Sure renting is convenient. Renting makes you feel like you can leave at anytime. You aren’t responsible for major improvements or if the toilet starts to leak. And owning a home is expensive, right?
If you are or have been renting in the Denver metro area for more than two and a half years I recommend you kick that rental relationship to the curb and pursue the path of home ownership. Data shows that the number of years you have to own and live in a home in Denver before you begin to have more money and assets than you would have if you had rented is only two and a half years.
Home ownership is still one of the best investments you can make. The Federal Reserve reports that a homeowner’s net worth is over thirty times greater than that of a renter. An average homeowner has a net worth of $174,5000 while the average net worth of a renter is only $5,100.
Despite new building in Denver and a rental vacancy of 5.1%, Denver’s rental costs continue to climb, up 3% from last year. The Denver Business Journal reports the following data:
|County||Average Monthly Rental Cost||Vacancy Rate|
The average rental cost in the Denver metro area is $1074. Imagine what kind of home you could have with a mortgage payment of $1074. Buying a home using a 30-year fixed rate mortgage at 4.5% makes buying in the US 38% cheaper than renting, and 43% cheaper in Denver. Homes under $300k in Denver are on the market for an average of 40 days, with many going under contract within hours/days of being listed. It may not be the same as giving your landlord 30 days notice, but what you get back is far more valuable than that security deposit.
So do yourself a favor and get out of that rental. The process may seem daunting but that’s why I’m here to help. firstname.lastname@example.org