Renting vs. Owning: Advice from Your Denver Real Estate Expert
April 8, 2016
For many, owning is the “end goal” when it comes to your long-term living arrangement. Owning a home definitely has its perks, and you can feel good knowing that you own it. While convenient, many are ready to move to home ownership, but that is not always the best case. Before you rush into searching for Denver homes for sale, renting may still be the best option for you at this moment in time.
Renting Pros Renting is the perfect option when there are several unknowns in your life. For instance, if you may move for work, or are a student who may move to a new area, renting may be better for you. Renting is also great for those who want to buy in a certain area, but want to make sure they like the area first. Next, renting is a great option for those who are building their credit. While you may be able to qualify for a mortgage, by postponing the buying process to build your credit situation, that could set you up for a better financial situation in the future. Last, if you live alone, are not handy or do not have a savings for home issues, rentals take care of those maintenance issues for you. Plus, they keep up indoor community spaces and outdoor areas too.
Renting Cons One of the biggest downfalls of renting is the lack of equity you're building. When trying to determine if you need to make the switch to home ownership, discuss this with your local Denver real estate expert. Next, you do not get the same tax benefits during tax season when you rent as you do when you own. Last, if you enjoy customizing your own space, usually there are restrictions there that have to go through your landlord. Some small changes are fine, but when you get into painting or upgrades, you will need approval before moving forward.
Owning Pros The top pro to becoming a homeowner is knowing that your money is going towards something. In addition to building equity, it can become an investment. In years to come, when it is a “seller’s market” you can make money off the price of your home. Also if interested, you can choose to rent out your property. When it comes to customization, your home is your domain. It is your space. You can decorate and paint as you please, upgrade appliances and fix issues as you see fit that will also add value to your home.
Owning Cons When you make the switch to home ownership, you will need savings in place for when things go wrong. You are fully responsible for everything that happens, such as appliances going out, water leaks, bad plumbing, etc. Without savings for emergencies, you can really put yourself in a tricky situation. You will also need to build savings for your property taxes, home insurance and even a down payment to get started. Next, if you have any uncertainties, or may need to move quickly, ownership may not be for you. You need a lot more time to move and a good go-to amount of time when looking for homes for sale in Denver is five to seven years. If you don’t think you will stay that long, consider continuing to rent until you are.
If you are unsure if you can make the switch to owning your home, The Sherman Agency can help! We are a premier active family-owned company in the Denver real estate market, and have been since 1964. Give us a call at 303-572-8778 or fill out a contact form to get started!