Looking to save money? In this summers 2012 update of renting versus buying, Trulia.com found that nationally it is 45% cheaper to buy a home rather than rent. Here in the Denver area, it was found to be a whopping 56% cheaper!!
Trulia did their study between June 1st and August 31st of this year, and used the data on their website of homes both for sale and for rent. Part of their calculation was assuming that the home was sold after 7 years (which is average) and factors in closing costs, insurance, taxes and other costs. For the renting side, they factored in items like security deposits and renters insurance. Here in the Denver area, they determined that the monthly cost of home ownership is $798 and the monthly cost of renting is $1,823. That is a difference of $1,025 or 56%.
Important to remember with this is that for people thinking about buying a home, they need to itemize their tax deductions (mortgage interest) plan to stay in the house for 7 years or more, and obtain a mortgage at these currently low rates. Failing to do these things will greatly increase the cost of home ownership compared to renting.
While this sounds like a slam dunk reason to stop renting and jump in the home ownership pool, remember one thing. If you’re someone who moves a lot, like every year or every few years, this isn’t a good idea for you. Renting does give you one benefit which is greater mobility which owning a home doesn’t. You really have to ask yourself, “Can I stay here for at least 7 years?”, otherwise any savings you might have gained by buyinga home goes right out the window if you sell before that. If you can stay that long, What are you waiting for???
Author:Jason Peck Phone: 720-446-6301 Dated: September 26th 2012 Views: 937 About Jason: ...
Recognized as a top selling team in Denver Metro area. Nationally recognized for homes sold by the Wall Street Journal, Real Trends and Top 5 agent by RIS Media. Our goal is simple and that is to exceed our client's expectations by providing professional service, expert advice and exceptional results.
8212 W Quarto Drive Saturday and Sunday from 1pm-3pmGreat family
"We worked with the team of Jason Peck, Matthew Koller and associates in the sale of our home in Denver and the purchase of the new property in Thornton. Their advise to us on improvements and presentation aided us in an increased value of our home making it possible to purchase a much better home than we expected. The entire team are professional and easy to work with, understanding our needs for the best possible results. We were fortunate to find the best Realtors and we recommend them to anyone selling or buying a home."