Home Inspection Checklist
Washington City Paper released it's annual collection of charts, stats, and infographics about life in D.C. This year included some pretty cool graphics that cover topics from the city's population break down to the most popular Smithsonian destinations. Check out the latest District of Data
Whatever your thoughts may be about the Trump tax overhaul, we can all agree that DC’s recent change to the recordation tax is a winner for folks buying their first DC home. Of course there are certain requirements that must be met to qualify, but the savings are real…about $3,600 on a $500,000 home.
What’s This All About?
A buyer typically pays about 3% of the purchase price to cover closing costs, which consists of taxes and fees paid to the city, lender, and the title company. DC charges a Recordation Tax of 1.1% of the purchase price on homes under $399,999 and 1.45% on homes above $400,000. However, as of October 1, 2017 the new recordation tax is reduced to 0.725% for those who qualify.
Who Qualifies?
• Must be purchasing a residential property in DC as your primary residence
• Must have never owned a property in DC
• Purchase price must be below $625,000
• Income restricted to $139,140 for one person and $158,940 for two people
• Submit an application for the DC Homestead Tax Exemption, which will also knock about $600 off your annual property tax bill
What’s the Catch?
You have to apply for the tax break! Sadly, I’ve heard too many horror stories of buyers who were never made aware of the program, so be sure to work with an experienced real estate agent.
Source: https://otr.cfo.dc.gov/publication/otr-tax-notice-2017-07-reduced-recordation-tax-rate-first-time-homebuyers
The Washington area's grocery options are expanding, and the region's dominant players - Giant and Safeway - are steadily losing market share. Whether moving into new construction or taking over big box stores, check out the Wash Biz Journal's new wave of supermarkets.
Interest rates are historically low, so it's no surprise that mortgages are more affordable now compared to 20-30 years ago. My parents bought their Bowie home in 1983 with a 17% interest rate!
A new Zillow report just found that DC area renters spend $8,313 more annually on housing than they did historically. Renters in the DC area pay 26.1 percent of their monthly income towards rent, 8.5 percent more than they would have spent in 1985-2000. Conversely, the new report concludes that U.S. homeowners pay $3,300 less in mortgage costs annually than they did in 1985-2000. Check out the study and #StopRenting #StartOwning