According to a 2018 report from RENTCafe, roughly 53% of Denver residents own their home. If you are among the remaining 47% who pay rent every month instead of building equity, you may be wondering when is buying a house better than renting? Let’s take a look at some of the advantages of both renting and owning to help you decide if you’re ready to take the plunge into homeownership.
Of course, as real estate agents, we’d love to tell you that it’s always the right time to buy a new house in Denver, but owning is not for everyone at every stage of life. While in the long run, owning is definitely a wise financial investment, some lifestyles and budgets are genuinely better suited to renting. Here are two reasons that renting might be best for you right now.
One of the benefits to renting an apartment or house is that you are generally only locked into a contract for one year at a time. Whenever your rental agreement is up, you can decide whether or not it’s time to move.
This flexibility means that if you have a squabble with your landlord, can’t stand your neighbors, or are contemplating moving to a different part of the country, you don’t have to worry too much about the trouble of parting ways with property. Selling a house in Denver can take weeks or months (depending on the market), but renting gives you the advantage of just transplanting as soon as your contract expires.
By far one of the best advantages to renting is that your landlord is responsible for maintaining and repairing the property. You don’t have to mow the lawn, fix leaks, schedule boiler tune ups, or take care of any of the other tasks necessary to keep your home running smoothly.
If you aren’t ready to take on these tasks yourself, or your budget isn’t prepared to hire professionals to do the job for you, you might be happier renting for another year or two.
All that being said, we do believe that buying a house is better than renting for most people over the course of their life. Here are a few of the most important advantages that owning a home has over renting.
When you’re renting, every monthly rent check is basically money being flushed down the drain. The only thing you get out of it is a roof over your head for another month. When you own, however, every mortgage payment gets you a little closer to owning the house outright.
You are paying for more than just shelter, you’re paying for a permanent asset. This equity you build every month can be used down the line to make a down payment on another home, take out a home equity loan, or fund your retirement using a reverse mortgage.
If you opt for a fixed-rate mortgage, your monthly payment is going to stay the same for the next 15 to 30 years (depending on the loan term). Compare that to renting—where typically, your landlord can raise the rent every single year—and the long term benefits of owning become pretty obvious. According to Rent Jungle, for example, the average monthly rent for a 2 bedroom apartment in Denver rose from $1,100 in 2011 to $1,777 in 2018.
Perhaps the most thrilling reason to own your own home is because you can do anything you want with it. Sure, your landlord might let you paint the inner walls, but once you’ve got a house you have your choice when it comes to flooring, lighting, appliances, landscaping, and more.
Maybe you’ve always dreamed of having a finished basement for the kids to play in. Or maybe you grew up in a house with a wrap around porch and always wanted one of your own. As a homeowner, you can shape your house exactly to fit your vision.
A wise man once said, “Every situation in life has its advantages and disadvantages”. If you’re still wondering when is buying a house better than renting?, it’s time to weigh the advantages and disadvantages.
If you value your mobility and freedom from worrying about home maintenance, renting is probably best for you.
But if you are ready to live in the house of your dreams, build valuable equity, and get out from under the burden of annual rent hikes, then it’s time to buy. If you think that homeownership might be for you, give us a call today and let us help you find a beautiful home in Denver.