With a severe shortage of rentals available in Denver, and few rental buildings being built, Denver could expect to see rental rates rise 10% or more in the next few years. This means that if you are in a lease, and plan to stay there for awhile, then you should try to renew your lease before prices go up. Or, maybe it is time to think about buying instead!
In an article I found on CNN Money, Peggy Alford, president of Rent.com says "The demand for rental housing has already started to increase. Young people are starting to get rid of their roommates and move out of their parent's basements."
By 2012, she predicts the vacancy rate will hover at a mere 5%. And with fewer units on the market, prices will explode. Consider that vacancy rates in Denver are at an all time low of 2%. Once you factor in supply and demand, you can see what rental rates are going to do and can imagine how high they might go.
So instead of paying higher and higher rent each month, why not consider buying instead? Interest rates are still near an all time low and make owning more affordable than ever. I have helped lots of clients who are paying the same amount for their monthly mortgage as they were for rent. They are getting the tax benefits, don't have to worry about bad landlords and get to do what they want with their home. And for those that think you need a large down payment to buy, that is rumor too. Most buyers these days buy with only 3.5% down and there are even programs that allow 0% down. So before signing that lease, lets talk and see if buying is a better option foryou.
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