Most consumers choose to rent because they assume that is where the real savings are.
However, when you crunch the numbers, especially in the long-term, renting vs. buying in CO come up with vastly different results.
If you have been renting and it is time to move, there are some reasons to consider purchasing a home. While it might seem like a costly investment, that investment typically pays for itself over time, while rent does nothing but eat away at your investment potential.
Purchasing a Home is an Investment
When comparing renting vs. buying, it is important to consider the investment aspect, according to US News.
Renting an apartment, condominium, or home is not an investment. Instead, it is a monthly expense with no returns.
A home, on the other hand, has a mortgage and a monthly premium, but that premium pays down the balance owed. Over time, the value of the home typically increases above the mortgage owed. Eventually, you might even pay off your home — giving you a significant investment in your portfolio.
Most people opt for renting because they tell themselves that they do not have to worry about paying for the repair costs.
While this is true, you have no control over the repairs. Landlords are not required to make quick repairs if it is a minor inconvenience, so you could wait days or weeks for them to fix that leaking faucet. Also, you have no control over whom they hire or the quality of the repair.
When you own, you control when maintenance is done, who performs the repairs, and the quality of those repairs. By being in control, you are adding value to your home, but also reducing the likelihood you will have costly repairs in the future.
When you own a home, you have freedom. You can remodel, paint the walls, add upgrades, and do what you want to the property because it is yours.
When you rent, you are limited. Some landlords do not let you hang items, many do not allow you to paint, and if the space becomes outdated, it is unlikely the landlord will upgrade or remodel.
Bottom line, home buying in CO offers you financial freedom, control, and opens the door to a great investment opportunity.