We don't think there's much of a debate when it comes to whether you should rent or own real estate, but we still get asked all the time if it's worth a buyer's time to own a home. Some of the biggest gripes is that you need to pay for upgrades, fixes, and multiple other things when you are the homeowner, versus simply having someone else pay for, say, a new washer and dryer if you are simply renting.
Why you should Buy a Home!
We want to make sure we educate as many people or families as possible on why buying is still the best investment you can make. Some points are below, and remember that we're mostly talking about the Fort Collins, Loveland, Windsor, and Northern Colorado region.
1. Home values are going nowhere but up. According to this post about Northern Colorado Real Estate Projections, home values are going to double within the next ten years, and we think that could even happen within the next five to seven years. Prices are peaking, which means that your home value is only going to help your total investment in the future. Some people think that buying a home is not an investment, but we couldn't disagree more. You are building equity, and if you are smart enough to buy or you already own a home in Fort Collins or Northern Colorado, you are building a nice little next egg for the future.
2. Even if you have to do some minor or major fixes in or around your home over the next few years, consider this. Every single mortgage payment you are making pays off some of the principal of your home loan. So, say you are starting out on a 30 year fixed rate, and you are currently paying $1200/month for your mortgage. Every single payment you make, you are making money on your investment, even if you are paying interest. And the value of your home is rising. You might be thinking 'This water heater is going to set me back a thousand bucks, and I don't have that right now'. But think about what you are gaining by owning a home. The positives outweigh the negatives, and it's not even close.
3. You have control. Even if you live in a neighborhood with an HOA, you still have the right to do with your home what you want to. Don't like the paint color? You can repaint. Don't like the way your roof looks? You can replace it. Don't like the deck in your backyard? You can rebuild or repair it. Nobody is telling you not to fix up your home because you own it.
4. You can always sell. And in the current market here in Fort Collins, Loveland, Windsor, and throughout Northern Colorado, most homes are flying off the shelves very quickly. If you need to upgrade because your family is growing, we can help you find a home that you can grow with. If you're looking for more land, we can help with that as well. The average price of a home in Northern Colorado is rising exponentially every year, so you have a leg up when it comes to selling.
5. Tax benefits. Renting gives you very little or no tax benefits. Owning gives you the interest deduction yearly on your taxes, which can help you when it comes to Uncle Sam trying to collect your hard earned money. Make sure you check with your accountant to be sure of what is deductible, but your interest, property taxes, and some of the costs of buying a home are going to save you some money come tax time.
6. Lastly, owning a home gives you the freedom and stability that you won't have if you are renting. These may be the two most important factors to us because, with the rising costs of rent, you are most likely paying less to own a home than you would to rent a 2-4 bedroom home in Fort Collins.
To learn more about buying or selling your home, visit www.coloradorepros.com or call me today at 970-342-3568.
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I'm Brad, owner of Colorado Real Estate Pros. This blog will talk more about my day-to-day as a Fort Collins Realtor, and my life as well. Enjoy!