Denver's real estate market can feel scary. We all know that buying a home in Denver could involve multiple offer situations and that houses on the market are expensive. Feeling tentative about one of the most important investments of your life is only natural - and quite thoughtful actually.
But, did you ever consider that if you're renting, you're completely missing out on that amazing investment? Your housing cost descends each month into the bottomless pit of the property owner's pocket. If, on the other hand, you find a way to purchase a home, that monthly housing bill becomes an investment in your own financial portfolio. Sounds much better, doesn't it?
Experts agree that owning a home is one of the largest wealth-builders available to Americans. According toForbes, œa typical homeowner will be ahead of a typical renter by a multiple of 45 on a lifetime financial achievement scale. Imagine your wallet 45 times fuller! Many factors play into this impressive figure:
Mortgage rates can remain fixed.
- As long as you don't refinance or move, your mortgage payment will remain the same - forever! In contrast, rents increase yearly.
Adjustable rate mortgages will fluctuate based on timely mortgage interest rates (these tend to change by a fraction of a percentage)
Fixed mortgages will basically remain the same, though associated taxes may change
You can expect about a 10% rent increase every year if you choose not to buy
The historical average of home appreciation is 6% yearly.
- Considering that mortgage interest rates hover around 4%, this financial gain literally grows exponentially each year as your home value increases.
This means that your home equity will almost double over the span of 10 years
You have to pay for housing anyway, so you might as well be paying it into your own pocket.
That rent check could be a mortgage payment.
A mortgage payment can be viewed as paying into your own savings account just picture your home as a gigantic piggy bank
Discover what home you can turn your rent payment into with our Rent to Own Calculator!
Waiting to buy a home could cost you future wealth and lasting financial stability. Keep in mind that Denver's break even point - the amount of time you must live in a home in order for owning it to be most cost effective - is just under two years. But if you plan to stay for the long haul, rich rewards await (pun intended).
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