The Rueth Team – It is truly cheaper to rent than buy…

    I can’t argue the fact.. it is cheaper to rent than buy in Denver today

    I have conversations with many first time home buyers who are frustrated that it is cheaper to rent than buy.. putting their purchase on hold. Are they wrong? Nope! They’re not… they’re right. I am seeing numbers ranging from $1602 average rent for a 850 sq ft apartment to $2100 median rent for a home in Denver. The median purchase price in the Denver metro as of March is $415,000. Many comparisons will show a purchase with 20% down. But let’s be realistic… most first time homebuyers do not have 20% to put down. So a $415,000 home with 5% down would be an estimated $2450 including taxes, insurance, and mortgage insurance. If I stop there.. it IS cheaper to rent than buy.

    But let’s not stop there. Let’s break this down just a bit…

    1. Rent continues to go up… the average rent increased 6% year over year, 1.4% just in the last month. So next year that $2,100 median rent will be $2,226; then $2,359; then $2,501. Meanwhile the purchased home will stay at $2,450. In fact.. it will go DOWN once the mortgage insurance falls off.
    2. In 5 years, the homeowner will have gained $35,545 in equity through principle reduction… just by paying their mortgage. While the renter might or might not get their security deposit back.
    3. Assuming Denver’s 30 year historic average of 6% annual appreciation; the homeowner will have gained an additional $115,000 in appreciated value in 5 years. While the renter is paying $700 more a month in rent.
    4. The homeowner will have the choice to convert that home into a rental, allowing the renter to pay increasing rent, building the homeowners net worth every single month!

    When you or people you care about say “it’s cheaper to rent”; acknowledge that they are correct… but then.. dig a little deeper. Share with them the vision of building long term wealth. The kind of wealth no other investment available provides.

    Want to schedule a time to explore your personal financial goals and how real estate can get you there? Or have questions about what buying would look like for you? Let’s do this! Call me today at 303-808-2300, or…

    See what you could qualify for here! No Obligations!

    Subscribe to our YouTube page by clicking here.

    SEARCH FOR HOMES IN YOUR AREA!


    Nicole Rueth
    Producing Branch Manager
    O 303.214.6393 M 303.808.2300 F 866.397.5890
    W https://TheRuethTeam.com/ E nrueth@fairwaymc.com
    NMLS# 239840 A 750 W Hampden Ave, Suite 500 • Englewood, CO 80110
    Social:

     


    Reviews on Zillow

    3802651

    “Brian was an awesome agent, he really took the time with us when we were looking. We were in a very competitive market and Brian helped us win an … more
    5.0/5.0
    by leex3845

    3890993

    “Athena is very detailed and looks out for your best interest. She made sure that I was protected and getting the best service. I would highly suggest … more
    5.0/5.0
    by Shannon Cordova

    4156622

    “Andrew provided invaluable help by being open, accessible and responsive. He took representing our interests seriously and was extremely thoughtful … more
    5.0/5.0
    by Abby Rondot

    apply_today