CHOOSING A HOME IN COLORADO SPRINGS -BUYING VS. RENTING
In our dual roles as both an experienced real estate firm and a respected property management company, we have the unique ability to respond to the individual needs of our clients. Whether they should rent or buy isn’t our decision to make, but rather our job to provide unbiased guidance and knowledge, so each client can make an educated decision that is right for their family.
Advantages of Staying in the Rental Market
There are many advantages that come with renting a home. Renters have the unique ability to “try a place on for size”, allowing flexibility at the end of the lease term to find something that may better suit their needs. Should the location not fit or perhaps the family expands, the ability to move on to another home at the end of their lease term is not one from which homeowners can benefit. No matter the change in circumstance in the life of a renter, there is an opportunity to start fresh in another home without any penalty, as long as the term of their lease has been satisfied.
In the life of a house, it is inevitable that something will break and need repair or replacement. As a homeowner, you are fully responsible for any expense related to the maintenance, repair and general upkeep of your property. However, as a renter, your singular responsibility is simply to inform either a landlord or property management company of the issue and allow someone else to handle the repair. The worst you may experience is the inconvenience of living with something while is in the process of being repaired or replaced, but an owner will experience that with the additional burden of shouldering the cost.
Finally, many people find themselves in circumstances that dictate a short amount of time available to procure and then move into a new home. Renting a home can be advantageous if you are on a short timeline. Depending on the availability of the home, once a renter signs the lease and pays all applicable deposits, they can take possession of the home and begin the moving process. Purchasing a home, conversely, can be a lengthy process with the average wait time lasting longer than a month or more.
Advantages of Considering Homes for Sale
The most obvious advantage of owning a home versus renting is financial in nature. Each month’s mortgage payment pays down the loan, while simultaneously the property’s value can slowly increase, resulting in a buildup of equity for an owner. Ideally, if you purchase a home for $200,000 and sell it seven years later for $250,000, an owner has not only made money on their investment, they have benefitted over the course of their ownership by deducting all mortgage interest from their yearly taxes. Conversely, renters put money in their landlord’s pockets, not their own. At the end of a lease term, a renter walks away with nothing financially.
Another financial advantage to being an owner is having cost stability each month. If an owner finances their home with a fixed interest rate, that mortgage payment will never change and becomes a fixed cost for their monthly budget. In today’s rental environment, however, a renter’s monthly cost can, and most often does, increase over time. Budgeting for those unknown increases can be difficult and can put a strain on a renter’s finances.
Most importantly, an owner can rest in the fact that the home is 100% theirs. They will never be bound to pet restrictions which is the number one issue our renters are experiencing during their home searches. Additionally, an owner can change paint colors, have freedom with landscaping choices, or choose to add to or upgrade their home at any time. Renters cannot alter a home that is not theirs and are often left living with aesthetic choices not matching their own. Owning a home allows freedom of choice, a right not given to renters.
So What is Your Best Course?
Given all the pros and cons of renting and buying, it truly comes down to a lifestyle choice. Renting can offer a lower maintenance way of life, which is appealing and often purposefully chosen by families. However, many families operate under the assumption that renting is all they can do, either because it is simply all they know or they believe that home ownership is out of their reach. The reality is that, in today’s market, monthly rental payments, for similar properties, are often higher than a monthly mortgage payment and a renter can most certainly have to pay more money out of pocket up front to cover security and pet deposits. With today’s low interest rates and budget friendly loan programs, including down payment grants, buyers will often fare better.
What’s Next In Exploring My Home Options?
Education is the key and knowledge truly is power when it comes to making the best choice for your family. If you are considering making Colorado Springs your home, be it with one of our quality rental homes or any of the homes for sale in Colorado Springs, simply contact us and we would be happy to assist you in exploring all of your options.