Why RENT When You Can BUY?

Vacancy rates are very low right now for Denver metro, and rent rates are on the rise. There are legitimate reasons why some people rent (past short sale/foreclosure, bad credit, transitional housing, etc). However, a good portion of those renters would qualify to buy their own home, and may very well pay less per month on their mortgage payment than they do in rent!

There are many benefits to home ownership:

• When you own your own home, you get to make your own decisions about the home. You can tile your bathroom, paint the walls, add a deck ... all without approval from your landlord! And when you make these home improvements, you will know that it is money well spent as it should improve your home's resale value.
• With most loan types, each mortgage payment you make increases the equity you have in your home. Once you lock into your mortgage rate, you will always know how much money you need to cover your mortgage payment, and you don't have to worry about unexpected payment increases as you do each time your lease expires.
• As a homeowner, you obtain tax perks. The interest portion of your mortgage payments are tax deductible, as are property taxes.

Here is a practical example. A rent payment of $1500 a month costs you $90,000 in five years. You could BUY a $200,000 house, and your monthly mortgage payment (principal, interest, taxes & insurance) would only be  $1277/month (assuming an interest rate of 3.75%, a 5% down payment, and & a 30-year loan). After five years, you will have reduced your loan principal by $18,853. You will have also gained on appreciation of the entire value of your home, not just on your down payment. In addition, you are able to deduct your mortgage interest and real estate taxes, which, in a 25% tax bracket, would reduce your effective monthly payment to about $805, a savings of $695/month when you factor in the tax deductions! 

What are you waiting for? Visit realtortrina.com/preapproval to find out how much you qualify for and let's start looking for your new home!

Trina Oyloe, Realtor, MBA, ABR, e-Pro, TRC
Cherry Creek Properties, LLC
(303) 378-9333

www.RealtorTrina.com
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Email me at RealtorTrina@gmail.com!

Five Star Award Winner - 5280 Magazine 2012