<?xml version="1.0" encoding="UTF-8" ?>
<rss version="2.0" xmlns:atom="http://www.w3.org/2005/Atom">
    <channel>
        <atom:link href="https://www.cparkre.com/blog/2018-02/rss/" rel="self" type="application/rss+xml" />
        <title>The Capital Park Team Blog</title>
        <link>https://www.cparkre.com/blog/2018-02/</link>
        <description>Washington DC Real Estate, Neighborhood News, and Culture</description>
<item>
    <guid>https://www.cparkre.com/blog/georgetown-rowhomes/</guid>
    <link>https://www.cparkre.com/blog/georgetown-rowhomes/</link>
        <author>ben@cparkre.com (Ben Puchalski)</author>
        <title>Georgetown Rowhomes</title>
    <description> <![CDATA[ 



Thanks to a construction boom following the American Civil War, the dominant housing style in Georgetown is the brick rowhome. Whether you call them rowhomes, row houses, or townhouses; these attached and semi-detached dwellings are icons of class and charm and they do not come cheap. The modest, 1895-built house at 3419 Q St NW where John F Kennedy and Jacqueline Bouvier first met just hit the market for a cool $1,725,000.


The majority of Georgetown rowhomes are Federal or Victorian in style and are quite tastefully unique--many with English basements, offering considerable rental potential. As is the case in many of DC’s historic districts, architectural variance becomes a viable motif, provided that the buildings are well preserved. Georgetown is perhaps the most stringent neighborhood in the District with regard to preservation and planning.


An obvious draw of Georgetown rowhomes is walkability. Georgetown’s industrial past (tobacco, flour, paper, etc.) led to the convenient proximity of housing and business, and the commercial corridors of Wisconsin Ave NW and M St NW are never far away.


It is easy to associate rowhomes with a lack of space, but in Georgetown, this is far from accurate. Many Georgetown rowhomes were planned and built individually or as part of a small set, rather than the more uniform rowhomes of the District’s younger neighborhoods that go on for blocks at a time. Check out this prominent triple-aspect house at 2928 P St NW, boasting over 5,100 square feet. It is quite common for rowhomes to extend closer to or farther from the street than their neighbors, creating a sideways topography that adds to the neighborhood’s historical charm.


The attached nature of these gorgeous houses simply highlights the popular desire to live in Georgetown. Rowhome owners are well poised to float effortlessly between well-earned peace and quiet, and the urban buzz, community, and history that led them to call Georgetown home in the first place. One could even say that The District of Columbia itself was born in a Georgetown rowhome. The dinner that included the sale of land for the Federal City was hosted in the Forrest-Marbury house at 3350 M St NW.


GUIDE TO GEORGETOWN



Georgetown Real Estate | DC





 



Search Nearby Neighborhoods


BERKLEY | BURLEITH | CATHEDRAL HEIGHTS | CLARENDON | COURTHOUSE | DUPONT CIRCLE | FOGGY BOTTOM | FOXHALL VILLAGE | GLOVER PARK | KALORAMA | KENT | PALISADES | ROSSLYN | SPRING VALLEY | WESLEY HEIGHTS | WEST END
 ]]> </description>
    <pubDate>Fri, 23 Feb 2018 10:28:00 -0500</pubDate>
</item>
<item>
    <guid>https://www.cparkre.com/blog/how-will-tax-reform-affect-the-dc-area-real-estate-market/</guid>
    <link>https://www.cparkre.com/blog/how-will-tax-reform-affect-the-dc-area-real-estate-market/</link>
        <author>ben@cparkre.com (Ben Puchalski)</author>
        <title>How Will Tax Reform Affect the DC Area Real Estate Market?</title>
    <description> <![CDATA[ 



Early drafts of the Tax Cuts and Jobs Act slashed many of the tax incentives for homeownership. For generations of American families, owning a home has been a cornerstone of economic stability and wealth creation. During the tax bill revision process, the key question the National Association of Realtors lobbyists pushed lawmakers on was, “Do we want a country of renters or a do we want a country where people own their own home?”


Most of the changes to the tax law changes relating to DMV real estate market were either very incremental or left unchanged. The mortgage interest deduction is still allowed, except the new cap is $750K instead of $1 million. Real estate investors still retain investment deductions. The capital gains tax exclusion remains the same; you still have to live in a property for two out of the last five years to avoid paying capital gains tax on a primary residence and the tax-free-gains cap is still $250K for single taxpayers and $500K for jointly filing taxpayers. If you finance a second mortgage as part of your property acquisition or take out a  line of credit to improve an existing home, you can still deduct that mortgage interest. You can no longer claim a deduction for a second mortgage in excess of your acquisition financing, or take a deduction for a HELOC you don't use for home improvements. Finally, there is no longer a deduction for second homes.


The largest change in the tax law as it affects the DC area market is that the new state and local tax (SALT) deduction cap of $10K, where previously there was no limit. The new $10K SALT cap, coupled with the increased standard deductions of $12K for individuals and $24K for joint filers, is the biggest negative for those in areas with high property taxes and high housing prices. In short, fewer people will be eligible to claim itemized deductions, which negates some of the income tax incentives of ownership. A key point to keep in mind regarding this change is that well-heeled Washingtonians most affected by the SALT deduction cap are also the same folks who will have more take-home pay under the new tax law. Individuals in higher tax brackets are also more likely to own than their less well-off counterparts; under the new law, higher wage earners will have more after-tax income to spend on securing their piece of the American Dream.


Moving forward, there is no “one size fits all” rule that can be applied universally when it comes to calculating the tax benefits of ownership. The big question everyone is asking now is, “How will the tax revisions affect the DC real estate market?” The quick answer is, not very much at all.


Since emerging from the housing crisis, the main real estate story here in the nation’s capital has remained the same...There are too many buyers chasing too few properties. Today, that is still very much the case. Despite some small changes relating to income tax incentives, most Washingtonians still aspire to control a piece of real estate in one of the world’s most powerful cities. Renters still have plenty of reasons to take the leap into ownership: Paying off your own mortgage instead of someone else’s mortgage. The security of a fixed payment and putting roots down in one of DC’s many great neighborhoods. The forced-savings-plan that is a part of nearly every mortgage product. The potential for appreciation in a region that has even more going for it every year.


DC metro areas that offer a walkable lifestyle, access to high-quality jobs, access to public transportation, and access to great public schools should continue to see strong demand. Additionally, some major shifts in American culture are pushing demand in the DMV: Baby boomers are downsizing and ditching the car, young families are choosing more urban areas to raise their children, high paying job growth is focused on major urban centers where successful companies are most able to attract talent. As the local real estate market continues to grow and evolve, the city has become an increasingly vibrant, diverse, and exciting place to live.


We've made some very conservative estimates based on historical averages and broken down three scenarios for potential buyers and renters under the new tax law below.


$300K Purchase over 60 Months vs Renting





 

Rent

5 Down

20 Down



P&amp;I Payment


$1,525


$1,402


$1,181




Principal Paid


$0


$26,198


$22,062




New Tax Benefit


$14,400


$16,232


$14,400




Net Cost


$82,664


$61,443


$48,650




Total Equity


$0


$88,980


$129,844






Assumptions


Rental Increase: 3   |   Appreciation: 3   |   Tax Bracket: 24  |  Mortgage Interest Rate 4.25


This analysis was designed to display an example of the tax benefits of homeownership over a 60 month period. The first column shows the amount of rent and the second and third columns reflect estimated monthly payments for the proposed purchase of a new home.



$600K Purchase over 60 Months vs Renting





 

Rent

5 Down

20 Down



P&amp;I Payment


$2,725


$2,804


$2,361




Principal Paid


$0


$52,396


$44,123




New Tax Benefit


$14,400


$33,184


$28,794




Net Cost


$114,519


$122,769


$97,182




Total Equity


$0


$177,960


$259,687






Assumptions


Rental Increase: 3   |   Appreciation: 3   |   Tax Bracket: 24   |  Mortgage Interest Rate 4.25


This analysis was designed to display an example of the tax benefits of homeownership over a 60 month period. The first column shows the amount of rent and the second and third columns reflect estimated monthly payments for the proposed purchase of a new home.



$900K Purchase over 60 Months vs Renting





 

Rent

5 Down

20 Down



P&amp;I Payment


$4,075


$4,206


$3,542




Principal Paid


$0


$78,594


$66,185




New Tax Benefit


$19,200


$70,071


$55,467




Net Cost


$240,139


$155,367


$136,423




Total Equity


$0


$281,019


$389,532






Assumptions


Rental Increase: 3   |   Appreciation: 3   |   Tax Bracket: 32   |  Mortgage Interest Rate 4.25


This analysis was designed to display an example of the tax benefits of homeownership over a 60 month period. The first column shows the amount of rent and the second and third columns reflect estimated monthly payments for the proposed purchase of a new home.



Interested in Buying? Contact Us Today





VIEW DC NEIGHBORHOODS


Read more articles


Foreign Investors Buying in DC


What is Title Insurance?


How Does Credit Affect Mortgage Opportunities?


How to Build a Great Credit Report


First-Time Homebuyer Tax Benefit in DC


Bill Proposed to DC TOPA's Act


 
 ]]> </description>
    <pubDate>Thu, 01 Feb 2018 08:47:00 -0500</pubDate>
</item>
<item>
    <guid>https://www.cparkre.com/blog/most-expensive-homes-february-2018/</guid>
    <link>https://www.cparkre.com/blog/most-expensive-homes-february-2018/</link>
        <author>ben@cparkre.com (Ben Puchalski)</author>
        <title>Most Expensive Homes | February 2018</title>
    <description> <![CDATA[ 



Please note that all MLS listings are in real time. If the link is not working, it's because that property has been sold or is under contract. Don't worry, each month we compile the most expensive DC properties Check back soon or subscribe to our newsletter for automatic updates. If you have any questions about the listings below contact us.






All Luxury DC Listings






Contact Us With Any Questions About DC's Most Expensive Homes



 ]]> </description>
    <pubDate>Thu, 01 Feb 2018 07:10:00 -0500</pubDate>
</item>
<item>
    <guid>https://www.cparkre.com/blog/invest-in-dc-february-2018/</guid>
    <link>https://www.cparkre.com/blog/invest-in-dc-february-2018/</link>
        <title>Invest in DC | February</title>
    <description> <![CDATA[ 



Please note that all MLS listings are in real time. If the link is not working, it's because that property has been sold or is under contract. Don't worry, each month we send out the best investment properties Check back soon or subscribe to our newsletter for automatic updates. If you have any questions about the listings below contact us.





Interested in any of the properties above or would like a separate investors list? Contact us today



 ]]> </description>
    <pubDate>Thu, 01 Feb 2018 06:57:00 -0500</pubDate>
</item>
    </channel>
</rss>