Apartment rental rates in Denver continue to go up but mortgage rates continue to stay low. In addition, the housing market continues to strengthen. This is definitely a great time to switch to becoming a homeowner rather than remain a mere tenant.
Despite the advantages of owning a property in this opportune time, many people still remain reluctant about buying, especially as it involves years of paying a mortgage every month — even though in the current market it may just be a hair more (or even less!) than they have to pay when they choose to rent.
Why not start investing and making those payment go towards setting yourself up for the future. Consider these advantages of owning a home compared to renting an apartment.
Invest in your future, not your landlords!
When you rent, you pay the mortgage for a property that will never be yours. On the other hand, buying a home means you invest in a property that can be passed on to your family to give them a more secured life or sold when you need to move. It is yours. All your sacrifices will pay off after several years, so you can look forward to a more peaceful retirement.
Your plans and preferences can be realized
Everyone has a dream house, and you can own yours—or something close to it—when you buy a home instead of renting one. You can follow your plans to suit your preferences. You can renovate, remodel, and expand to your heart’s content, and even have the whole family pitch in with their ideas that can make them feel more at home.
Mortgage rates rise slower compared to rent
You may find it hard to believe, but the average mortgage rate in the US rises slower than the average price of rent, especially in Denver. As a matter of fact, mortgage rates drop down more often than rents do. If you are lucky enough, you might even get a property that you can mortgage for the price of rent in the area.
Moreover, the period of bank computation is typically longer than a lease contract. You can maintain a convenient interest rate much longer (an average of five years) than a convenient rental fee (an average of one year) because rates go up after the initial contracts. Most banks even offer fixed interest rates, so you do not have to worry about your mortgage going up any time in the future.
Owned homes build equity
Investing in a property is like saving in a bank. You can sell your asset in case of an emergency or when you have already decided to move.
Owning a home entitles you to tax benefits
The interest of mortgage is tax deductible while the rent is not. The actual mortgage that you pay is not really the money you lose because you get to save on tax by the end of the year anyway. The same cannot be said for paying rent since housing expenses are your actual expenses.
You can generate income from your own home
If for whatever reason you decide to move or own a second house, you can have your first house rented, from which you can get the money to purchase your next house.
So, the next time you write that rent check ask yourself, “Am I ready to own what I’m paying for, or do I want to keep giving my money to someone else?”