Renting vs. Buying in Denver Colorado: Is it the Time to Buy a House?
Deciding whether to buy or rent a home is one of the biggest financial decisions that adults have to make. Is it better to buy or rent a house is a question that everybody has asked at some point. In the long run, owning a home is still cheaper compared to renting even though the gap between homeownership and renting is closing in areas across the United States. There are many complications and cost variations related to purchasing over renting, making it difficult to determine which option is the best.
Renting or Buying
Cost variations in renting and homeownership are completely different State to State. As an example, it is 5% cheaper to purchase a home in Honolulu, Hawaii and 43% cheaper in Denver, Colorado. So, is it the time to buy a house in Denver, Colorado? With certainty we can tell you that buying a home in Colorado is much more cost effective then renting. Rents are skyrocketing day in, day out due to the short supply of rental houses. Investors are not constructing new houses to cater for the growing population and there is a need for construction of more household units as more and more people are relocating to Denver at a very high rate. In the long run, purchasing a home is the best option — even if it may cost a bit more up front then renting a home would. One of the first things you should do if you are one of the many grappling with this tough decision is to look at the financial implications of both. To start, a Rent VS Buy calculator may assist you. The calculator will show you the amount of equity and investment you will earn, whereas with a rental home, you don’t earn any of that.
Flexibility or Stability?
Renting a home is flexible as it gives you time to study an area before making the decision on whether to buy or not. This flexibility gives you an opportunity to extensively explore a neighborhood. Since buying will keep you rooted to one location, if there is possibility of you moving to different a town or State due to job uncertainties, then renting is the better option. Since landlords normally do house maintenance and sometimes include some utilities, you are shielded of extra expenses that you may have incurred if you were a homeowner. On the other hand, with every payment you make on your home mortgage you boost your worth in the home and ownership rights. This gives you a firm financial foundation since you can make large purchases after settling the mortgage or if you have high equity in the house. You can use the equity to borrow money from banks and lenders and it gives you an asset that you wouldn’t have renting a home. Owning a home not only gives you purchasing power, it reduces your taxes and gives you freedom and independence to decide on how you decorate and maintain your house. Owning a home has always been called “The American Dream,” but it is not a decision to make lightly. If you are considering making the switch from renting a home to buying a home, make sure that you do your homework first. Owning a home is usually better in the long run, but in certain cases, renting is sometimes the best option.