Who would ever think you would find an article by a Bristow real estate agent giving you tips on saving money while renting a home? Don’t pinch yourself. It’s for real.
While now is a great time to buy a home with interest rates being at historic lows, it is never a good time to buy a home if you are not financially prepared for the purchase. Part of being prepared is being able to make your closing costs and down payment. So let’s talk about how you can save in Bristow with rental homes.
What Will You Find for Rent in Bristow?
Bristow homes for rent range from about $1,400 per month for a two-bedroom, one-bath townhouse to upwards of $2,800 per month for a large single-family home with five bedrooms and three or more bathrooms. You can occasionally find a Bristow home for rent that is not the entire home, but a portion of the home. For instance, I recently saw a one-bedroom, one-bathroom princess suite listed in Bristow for $650 per month.
When you are renting in the Bristow, Va. real estate market, you can take the opportunity to save for your eventual home purchase. After all, the landlord pays for HOA and condo fees. They also pay for repairs to the home after your repair deductible. Saving money should be your top priority when renting.
Saving for a Home Purchase
As interest rates have bottomed out, rental prices have been steadily increasing. You’d be a fool to not get out there and save money toward purchasing a home. So what are some things you can do to save up?
- How about cutting back on that Starbucks or Caribou Coffee habit? There’s about four to six bucks a day that can go right into your savings account. By making your coffee at home, you could save $120 in a month, or $1,440 in a year. And that’s just by eliminating a daily outing for coffee.
- What about making a change to the lunch you eat out during the work week. The average Bristow resident probably spends about $7 a day on lunch. That’s $35 a week, or $1,820 in a year. By just packing your lunch and making your own coffee you could save over $3,000 in a year. That’s an earnest money deposit for a contract on a townhouse!
Watching where you are spending your money can account for a lot of waste in your budget and even allow you to pay yourself first out of your paycheck. We’ve all heard that we should be saving 10 percent of what we earn. Concentrating on putting something aside from each paycheck and into a savings account would certainly go a long way toward having 3.5 percent of the purchase price to put down on a Bristow, Va. home. If the average Bristow home sells for just under $329,000, then you’d need less than $11,500 for a down payment.
Tips for Financing Bristow Real Estate
Here’s some even better news. Did you know that most of Bristow is considered eligible for 100 percent financing under USDA loan programs? Bristow, Va. is considered a rural area, and even buying a townhouse in most areas of Bristow will be possible without a down payment. That’ s right! You don’t need to be a military veteran to enjoy the benefits of 100 percent financing. Buying Bristow real estate, in qualifying USDA areas, means all that money you saved can go toward closing costs.
The average Bristow real estate purchase takes about 3 percent of the sales price in closing costs. That’s nearly $10,000. Sure, you can ask the seller to pick up your closing costs, but as the Bristow real estate market has gotten more and more competitive, buyers are able to make their offer more attractive by funding their own closing costs.
You truly can save in Bristow with rental homes, as long as you have a plan and watch your budget. Don’t over indulge in unnecessary expenditures and always put money aside from your paycheck. You’ll be a Bristow, Va. home owner before you know it.
Written by Chris Ann Cleland, Associate Broker, Long & Foster REALTORS®, Gainesville, Va.