Rent or Buy? It’s a question thousands of people consider each day. However, only one decision really helps people to build wealth and financial security…buying real estate! Below are reasons why more millennial’s are buying homes rather than renting in Denver.
People often stereotype millennials as the generation of renters. However, the latest stats have shown counter-trends. A recent report by the National Association of Realtors reveals millennials are turning to purchase homes instead of renting. Today, thirty-seven percent of millennials own a home in the United States.
Another report unveils Denver as one of the most popular U.S. cities, rating the Mile High City as the second-best place to live in the country. While factoring in the strong job market, quality of life, and value index in terms of annual housing cost, Denver ranked only behind Austin, Texas.
Now that autumn is here, there has never been a better time to purchase a home in Denver. The home prices in most neighborhoods are slowing down, and homebuyers have more leverage than the sellers. In addition, the interest rates have fallen below 4 percent. These are all key factors which help make it the best time to buy a residential dwelling.
When Renting is a Good Option?
If the nature of someone’s job takes them to another town every two years or more, renting makes more sense, since it’s easier to end a lease than selling a home. And if someone has a tight budget and limited savings, buying a home seems nearly impossible, right?
Now is the best time to devise a plan, and figure out ways to save money for a down payment. If
this seems challenging, there is another option…approach a mortgage broker such as Dave Kevelighan. Discussing a home purchase plan with a professional loan originator can help you create such a plan.
When Is Buying the Best option?
According to Rent Café, the average rent in Denver is $1,670/month for an 841 sq. ft. apartment, so renting a home in Denver can be quite expensive. On the other hand, buying a home can be the best investment for someone’s future and establish financial freedom.
Through making monthly mortgage payments, homeowners are able to build equity over time, and the dream of owning a home becomes a reality. Since property appreciates over time, real estate can be a very lucrative investment. There are also significant tax deductions when owning a home.
From reduced interest rates, to mortgage deductions on income taxes, there are many benefits in owning a home opposed to renting in Denver.
Considering the city’s cost of living, high-income growth, home sales growth, and a strong job market, buying a home in Denver’s real estate market is a wise financial decision. The steady and impressive gains in home value, and low unemployment with better wages, are some of the reasons that Denver is one of the best places to buy a home.