If you’re planning to move into your first (or next) home, it’s important to look into the different aspects of rent vs buy.
Rent vs Buy[responsive_video type=’youtube’ hide_related=’1′ hide_logo=’1′ hide_controls=’1′ hide_title=’1′ hide_fullscreen=’1′ autoplay=’0′]https://www.youtube.com/watch?v=PNQr0QXN8G0[/responsive_video]
There are a few major considerations to look into before taking the decision to buy vs rent your (next) home:
- Cost Factor: the monthly rent used to be less than the monthly mortgage payment on a similar home in the same area. Currently however the opposite is true in the Denver area: it is cheaper to own a home than to lease a home. Nevertheless buying a home usually has a higher barrier vs renting, such as down payment and loan qualification.
- Time frame: as a rule of thumb, buying only makes sense when you’re planning to stay in the home for 5 years or more. Only after that time are the costs associated with transferring real estate outweighed by the gains due to appreciation and possible tax savings. At this time the Denver market shows such fast appreciation that owning a home makes sense over shorter time frames as well.
- Flexibility: when you own a home you won’t have the same ability to pick up and move when your situation changes. Renting is also less of a financial commitment.
- Additional Costs: owning a home costs money: upkeep, maintenance, property taxes, repairs, insurance …
- Equity: only homeowners build equity and get tax incentives
Another great way to figure out the dilemma of rent vs buy is to look at what’s currently for sale, determine the price range of your lifestyle and contact us to find out if you can get the necessary financing to buy what you like!
In the following video Elizabeth Banks also shares some tips on how to find out if you’re ready to buy and shares some pros and cons of rent vs buy.[responsive_video type=’youtube’ hide_related=’1′ hide_logo=’1′ hide_controls=’1′ hide_title=’1′ hide_fullscreen=’1′ autoplay=’0′]https://www.youtube.com/watch?v=8TQC987BSiU[/responsive_video]