Denver Rental Rates at All Time High - Should I Rent or Buy?

Denver Rental Rates at All Time High - Should I Rent or Buy?

The Denver Real Estate Market has been booming! This goes for both home prices and rental prices. It has just been reported that the Denver Rental Rates rose another 10% in the 3rd quarter, making our rental market the 4th highest in the nation. 

It is estimated that the average rental rate for a 1 bedroom apartment is $1,360 per month, while the average 2 bedroom apartment will cost you somewhere in the range of $1,575 per month. And what's more, the average rent now consumes more than 46% of the renter's monthly income. WOW!!!

So, this leaves many renters wondering Should I Buy A Home? 

Should I start contributing my income to an investment of my own?

This question has a few different factors to consider.

1) Do I have enough money to buy a home?

Buying a home can be pricey. In this market you may have to pay over asking price to get the home that you want, which can obviously rack up the dollar amount needed. However, there are lots of great options for down payment assistance, savings plans, and more. You may be surprised to find that the amount of money you need is not as much as you may think.

Check out "7 Tips For Saving For A Down Payment" for more information.

2) Will I qualify to buy a home?

After the "mortgage melt-down" of 2008 a lot of lending institutions tightened their qualification guidelines which pushed a lot of people out of the mortgage market. Now-a-days the FHA lending program is offering loans with fico scores down to 580 and, of course, a skilled mortgage broker (who can be referred to you by your Realtor) can help get you on the right track to a home loan.

3) Can I afford a home?

If you were to purchase a home using a total loan amount of $250,000, at an interest rate of 4.25% - your monthly principal and interest payment would be $1,230. This would NOT include any property taxes, homeowners insurance, or HOA payments, however, in this price range, your total payment would not be likely to exceed the average rent amount for a 2 bedroom apartment ... and you would OWN your OWN home!!

If you are interested in taking a look at 

your home buying options, 

please feel free to contact me at anytime!

For a sneak peak, here is a link to the current:

Homes For Sale in Denver for $250,000 (or under).

Homes For Sale in Aurora for $250,000 (or under).