Whether it is better to rent vs buy in Denver is a question that just about every renter asks at some point in time. After all, owning your own home remains the goal for many. But owning a home isn’t always an option and in some cases isn’t the greatest move you can make. So when is it better to rent vs buy in Denver? Start by asking yourself these three simple questions.
Rent Vs Buy in Denver: 3 Questions to Ask Yourself Before You Make Your Move
Can I Afford to Save?
Owning your own home is no cheap investment. Not only do you need to save up for a down payment, but you also need to save for expenses that come after closing. Homes require routine maintenance. Systems need repair or replacement. When you’re the homeowner, there’s no one left to foot the bill but you. Do you have the ability to save up enough of an emergency fund to cover both routine and emergency costs? If not, you may be better off renting.
Is Moving in My Future?
Renting offers flexibility that owning a home does not. It’s a lot easier to make a move when your commitment is limited to a year or two vs 30. Not to mention the process to sell your home isn’t always a speedy one. Selling a home takes time between listing it for sale and finally closing. Are you prepared to wait?
Then comes the difference in cost. If a sudden move is in your future soon after purchasing your home and you don’t want to rent it out, will your home have appreciated enough for you to make enough of a profit? Remember, not only will you have to pay off your mortgage, but there are realtor fees, closing costs, etc. to take into account as well. That’s where we tie back into the question of affordability. Sometimes the best decision in this scenario would be to rent vs buy.
What’s the Housing Market Like?
If you follow any kind of real estate news, you know that Denver’s buy and sell market is on fire. Inventory remains low, prices have soared upwards, and competition has reached new levels of crazy. And if you’re a first-time homebuyer, finding the right home can be as much of a challenge as affording it.
Long Story Short
Renting is a great option for everyone. Not only does it offer flexibility, but it can often be the more affordable option for many searching for a new home. When you take into account the additional commitments and requirements it takes to own your own home, choosing the rent instead can be a lot more appealing. But deciding whether to rent vs buy in Denver isn’t a cut-and-dry decision for everyone. Be sure to take into account your own financial situation as well as your long-term and short-term plans.
And if you’re looking for a home to rent, check out our available rentals