Rental prices are consistently increasing all over the metro area, but if you’re currently paying rent in Colorado, can you really afford to take the leap into homeownership? The outlook may be better than you think.
According to a new study by Zillow, a Denver renter paying $2,000 a month in rent can afford to buy a $408,906 home in Denver. The good news is that's above the $377,500 median value of a Denver home, but the bad news is there are not a lot of offerings at the $408,000 level.
Zillow estimates that less than a third of homes for sale in Denver are priced less than $408,906. The company said it factored in "all monthly homeownership costs, such as property taxes, maintenance and insurance" and also figured a 20 percent down payment for the house, which is a major challenge for a lot of renters looking to buy a home.
In this market, in particular, buying versus renting is a financial trade-off – people are either saving more each month on a mortgage payment or spending more on rent. Many of the more affordable homes in Denver are older, smaller and in transitional neighborhoods. While renters may be paying a higher monthly premium, they also can take advantage of the amenities, larger space and desirable location that some apartment complexes offer.
So what’s the right move? Well, consider if you really want to be a homeowner. Then start with your finances – get pre-approved for a mortgage and you’ll know exactly how much home you can afford. If you decide you’re ready to take the plunge – or at least start looking around – contact Metrowest. We’d love to help you start the process!
Author:Andy Potarf Phone: 720-244-1070 Dated: May 3rd 2017 Views: 265 About Andy: Andy Potarf is a native of Denver and a graduate of Colorado State University.
He works with fir...
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Since 2003, Metrowest Real Estate Services has been Denver’s premiere resource for residential, foreclosure, REO and investment real estate. When helping you buy or sell, our mission is to provide excellent customer service to our corporate and individual clients by ensuring that our agents exceed all standards for market knowledge, professionalism, and client support. Whether you are a high volume investor or a first time homebuyer, our team at Metrowest can help you realize your real estate goals! Metrowest is your Denver Colorado Real Estate Team. We specialize in helping you get the most of your sale, purchase or investment.
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"Andy helped my husband and I buy our first home and it was a great experience! He is very knowledgeable about the housing market and was always available to answer our questions and concerns. Buying a new home can be overwhelming, but Andy was very personable and made us feel comfortable throughout the entire process. I would highly recommend him to any of my family and friends. Thanks Andy!"