What's Hot: A Closer Look at the Mansion Tax | New Renderings Show Retail Plaza, Park at 435-Unit Takoma Metro Development
The Cost of Buying, Revisited
Earlier this month, we took a stab at calculating the difference in monthly costs associated with buying a $545,000 condo in DC versus Virginia. Based on the requests of a few commenters, we’ve decided to revisit the comparison (using the same married couple), this time folding in Maryland and adding a couple more cost considerations.
We added a column for Maryland, assuming a condo in North Bethesda, which joins the unit in Clarendon and the one in DC. For the sake of our comparison, we still assumed a 20 percent down payment with an interest rate of 4 percent over 30 years, although we recognize that loans above $417,000, known as high balance loans, usually come with slightly higher interest rates. We calculated the closing costs using Federal Title’s Quick Quote calculator (this number may vary from title company to title company). Our income tax rates came from here, our property tax information for Virginia from here, for DC from here, and for Maryland 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.
Our “Taxable Income” line exists for the purpose of comparing the different state income tax rates. Of course, taxes are complicated and your own taxes will differ depending in deductions, dependents and other factors.
It appears that DC is the most expensive place to buy while you get the most bang for your buck in Maryland. However, some real estate agents believe that condos appreciate quicker and are more likely to hold their value in DC than in Maryland or Virginia, which may justify the extra cost of buying in DC. Also, lenders tell us that it is cheaper to refinance in DC than in Virginia. A few other factors would change the monthly costs, like differing insurance rates, city taxes (like Takoma Park’s), Virginia’s car tax, and the cost of commuting, so use this as an introductory, but handy starting point for comparisons.
Commenters, what other factors could we add to this chart?
See other articles related to: arlington condo buyers, bethesda condo buyers, cost comparison, dc condos, dc versus arlington, dclofts
This article originally published at https://dc.urbanturf.com/articles/blog/the_cost_of_buying_revisited/5281.
Most Popular... This Week • Last 30 Days • Ever
Clarion Partners, the owner of the Chevy Chase Pavilion, has filed modifications to i... read »
The new development keeps humming along in DC's Buzzard Point.... read »
Where it's cheaper to build than buy; Elon Musk is not making Texas happy; and the wo... read »
New renderings show the public space that will be part of the huge new residential de... read »
If you are tired of getting lost in their stores, IKEA has a new location planned tha... read »
At an ANC 4A meeting on Tuesday night, representatives from Whole Foods said that the... read »
The application to raze the infamous fast food location at New York and Florida Avenu... read »
While homeowners must typically appeal by April 1st, new owners can also appeal.... read »
The application has been filed for the American City Diner along Connecticut Avenue i... read »
The 650,000 square-foot project, designed by Adjaye Associates and Hickok Cole, will ... read »
With this weekend's DC houseboat tour a day away, UrbanTurf thought it only fitting t... read »
President Obama travels to Denver this morning to sign the stimulus bill that has bee... read »
In this week's installment of Ask An Agent, a reader wonders if there is a rule for h... read »
As The Wharf prepares to begin construction, DC's houseboat community heads to its ne... read »
In this week's installment of Ask An Agent, a reader asks a fairly common question th... read »
- Plans Progress For a New Grocery Store at Friendship Heights Mall
- The Stacks, Brooklyn Bowling and a Vermeer: The 5 Developments on the Boards for Buzzard Point
- Friday's Must Reads
- New Renderings Show Retail Plaza, Park at 435-Unit Takoma Metro Development
- IKEA Opening Small Format, Delivery Only Location in Pentagon City
- Whole Foods at Walter Reed To Open This Summer
- The End is Here: Raze Permit Filed For Wendy's at Dave Thomas Circle
- How to Appeal Your DC Property Tax Assessment
- Raze Application May Spell The End For One of DC's Last Diner Buildings
- A First Look at the Five-Building Centerpiece of the St. Elizabeth's Redevelopment
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. Visit guides.urbanturf.com or start browsing below!
Intro guides for first-time home buyers
Awesome and unusual real estate from across the DC Metro