To rent or buy in Colorado Springs is a big question you may find yourself asking when figuring out where you are going to live. Sometimes, purchasing a home is not the right choice. There are obvious situations that will limit purchasing options.
You Might Rent If:
- You can’t qualify – This might seem obvious but be sure to check with a lender before you make that determination. There are more work arounds (co-signers, down payment assistance, owner financing, etc…to help those that are less “credit fortunate”) than you might think. Before you assume you can’t qualify (and you know what they say about people that assume) I would recommend speaking to a lender to know for sure.
- Short term stay – If you are going to be here less than two years, you might want to consider renting unless you would want to keep it as a rental for a while.
- Job uncertainty – If you are actively looking for employment opportunities in out of area, you should probably rent.
Why Buy? What’s in it for you?
- You are paying something off. If you pay rent for 30 years, you will still be paying rent in 30 years. If you keep paying your mortgage, you eventually won’t have a housing bill.
- Lock in your “rent” – When you buy, you are locking in your payment for as long as you own your home (unless you refi). When you rent, you are subject to your landlord raising your rent as demand changes.
- Your mortgage interest is tax deductible. Your rent is not. There are even programs for further tax deductions if you qualify. Ask me about them.
- Many times, in Colorado Springs, rent is MORE than a mortgage! Why? Because supply is low and demand is high. (EX: If you are paying 1400/month in rent, at 4.5% interest rate you could be living in a 245,000 house that you owned!)
- There are even programs that give you FREE MONEY for your down payment! Ask me about it.
- Historically since World War II, housing prices have increased at an average of 5% per year (including the bubble and recession). You are making money on your home and making your housing inflation proof. As housing goes up, so does your equity. which means you will have more money for your next home.
So what should you do? Rent or Buy in Colorado Springs?
In summary, do I believe in home ownership? OF COURSE I do! I wouldn’t be in this industry if I didn’t. Owning a home is a cornerstone of financial security. Unless there is something specific in your situation making it not make sense (or possible) to own, stop throwing money away on rent!