Is It Better to Rent or Buy a Home?

Renting VS. Buying

“Should I rent or buy a home?”

The decision to go from renting to buying  is definitely a big one. The market crash in 2007 showed us how easily things can turn bad and the technical jargon, confusing loan processes and mountains of paperwork can make it seem like a trap. But the reality is, when you line up the facts, it seems that for those of us in a certain lifestyle, the real trap is renting.

In this post, I will outline just a few of the ways that owning a home will help you now and in the future.

Monthly Payments

Today in the Denver/Metro area, the price of rent is right around the same price as a mortgage. That sounds crazy when you think about all of the financial benefits that come along with paying a mortgage.

Let’s start with rent.

When you pay your rent, that money is gone. Off into your landlord’s pocket, and more than likely to pay one of their mortgages and still have some leftover as profit. To some of you, you have never seen the difference between a mortgage and rent. Some people never even realize how many financial advantages there are in paying a mortgage over rent. 

First off, with a mortgage, you can actually deduct the interest you pay on your mortgage, your mortgage insurance, and even real estate taxes paid, from your taxes. So paying a mortgage = bigger tax return, and those interest payments really can really add up.

Secondly, equity. Equity is the amount of money you have paid on your loan, and can be an incredibly valuable asset in your future.

The most obvious use of equity is when you are selling your home. Buy a home for $200,000, pay off $50,000 then decide to sell, (assuming the house sells for the same amount), you will have $50,000, which you can use to upgrade into a bigger, better home.

But there are a few more options for equity, like using it to open a line of credit, giving you access to to use the previously mentioned $50,000 while still in the home. This can come in handy when you are renovating or something like that, but there is something else you can do with that money that will open even more doors! Check it out here… Become a landlord!


Though there have been some ups and downs throughout recent memory, property value has been on a constant uptick, especially around Denver. Can you imagine if you had bought 30 acres somewhere downtown in the 1920’s? Even in the 70’s, the price was exponentially lower.

Unfortunately, with renting you are on the wrong side of appreciation. Every time a lease expires, the renewal contract is more expensive.

You might be thinking, “But if something in the house fails, that’s on me, rather than on my landlord”, which definitely is true, but the cost of a water heater or washer or dryer will easily be covered and then some with the tax breaks and credits that come back around once a year.

Not to mention, the appliance that busted in the ‘renting’ scenario was probably unbelievably old in the first place, and chances are, they won’t be replacing it with anything any better!

Don’t miss my article about how buying a home can be your doorway to investing in real estate!

And The Little Things

Most of us have, at one point or another, had to find a parking spot in our complex after grocery shopping. Or had the neighbor above us who has the cops coming around every couple days to knock on doors looking for him. Parties next door, couple fighting across the hall, those people that drink on their deck until 4 am yelling, or the mass of parentless little kids causing a ruckus.

Owning your own home may seem like a lot more work, but the benefits definitely outweigh the risks! The value goes up, your ability to borrow goes up! But not only all of this, you are solidifying a foundation for yourself. Your landlord can’t sell the property and leave you in incapable hands, or raise the rent. You are in control, and gaining wealth!

Are you ready to buy a home? Click the button below and let’s get you there!

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