Should You Purchase or Rent a Home in Denver?

Posted on at 1:08 pm by Andrea Webber

It’s an age-old question: is it better to rent or buy a home in the Denver metro area? The average apartment rent in Denver is $1670 (according to Rent Café), which is a steep price, considering that you aren’t building any equity, or receiving a tax deduction. However, in certain situations, it might make more sense to rent versus buy. While I’m obviously in the business of buying and selling homes, I always want my clients to make the best decision. Here is the breakdown of the benefits of buying versus renting in the Denver area:

Here are a few reasons to consider purchasing a home in Denver:

  • Equity – Real estate can potentially be of one of your most important assets that can grow your net worth. Purchasing a home may help you build equity that you can use to purchase future properties. In recent years, Denver home prices have increased significantly.
  • Freedom – When you own your own home, you are free to do whatever you want with it. If you want to paint your walls red, go for it. If you rent a property, you will be very restricted on any changes you want to make.
  • Tax Benefits – Interest and property taxes (up to $10,000 in 2019) are tax deductible. There are no tax benefits associated with renting.
  • Fixed Costs – As long as you have a fixed rate mortgage, you will be able to budget for your monthly payment. There will be no surprise letters from the landlord alerting you of a large rent increase.
  • Roots – When you buy a home, you are more connected to your neighborhood and are able to put down roots.
  • Pride of Ownership – You will look at a property that you own with pride and take good care of it.

Here are a few reasons to consider renting a home in Denver:

  • Short Term – If you plan to live in the home for a short period of time, renting might be a better option. It may take several years to recoup the costs associated with a home purchase.
  • Flexibility – If you are planning a possible move to another city in the near future, it is preferable to rent so you have the flexibility to move quickly and inexpensively. Renting also gives you the freedom to downsize quickly.
  • Costs – Renting allows you to avoid maintenance costs and homeowner association fees.
  • Lower Monthly Payment – Renting a home in Denver lead to a less expensive monthly payment than purchasing a home, especially if you lack the down deposit.
  • No Risk – When you rent a home, you have no risk of home depreciation.

In a nutshell, if you have long-term plans to stay in your home then it makes sense to purchase a home. If you are planning a short-term move, then it makes sense to rent a home. There are many other factors to consider, including your overall financial picture.

If you have questions regarding the benefits of renting a home versus purchasing a home in Denver, please feel free to reach out to me at 303-475-7057.

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