Homebuying 101: Why Buying NOW Makes More Sense Than Renting
Why It's Time to Declare Independence From Your Landlord!
Are you currently renting? Have you thought about buying a home? According to rent surveys conducted by Rent.com and Apartment List, there is only one neighborhood in the Denver Metro area where you can rent an apartment for less than $1,000 a month.
Median rents (the point at which exactly half of the rents are higher, and half are lower) in many of the Denver neighborhood and #denburbs are much higher.
Some examples of prices for a 1 Bedroom Rental:
- Indian Creek: $969.14/month (Average)
- Bear Valley (Southwest Denver): $1081.67/month (Average)
- Cherry Creek: $2647.61/month (Average)
- Belcaro (south of Cherry Creek): $2367.70/month (Average)
- Thornton: $1530/month (Median)
- Parker: $1420/month (Median)
- Wheatridge: $1000/month (Median)
So, what could you purchase without changing your monthly expenses? That's a GREAT question!
For this exercise, let's assume a conventional loan, with 5% of purchase price as your down payment, a 30 year loan, at 4% interest. This calculation takes into account annual property taxes, home owner's insurance, and mortgage insurance. Properties used are in Adams County.
At a payment of $1420/month (or less!): You can get a 3 bedroom, 2 bath Ranch in Commerce City - with a large yard and no HOA!
What if you can afford a little more?
At a payment of $2200/month (or less!): You can afford anything from a 3 bedroom, 2 bath, newly remodeled Ranch in Aurora; to a 4 bedroom, 2 bath in Westminster - with a finished basement; to this 3 bedroom, 3 bath, 2 story home in Brighton. Those are just a sampling of the opportunities. At a sale price between $300,000 and $350,000, there are 169 available properties in Adams County alone.
If you can put more money down, you will have a lower payment - or can afford a higher price. What are you waiting for? Let's go house hunting in Denver!
Every situation is different – so call Jennifer Prestwich at 720-341-5235 to discuss whether now is a good time to make your move!