douglas Development Pitches Large Warehouse For New City Site Along New York Avenue
- The Price For A House in The DC Area Hit A New High in April
- Tile, Furniture, Appliances & (Much) More -- The Local Warehouse Chock Full of Salvaged Home Goods
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