By Peter Psotny - August 10, 2017
Should I buy or rent?
It’s an ever present question in real estate because the answer is constantly changing based on the market as well as your personal situation. There are certain factors that play into making a decision that looks practical on paper. A calculator like this will help you account for all the potential costs in a rent vs buy comparison. But, not all important factors fit nicely into an equation.
The Housing Market
Faced with the choice between skyrocketing home prices and outlandish rental rates, Denver residents may be tempted to crawl down into their parents’ basements and avoid real estate all together. While the housing market does seem a little crazy and it’s hard to predict how long it will last, we can assess the current trends.
Home values continue to appreciate with no slowdown in sight, while mortgage rates remain reasonable. This means you can still consider home ownership an investment you’re likely to make a return on.
With rental rates at an all-time high, a mortgage payment may actually be the more affordable option. Why put your hard earned paycheck towards building your landlords equity when you could put it toward an investment of your own?
Preference and Lifestyle
Commitment - Generally, the longer you plan to stay in a home, the more likely you are to make a profit when you sell. In this market, though, it doesn’t take long. You may be able to make a profit on your home after owning it for as little as a year.
Maintenance – Home ownership isn’t for everyone. Are you ok with the cost and effort involved in routine upkeep, basic repairs, and surprise incidents or do you prefer to have those things taken care of by a property manager?
Location – In some cities, being able to afford a home in a location with particularly good resale value is a concern. But, with all of the new development going on and the convenience of the light rail, almost every corner of Denver is appealing to one demographic or another.
Still can’t decide which option is right for you? Call 720-220-2059 to talk to the experienced real estate agents at Colorado Home Sales, Inc. today.