It’s an age-old question. Should I rent a home or buy a home? Traditionally, buying a home has been part of the American dream, but renting is becoming increasingly popular in the Denver area as the recession lingers on.
The Denver Post recently reported that the number of apartment vacancies has decreased throughout the Denver metro area, decreasing from 9 percent in 2009 to 6 percent this year. Rents are also rising – the average rent in the Denver metro area is now close to $900.00. This means that many people are renting, but is this always the best decision?
Here are a few pros and cons of renting versus buying in Denver:
Why Buy a Home in Denver?
- If you rent a home, you are missing out on the lowest interest rates in 50 years. A Denver homebuyer’s buying power is greatly increased right now, since interest rates for a 30-year fixed mortgage are lingering around 4.5%. We may never see interest rates that are so low ever again.
- You can deduct mortgage interest paid from your income taxes. With a 30-year fixed mortgage, you are also paying down the loan’s principal every month.
- There is something special about owning your own home – it’s a feeling of pride that just doesn’t come with renting a property.
Why Rent a Home in Denver
- If you don’t like risk, renting may be for you. As recent years have proven, home values can decrease. However, if you rent, you may miss out on future appreciation opportunities.
- If you are renting a home, you don’t have to pay for home maintenance items, which can add up.
- Renting gives you more flexibility – if you want to move, all you need to do is pack up when your lease ends, versus needing to sell your home if you own it.
For more advice on the differences between buying and renting a home in the Denver area, please contact TeamCox Realtors – Denver real estate specialists – at 303-400-6060. We will help you make the best decision, regardless if it is renting or buying.
Denver Real Estate Update – August 2010
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If you are looking for a home in Denver and the surrounding area then contact TeamCox for professional Real Estate Assistance