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Marianne Bandy's Denver Homes Blog

Items of Interest to Buyers & Sellers of Denver Real Estate

By Marianne Bandy | Broker in Parker, CO

Rent vs. Buy a Denver Home - Study Says Buy in Denver

Lately, everyone has been shouting from the rooftops about what a great time it is to buy a home in Denver and other major U.S. cities. And now Trulia has provided some serious statistics that confirm all the yelling with their Trulia Winter 2012 Rent vs. Buy Index.

 

This year’s Index shows that it’s more affordable to buy than to rent in 98 of the 100 most populous metro areas in the nation, including highly priced cities like New York, Los Angeles, and Boston—but Denver residents have it especially good.

 

The data is based on the asking prices of both rentals and for-sale homes listed on the Trulia site between December 1, 2011, and February 20, 2012, and also factors in other costs such as taxes, insurance, and maintenance.

 

According to Trulia, their report “calculates the price-to-rent ratios for 100 major U.S. metros, after adjusting for attributes of the properties and their locations, to reflect the relationship between sales and rental prices for units with similar attributes in similar neighborhoods.”

 

A price-to-rent ratio of 15 or less means that buying a home is more cost-effective than renting, especially for those who’ll live in the home at least five years. If you’ll stay less than five years, 10 or less might mean a better bargain depending on moving and closing costs.

 

Denver’s number for spring 2012 is a fabulous 9.6, down from 10.5 in 2011. This means that it’s more cost-effective to own a home in Denver rather than rent, whether it’s for just a few years or for a very long time. And we’re in the top half of all 100 cities for this data, placing at number 41.

 

Affordable homes are just one of the many advantages that life in Denver can offer. So whether you’re already here or relocating to the area, skip the rental and buy a home in one of the most vibrant and growing areas of the country.

 

Let the professionals at the Bandy Team help you buy or sell a Denver home. Contact us for a no-obligation consultation. If you’re thinking about buying a home in Denver, we can show you some terrific properties in Denver, including homes in Cherry Creek, town homes in Lowry, and real estate in Stapleton. You may also be interested in horse property in Elizabeth or Parker horse property, and a variety of Parker golf course homes in Canterberry.

 

Marianne Bandy

 

Relocate to Denver

Comments

By Stephen B Holben,  Sat Mar 24 2012, 09:30
It's always best to buy; Always. Even in these hysterical times when the "wisdom from afar" "Experts"(Case-Shiller, Core Logic, Realty Trac, Trulia, Zillow, etc) are telling people what the value of their homes are even though none of these "experts" has ever laid eyes on any of the homes or even been in the city where they are located. How nut are we to give any credibility to them??? Anyway., buying locks in your investment, and places the home on your financial statement as an asset. Being leveraged most of the time allows that investment to achieve a return of around 17% just in the tax savings that accrue as a result of the deductibility of the taxes and mortgage interest. Add in appreciation and the ROI can be twice that; or more. And yes, as soon as people start functioning again, appreciation will return. Why do yo think there are so many investors buying real estate right now. Come on everybody, we've been living with our eyes closed and our heads in the sand for 5 years now. It's time to believe in ourselves and the future and start building our future. Houses aren't going to get any cheaper to build, and you don't see that much new building going on; particularly like the homes that were being built before this debacle. The new ones are much smaller and cheaper. http://holbenhomes.com
By Spirit Messingham,  Sat Mar 24 2012, 09:36
Interesting, I believe it depends on the person too. Just moved to a new town? Rent 6 months to get the lay of the land and see where you want to live, schools, commute to work, and etc.

Thanks.

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