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Should You Buy Your First House in Denver in Today’s Market?

Posted on: December 3rd, 2016 by , No Comments

buy your first house

Buy your first house or hold tight -take a look at the numbers and see if it is safe for you to pay down a mortgage or to keep renting.

Buy your first house in Denver Colorado -great idea with rental deposits significantly lower than most down payments ($250-500.00 on major complexes), the rent vs. buy equation can seem like a tough one to solve. Saving up for a down payment or worries about the cost to maintain the house can be intimidating. The full picture can look much different.

Market conditions and rising rents in areas across the country caused most to lean strongly in favor of buying for a large segment of the population. But is it possible for them? Of course, your decision should be based on your personal financial situation and if you’re planning to stay in your first house for long term. There are a few key reasons why you may want to sign mortgage paperwork instead of a lease.

1. Consider Tax Breaks when you buy your first house

Another financial benefit extended to homeowners comes in the form of tax deductions. The early years of paying a mortgage consist in large part of paying down interest, but this expense is tax-deductible. Property tax is also deductible, as is depreciation of the property. Another big tax benefit occurs upon the sale of a home. If you profit on the sale of other types of investments, you are required to pay a capital gains tax. But if you lived in your home two of the last five years before selling, the amount you earn on the sale isn’t taxable.

2. Turn Debt Into Equity

Choosing home ownership doesn’t depend on market conditions in the ability to build equity over time. Equity that can be tapped into later. While home equity shouldn’t be considered a replacement for other forms of saving or income, it can act as a “rainy day fund” for those who have trouble putting money away. A monthly rent payment will disappear into the hands of a landlord. Paying off their debt.

3. Can You Depend On Stable Rent?

Colorado Springs had a 6.1% rental increase in 2016 and Aurora had a rental increase of 4.6% and made the list of “The 10 Cities With The Fastest Growing Rent” on ApartmentList.com. When you go through the article you can see how much rents are fluctuating nationwide. If you buy a house and once rates are locked and paperwork is signed, you can expect to pay the same amount over the course of your mortgage. The only changes could be due to property taxes, insurance rates, or if you opt for an adjustable-rate mortgage over a fixed-rate mortgage.

4. Are You Ready Emotionally?

Owning a home is a huge commitment so before jumping in, consider if you are ready to make lots of decisions, from picking an agent to picking paint colors. Are you confident enough to select a neighborhood where you’ll want to stay for a while? And are you up for devoting the time and attention to maintaining a home? There’s no property manager to call as weekends disappear under chores like pulling weeds, cleaning gutters, shoveling snow, sealing counters and decks, and on and on. Taking care of your biggest investment can be gratifying but only if you’re ready.

Adam Buys Houses Company buys houses all over Denver Colorado. If you have a house or condo you need to sell, give us a call directly today at 303-997-2045 or simply click here to sell a Denver house.

Disclaimer: This blog is for educational purposes only. Please seek legal and professional counsel before buying a house.

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