Homebuying 101: Why Buying NOW Makes More Sense Than Renting

OR

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.

For a payment of $966.43/month (or less!):  How about a 1 bedroom, 1 bath condo in Westminster?  Or a 2 bedroom, 1 bath, newly updated condo in Aurora?  

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!