Rent versus Own
Before you buy a home in Colorado, it's a good idea to consider all of the advantages to home ownership versus renting. Renting definitely has its purpose for certain situations, but for many people buying is definitely a wiser investment.
Owning a home in Colorado is always a better option than renting over time, regardless if home values are increasing or decreasing. We often confuse the situation by talking about appreciation, equity, tax deductions, being able to paint your house. However, consider the follow simple explanation on homeownership versus renting.
If you own your home and have a 30 year mortgage with a payment of $1,200/month. After 30 years you will no longer have a mortgage payment, and you will have a place to live. Even if the real estate market in Colorado was horrible and your home was worthless, you would no longer have to pay to live in your home.
If you renting a house in Colorado and your rent is $1,200/month after 30 years you will only have 30 years of rent receipts. You will still have to pay $1,200 next month if you want a roof over your head.
If you are trying to determine what you can afford if puchasing a home in Colorado you can read more about determing a purchase price based on your current rent.
Next Step: Short Term Plan
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