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To buy or not?

The rental market has gotten increasingly competitive as people wait out the economy

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The decision to rent or buy a home is a highly personal one. It includes many factors such as the status of your savings (or access to gift funds from a family member or friend), preference for housing location, job stability or expected length of residency in your geographic location as well as many others.

Here in the Washington area, we are blessed with a relatively stable economy and housing market. While we see shifts and changes in the market at times, the market has been mostly consistent compared to other cities around the country and it has progressed without major declines.

This can be attributed to a wealth of federal jobs, which provide steady incomes and strong job security, as well as an extremely high percentage of residents with college degrees, which in most cases translates to higher incomes. According to CNN Money, D.C. workers enjoyed the highest salaries of any major U.S. city in 2010 with a median household income of $85,198. Additionally, there is a constant transition in Washington with many people moving in and out of the area each year from other towns and cities. All these factors combine to sustain a healthy housing market, even in the midst of national economic problems.

Generally speaking, if you are planning to live in a certain location for around five years or more and you have a stable income, you should consider making a home purchase. Right now interest rates are at a historic low making money “cheap” and allowing for lower monthly payments than in recent years. Also, being a homeowner saves you money in taxes, which can be enjoyed on your total tax bill or can be adjusted for each paycheck based on your deductions. If you live within the District of Columbia, first time buyers also qualify for a $5,000 tax credit which comes off your total tax bill, allowing for an additional savings to the general homeowner savings.

Rents are also on the rise in our area, making buying a home an even more attractive prospect. Since more would-be first time homebuyers are “waiting out” the economy and housing market problems, the rental market has become saturated, making it more expensive and more difficult to find a rental. As a test case, I looked at one-bedroom rentals in Dupont Circle that have rented in the past 90 days. In that time, nine properties have rented – each of them in 15 days or less for an average of six days on market. Four of the nine even rented within the first day.

The prices for these properties ranged from $1,800 to $3,050, with an average rent of $2,450. All of them except for the most expensive of the bunch rented for full list price. In previous years when the rental market was not as strong, renters had more flexibility in negotiating for a lower price and often were not competing with multiple applications. Today, most properties see multiple rental applications, allowing landlord to be more selective and causing more difficulty for renters, especially those who have pets or do not have perfect credit.

Conversely, purchasers are still getting great deals on home purchases and as mentioned previously, have the opportunity to buy with the lowest interest rates in history. While we are starting to see some multiple contract situations and even some escalation clauses for home purchasers, these are still not the norm and buyers can still find good properties at good prices.

For example, a recent client purchased a one bedroom/one-and-a-half bath condo in excellent condition in the Kalorama Triangle neighborhood of D.C. for $399,900. Using an FHA loan, they were able to put down 3.5 percent and now have a monthly payment (including the condo fee) of roughly $2,350 – $100 less than the average rental in that area. The monthly savings would be even more significant if they were to do a conventional loan with 20 percent down. When you add in the $5,000 first time homebuyer credit plus about a $350 per month in tax savings just for owning a home, this is a great investment.

If you are debating whether to rent a home or to purchase one, it is always a good idea to talk to both a real estate agent and a lender to review all the options and see what makes the most sense for your personal and financial situations at the given time.  If you have any questions about the article or the housing market in general, please don’t hesitate to contact me – I am always happy to help.

Sue Goodhart is the top-producing agent at McEnearney Associates in Alexandria and is licensed in D.C., Maryland and Virginia. She can be reached at 202-507-7800 or sue@suegoodhart.com.

 

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Autos

Two awesome, affordable rides

Kia K4 and Nissan Kicks are more than budget friendly

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Kia K4 hatchback

Remember when buying a new car didn’t require the financial stamina of a “Succession” character? This summer, the average new-vehicle price hit $49,758—basically $50,000 with a little lipstick on it. That makes the Kia K4 hatchback and Nissan Kicks especially refreshing. Neither requires a second mortgage, a trust fund or a makeover to look good. And both prove you can still buy a new vehicle without selling your soul — or your vacation plans.

KIA K4 HATCHBACK

$25,000

Mpg: 28 city/34 highway

0 to 60 mph: 9.1 seconds

Cargo space: 22.2 cu. ft. 

PROS: Edgy exterior. Roomy interior. User-friendly controls.

CONS: So-so base engine. Pricy turbo. No all-wheel drive.

WHAT’S NEW: Basically everything. The K4 hatchback debuted earlier this year, joining the K4 sedan. 

Kia’s stylish five-door K4 boasts three trim levels. The first two use a capable four-cylinder engine, while the top-of-the-line model comes with a turbo.

That turbo provides some genuine zip, though it won’t blow your socks off. Think Janelle Monáe in a tailored suit, not Brad Pitt arriving at the F1 racetrack in a fireproof jumpsuit.

The real star, though, is the design. Sleek. Upscale. A tad mysterious. 

Inside, another surprise: vast legroom and storage. Fold the backseats and you can toss in the usual road-trip clutter, plus that regrettable piece of furniture you bought after watching one too many HGTV shows.

Technology is also a bonus, including a digital key that lets you use a smartphone or smartwatch as a direct key fob. You can even share this digital key with friends or family. Just don’t share it with anyone who often loses their actual keys.

Despite some SUV vibes, the K4 remains unapologetically car-like. It sits lower. Feels more conventional. And offers hatchback practicality without itching to conquer the Rockies.

The biggest downside? No all-wheel drive.

Still, for shoppers who crave style, space and gadgetry, the K4 won’t break the bank. To me, it’s like finding a designer jacket at a thrift shop.

NISSAN KICKS 

Nissan Kicks

$23,000

Mpg: 28 city/35 highway

0 to 60 mph: 8.9 seconds

Cargo space: 23.9 cubic feet

PROS: Dashing design. Safety gear galore. All-wheel drive.

CONS: Bit pokey. Noisy engine. Limited rear visibility.

WHAT’S NEW: Redesigned last year with a bit more power, bigger cabin and bold looks, Nissan leaves the winning formula alone.

Like the Kia K4, the Nissan Kicks comes in three trims levels. But it also includes all-wheel drive — a nice plus when navigating snow, sleet or cratered alleys. 

There’s an extensive suite of active and passive safety features. And the high ground clearance improves driver visibility, which is somewhat hindered in the back by thick roof pillars. 

Styling is tastefully flamboyant. Dramatic lighting. Two-tone finishes. Cheerful, without being cartoonish. Miranda Priestly would approve. 

Power, though, is more akin to Miranda’s art director Nigel Kipling. Dependable. Functional. Just not enthusiastic.

Inside, the mod cabin has large 12.3-inch displays, wireless smartphone connectivity and charging, and “zero gravity seats” designed to reduce driver fatigue and stiffness. Add in the stunning Bose Personal Plus audio system, with 10 speakers—including those integrated into the headrests—for an immersive 360-degree sound experience.

The Kicks doesn’t try to be rugged or luxurious. It simply offers a lot of everyday usefulness in a small package. 

There is a trade-off. The engine gets noisy when pushed, and there are sportier (often pricier) competitors. But that’s hardly a crime. Not every vehicle needs to perform catwalk struts down the street. 

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Advice

Should I divorce my catty gay friend group?

They’re mean but I’m afraid to be alone

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(Image by Andrew Rybalko/Bigstock)

Hi Michael,

When is it worth stopping being friends with someone, or more than one person?

Lately I feel like my friends aren’t being very nice to me. In fact it reminds me of high school, and junior high school, when I was being bullied.

I’m not the most attractive in the group, I know that. They are always ribbing me about not working out enough or that I should get a hair transplant (I am balding) or making fun of the way I dress. I am not that stylish, I just don’t have a good sense for clothes. I thought about asking for some advice but I worry that would just lead to more mocking.

That I am not having as much sex as they are—it’s actually my preference, but of course I get comments about not being able to get someone to hook up with because of my appearance, clothes, low-key personality etc.

As I’m writing this I could go on and on. I think I’ve just tried laughing with them or ignoring it, but it does really get to me. 

There’s a standard in this town that I know I don’t fit. Great body, handsome face, overall hot, witty and sarcastic sense of humor, make a lot of money in some impressive job. I am sure you know the type I am describing. 

Some of the things I can’t help (appearance), some I don’t really want to fix (hooking up a lot). My brother died of an overdose so I don’t use drugs or alcohol, which, no surprise, evokes more judgment. 

My job is my job, I like it a lot and it is meaningful to me but I’m never going to be rich.  

The problem with that is, all my friends like to take a lot of expensive vacations. I can go on some but not on all. When we go I am watching my expenses, which provokes more judgment and jokes, always delivered as if they are “kidding” but it hurts.

I started off by saying I feel like I’m back to being a bullied kid. You know, laugh it off so that they don’t see you crying. But it doesn’t feel like I am respecting myself when I do that.

If I speak up and ask them to stop, I just get more jokes. I am NOT taken seriously.

The idea of walking away is scary, though. Who else would I have to spend my weekends with? I am afraid of being lonely. 

I could write more but I think I’m conveying why I am feeling pretty hopeless about these friendships.

Michael replies:

I think it’s a bad idea to spend time with people who are mean or abusive toward you.

But before you walk away from your friend group, do you think it’s worth talking to them, individually, or as a group? In a serious way, without joking, laughing, or minimizing your pain so as not to make them uncomfortable. 

Their behavior sounds very junior high school, but they are adults. Telling them how their behavior affects you might lead them to confront themselves, but it might not.

You didn’t write anything about what you actually like about these friends. Is it just that they allow you to spend time with them? Or do they have some good qualities? Getting clear about this would help you figure out if you want to push for change here.

I know what you mean about “the standard” in D.C. (and very likely in other locations).  I hear from clients over and over about the hierarchy of attractiveness and success. When people don’t feel they measure up, it is easy to feel less-than, and invisible. 

There are lots of reasons why gay men can be mean to other gay men. (Of course, everyone can be mean, and for all sorts of reasons). One biggie: it’s nice to feel like part of the in-crowd, after growing up feeling like an outcast. But this means establishing a pecking order so that there are others to look down on and exclude. It’s understandable, all too common, and unkind.

It’s also true that the heterosexual world tends to value beauty in women and financial success in men. Gay men hit themselves with a double whammy, glorifying both.

Still, you’re not going to single-handedly change the problematic aspects of gay culture.  You may be able to influence some of your friends, however. That remains to be seen, and would take some courage on your part if you want to tackle that.

It does sound like it’s time for you to make some new friends. This may seem even more scary than speaking up to the friends you have, but it also might give you a sense that you are taking control of your life.   

True, in D.C. (and elsewhere), there are a lot of gay men focused on the attributes you say you lack. But “the scene” is not the only game in town. There also have to be a good number of guys out there who are looking for other qualities that you may possess, and that you may also admire in others. These are the people for you to find and befriend.

I can’t tell you exactly how to go about that. You’re going to have to be creative and try some new things. Activity groups, hobbies that involve other people, sports. You never know whom you might meet, where. Don’t forget that you might enjoy meeting and hanging out with people who aren’t gay, as well.

You didn’t mention anything about looking for love in your life. Maybe that’s not your interest; maybe you don’t feel like adequate partner material (if so, I hope you will work to challenge that belief); or maybe you’re doing just fine in that area. I don’t know.  But if you would like to find a good guy, I hope that widening your field will help.

Michael Radkowsky, Psy.D. is a licensed psychologist who works with couples and individuals in D.C., Maryland, Virginia, New York, and all PSYPACT states. He can be found online at michaelradkowsky.com. All identifying information has been changed for reasons of confidentiality. Have a question? Send it to [email protected].

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Real Estate

With gas prices soaring again, a staycation is a good plan

Home can be your personal retreat and your own private resort

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Retreat to your own deck or backyard for an affordable, stress-free staycation. (Photo by Artazum LLC/Bigstock)

When airfare costs more than your monthly utility bill and a weekend road trip requires a second mortgage just to fill the gas tank, many homeowners are discovering an unexpected luxury: the staycation.

A staycation isn’t settling for less—it’s reaping the benefits of one of the biggest investments you can make: your home. Much more than a place to sleep, it’s your personal retreat, your gathering place and, with a little preparation, your very own private resort.

Whether you own a single-family home, a townhouse, or a condo, creating a memorable staycation starts with appreciating what made you fall in love with your property in the first place.

Start with a home refresh. Think about checking into a beautiful vacation rental. It’s spotless, organized, and inviting. You can recreate that same feeling by spending a day preparing your home before your staycation officially begins.

Clear away clutter, deep clean the bathrooms and kitchen, wash the windows, and put fresh linens on every bed – even if you’re not expecting guests. Fluff the pillows, light a favorite candle, and place fresh flowers on the table. These small touches instantly make your home feel more luxurious.

If your budget allows, hiring a professional cleaning service can be one of the best staycation perquisites you make. After all, vacation should begin the moment you wake up and not after you’ve spent the day scrubbing floors.

Treat your staycation like a real trip. Set away messages on your phone and out of office notices on your email. Skip unnecessary chores for a few days. Giving yourself permission to relax may be the most valuable part of the entire experience.

One of the greatest advantages homeowners have over travelers is private outdoor living space. Whether it’s a spacious backyard, a screened porch, a rooftop terrace, or a cozy condo balcony, these areas can become the centerpiece of your staycation.

Stringing lights and adding comfortable seating, colorful planters, and outdoor rugs can completely transform the atmosphere without spending thousands of dollars. Add a portable fire pit, a tabletop fountain, or a hammock, and suddenly your backyard starts competing with many resorts.

Host an evening cookout, organize a game night, invite neighbors over for dessert, or gather around the fire pit for conversation after sunset. These simple moments often become the memories we treasure most.

Inside, transform your family room into a home theater complete with popcorn and comfortable blankets. Turn your breakfast room into a morning coffee café. Designate a quiet reading corner where phones are prohibited. Create a spa-like bathroom with plush towels, candles, bath salts, and relaxing music.

One of the highlights of traveling is experiencing new food. Instead of dining out every night, create themed dinners inspired by your favorite destinations. Prepare homemade Italian pasta one evening, Caribbean grilled seafood another, or a backyard Texas barbecue over the weekend. For a touch of whimsy, dress the part.

Pair each meal with music and libations from the region and enjoy dinner outdoors whenever possible. Suddenly, your dining room becomes part of the vacation experience instead of just another place to eat.

Families with children can turn a staycation into an adventure by seeing their home through a child’s eyes. Set up a backyard camping experience with a tent, flashlights, and s’mores around the fire pit. Transform the living room into an indoor campground complete with sleeping bags and a movie under a blanket “fort.” Organize a backyard Olympics with relay races, water balloon tosses, scavenger hunts, or miniature golf using household items. 

Encourage children to plan a family picnic in the backyard or on the patio, choose a theme for a movie marathon, or help prepare meals inspired by countries they’d like to visit someday. The goal is to create experiences your children will remember long after summer is over.

Enjoy the amenities you already pay for. Condominium communities and many planned neighborhoods offer amenities that residents often overlook.

Swimming pools, fitness centers, tennis and pickleball courts, walking trails, clubhouses, grilling stations, and community gardens are designed to enhance your lifestyle. During your staycation, make a point of exploring everything your community offers. You may discover you’ve been living beside your own private resort all along.

Real estate professionals often talk about resale value, appreciation, and return on investment. While those things certainly matter, there’s another return that’s harder to measure: the enjoyment you get from living in your home every day.

You don’t need a boarding pass to recharge. You don’t need a hotel reservation to make memories. Sometimes the perfect getaway is the one you already own.


Valerie M. Blake is a licensed Associate Broker in D.C., Maryland, and Virginia with RLAH @properties. Call or text her at 202-246-8602, email her at [email protected] or follow her on Facebook at TheRealst8ofAffairs.

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