It is a record year for Denver real estate, so is it a good decision to buy at this time?
On the positive, interests are at a record low, so loans are very cheap. It is a great time to get into a Fixed Rate Mortgage Loan. On the contrary, demand is high and supply is low in Denver, meaning prices are at high and rising steadily.
According to CBS Money Watch as of March 2016, Colorado is ranked as the 2nd Best State to buy a home this season. Property taxes are at .61%, the Average Mortgage APR is 4.09% and the Median Listing Price is $350,000.
Pros of Renting
-Flexibility: It is easy to move on if you are unsure of how long you may be in an area.
-No property taxes: But, keep in mind that when your landlord is paying property taxes, your monthly payment is probably helping pay this fee.
-No maintenance to renting a property: The costs of repairs do not fall on the renter.
Cons of Renting
-Steady Incline: Rent can increase and, especially now, have been increasing quickly and steadily.
-Your future is uncertain: At the end of your lease, the landlord does not have to renew.
-Buy, buy money: You are throwing out your money and do not have an ability to build equity. Overtime, no matter how you cut the pie, you will be spending more if you rent.
Pros of Buying
-Personalization: You have the freedom to personalize your home. You can do whatever you want to a house if it is yours. So, paint, tear down walls, update fixtures to your heart content.
-Stability: Especially if you choose a Fixed Rate Loan, your monthly payment will not increase annually.
-Go Bigger: Every time you have to pay, at least you are building equity. This comes in handy in the long run when your house has appreciated and you may want to buy a bigger home or refinance.
-Deductions: You can deduct the cost of your mortgage loan from your taxes. This includes property taxes.
Cons of Buying
-Disposable Income: You need to have money to make a downpayment.
-Fees: Selling a home costs money. You will have to pay a realtor fee and usually might have to update the home in order for it to be sell-ready.
-Repairs Fall on You: You are in charge of repairing your home. If something breaks or the yard needs fixing up, it is up to you to pay those fees.
I am a real estate professional, serving Boulder and Denver, Colorado. My extensive knowledge of the market, coupled with my commitment to provide extraordinary service, has resulted in hundreds of successful transactions. Let me help you buy or sell your home.