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Owning a Home Versus Renting a home 
                               
Interest rates are still historically low and the Denver Metro and Boulder County real estate market is offering many excellent buying opportunities. There has NEVER been time to invest into your first own home...

IS THIS A GOOD TIME TO BUY? YES!

In fact, it is the best time in years to consider buying your first home. But...

IS IT MORE EXPENSIVE TO BUY A HOME THAT TO RENT? NO! 

Let's take a look at this...

There are three things to consider: up-front costs, monthly costs, and long term costs.

The UP-FRONT COSTS of purchasing can seem overwelming. Down payments and closing costs normally range from 3.5% FHA loan) to 25% of a home's purchase price. VA eligible buyers can often puchase with no money down.

Closing costs can often be negotiated as a concession from the seller.

The MONTHLY COSTS of purchasing can be higher than those of renting, but those costs can easily be leveled by the tax advantages of paying interest on a home loan. In the example below, your tax refund will be $260 per month (28% tax bracket). By having your employer adjust your income tax withholdings, you can free up the cash to enjoy the TAX ADVANTAGES of owning a home immediately.

The LONG TERM COSTS of purchasing a home are far less than those of renting. Over just 36 months, the homeowner in the example below builds equity from paying down the principal loan balance and from appreciation of the property. Even in a market with modest appreciation of home values, that could amount to tens of thousands in total home equity. While you don't see that equity in your monthly cash flow, if you add it back after 36 months your actual housing expenses are just A FRACTION OF YOUR RENTAL COSTS over the same period of time.


EXAMPLE:
(Assumes $185,000 FHA purchase, 6.25% Note Rate, 6.743% APR). Current rate (07/26/10) for an FHA 30 year fixed loan is about 4.875%.  

WHEN YOU RENT
Monthly payment: $1,100
Appreciation: 0
Equity from paying on loan: 0
What you have in 36 months: 36 cancelled checks
Average total cost per month: $1,100

WHEN YOU OWN
Monthly payment: $ 1,345 ($1,088 after tax rebate)
Appreciation (assumes 4% Annually): $23,076
Equity from loan payments: $ 6,723
What you have in 36 months: $29,799 in home equity
Average total cost per month:$ 371

You get the point....

WHEN YOU ARE READY to purchase your first home, we welcome the opportunity to represent you. We can provide you with information about the buying process, financing your home purchase, assistance with negotiating seller paid closing costs, current market conditions and email updates on suitable homes on the market in your desired area(s).

My service includes assisting you with finding the home of your choice, helping you arrange financing and seller concessions, negotiating the purchase, and handling the details to ensure a smooth closing.

When you are considering a home purchase there are always many questions to ask. Don't hesitate to call or EMAIL me anytime, I'll be happy to discuss how I can help make your dream of homeownership come true, without making you feel pressured or obligated in any way. 

MY BUYER SERVICES COME FREE OF CHARGE TO MY BUYERS! (the seller pays my fees)

Submit my DreamHomeFinder form below to receive daily automated email updates of available homes for sale in the area(s) of your choice. I'll be happy to help in any way we can.

Warmest regards,
Rene Vellinga

Contact me          303-818-1689

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For detailed information on buying your first home, please complete the form below describing the type of home you are looking for. I will get back to you as quickly as possible with your results!
 
1
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2
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3
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