Colorado Specific Renting Vs Buying

Dated: 09/23/2014

Views: 872

So you’re living in a two bedroom apartment with your close friend or spouse paying $1400 a month in rent (at least).  Money is tight, your rent seems to jump with every new lease you sign, and you have nothing to show for it.  If you had the chance to pay less in monthly payments, and have ownership of a home would you?

It may sound crazy but home ownership is a lot simpler than you think. With new loan programs out there, co-signs, and down payment grants, home ownership is more accessible than ever.  Essentially if you were to qualify or an FHA loan as well as one of the grant programs you could buy a home with little to no upfront payments such as down payments or closing fees.

So why is owning a home worth it? 
First off, it is actually cheaper to pay an average mortgage than to pay average rent.  A new study shows that typical local renters are spending 31.8 percent of their income on the median rental, compared to 21.6 percent historically; making rents 47.2 percent less affordable than historic norms.  On the contrary, buyers in the area on average spend 18.9 percent of their income on the median home, compared with 21.6 percent historically, meaning that buying a home is 12.3 percent more affordable than historic norms.  If that doesn't excite you than I don’t know what would! 

But that isn't all, with ownership you get just that.  You have the freedom to do whatever you like with your new home.  No longer will you have to put up with that eye sore of a wallpaper that your landlord refuses to let you take down!  But with ownership you also become an investor believe it or not!  Prices of homes will always rise and never drop below 20% of their value.  (Don’t believe me? Ask your local lender!  That is why they typically ask for a 20% down payment to cover up their possible losses.) With that in mind, timing now becomes of the essence. 
Right now we are coming out of the recession and the housing economy is starting to take off.  This fact is twice as true in Colorado.  Home prices are at a historic high; even higher than before the recession. This is expected to rise for years to come as the economy climbs back up to where it should be.  So here is where the investing comes in.  Home prices have increased 6.3% in the past year.  It would be ignorant to say prices will continue to rise that fast, so let’s modestly say they climb 8% in the next 5 years, that would increase a $200,000 home by $16,000!  Now let’s say in the best case scenario they climb 15%, then that $200,000 house increases $30,000.  This is just free money to be made so what’s holding you back?
Now I understand that renting is convenient because you don’t have as much responsibility.  Not only that but you may have never known that ownership is a possible option.  But I would challenge you to take a piece of paper, divide it into two columns, and write down the pros and cons of renting and buying. Now you have a visual to look at and see what the better option is for you.  If buying a home seems like something you might interested in give me a call and we can go ahead and set you up; even if you don’t have the best credit and you don’t think you could qualify, because the best way to build your credit is to get set up with a professional lender who is willing to help you out, and I work with some of the best.

Denver, Colorado Homes For Sale. Josh Bohney a real estate broker associate that will help buyers, sellers, and investors with their real estate interests in the south Denver area.  These locations include Littleton, Highlands Ranch, Centennial, and Englewood. For more information contact: Josh Bohney 303-588-6764
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Sheryll White

As a Full Time real estate agent for the past 23 years, Sheryll has helped hundreds of home owners in Colorado buy and sell their homes. Sheryll's easy going, no pressure style and her in depth knowl....

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