If you’ve lived in the Denver Metropolitan Area for long, you probably know we have a highly competitive housing market; finding the right house, at the right price, in the right area, with the right amenities, is tough. Still — paying for a mortgage is almost always a better bet than throwing money away on a rental, and as this recent Denver Post article shares, the costs of renting can be a heavy burden to bear.
Read on for 6 reasons you should do everything in your power to buy a home instead of renting — even in a Seller’s market like Metro Denver.
- You can do anything you want with the property. You want to paint hot pink stripes in the dining room? Do it up! When you own your home, improvements and changes are up to you, and the upgrades you make to lighting, curb appeal, interior amenities, etc. — are all investments that could pay dividends when it’s time to sell.
- Your mortgage rate remains the same. Ever experienced a rent hike? #ugh With a fixed-rate mortgage, you won’t be on the edge of your seat waiting for your rate to go up, providing a more stable budget long-term.
- It’s an incredible investment. After paying rent for 5-10 years, what will you have to show for it? Well…a lot of check stubs, probably. When you own your home, you gain equity over time by paying down your mortgage, and in addition the market value of your home will likely rise over time, increasing the value of your home equity. Instead of paying your landlord’s mortgage, you are investing in your own net worth.
- Tax benefits. Don’t you just love paying taxes!! Said no one. Ever. Taxes are inevitable, but the interest you pay on your home mortgage is likely tax-deductible (see your qualified accountant for advice on your situation), underlining the value of your investment and saving you money on your taxes every year. #winning
- Homeowners are building positive credit history. As you make timely payments on your mortgage, you are contributing positively to your credit history. Over time, you can reap the rewards of a positive credit status by acquiring lines of credit (like credit cards) and loans at more attractive rates.
- There is an end in sight. If your landlord decides to sell the property you live in, or jack up the rent, you are out of luck. If you rent for many years, you add nothing to your net worth over that time. When you own a home, you can achieve greater stability in your housing situation, and one day — whether through the sale of your home or by paying off your mortgage completely, your mortgage can come to a successful close. Rent? Never, ever ends.
When it comes to your housing expenses, the real gamble is throwing money away on monthly rent: paying someone else’s mortgage, when you could be investing in your personal long term prosperity by purchasing a home of your own. When you secure a mortgage and purchase a home, you are betting on yourself! And from where I stand, I like those odds.