Rent or Own Either Way, You’re Still Paying a Mortgage -

 

We have all met a person who has not purchased a home because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize that unless you are living with your parents rent-free, you are paying a mortgage, whether it is your mortgage or your landlord’s. 

As the Joint Center for Housing Studies at Harvard University explains:

“Households must consume housing whether they own or rent. Not even accounting for the more favorable tax treatment of owning, homeowners pay debt service to pay down their principal, while households that rent pay down the principal of a landlord plus a rate of return. That’s yet another reason owning often does—as Americans intuit—make more financial sense than renting.”

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Also, if you purchase with a 30-year fixed rate mortgage, your ‘housing expense’ is locked in over the thirty years for the most part. With Denver’s rental market, If you rent, the one guarantee you will have is that your rent will increase over that same thirty-year time period if it hasn’t already been increasing for the past four years. 

Whether you are looking for a primary residence for the first time or are considering a vacation home on the shore, owning might make more sense than renting since prices and interest rates are still at bargain prices. Take your time!