Is it better to rent or buy a single family home in Colorado Springs, CO?

Asked by Jeff D, Colorado Springs, CO Tue Feb 15, 2011

Summer 2011 move

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22
Matt Pickett, Agent, Colorado Springs, CO
Tue Apr 19, 2011
I do believe the market will continue to rebound and prices will slowly continue to raise.
1 vote
Ron Rovtar, Agent, Boulder, CO
Fri Sep 7, 2012
Hi Jeff D.

It has been almost seven months since you posted this question. So I am wondering what decision you made. If you can catch us up on what advice proved most useful, it think we all would appreciate it.

In some ways the Colorado market for home sales played out differently than many of us expected early on. The buyers came back, but the sellers did not. The lack of inventory in many areas of the state made for some disappointed buyers and resulted in upward price pressure. But, rentals also seemed to be in somewhat short supply, which that did not help people like you either.

So tell us the rest of your story.

Kind regards,
Ron Rovtar
Prudential Real Estate of the Rockies
303.981.1617
info@rovtar.com
http://www.rovtar.com
0 votes
Peter Olson, Agent, Colorado Springs, CO
Fri Sep 7, 2012
Colorado springs is a tough rental market. If you can afford it, you are actually better off purchasing vs. renting. Rental vacancy rates hover around 5% which means little supply and lots of demand. This means higher rents. Often you will find that with current interest rates, a mortgage payment will be LESS than rent. With all that said, you need to have some cash to pay for down payment and closing costs...as well as a credit score above 580 (MINIMUM).
0 votes
Richard Coff…, Agent, Midlothian, VA
Mon Apr 11, 2011
On my website, I have a short article titled Home Rental or Purchase? Under "my pages", click on the subject item. Another article that may be of interest is Home Buyers Save Thousands. Happy trails.
0 votes
Lorraine Say…, Agent, Colorado Springs, CO
Mon Apr 11, 2011
Hi Jeff: You have been given some great advice already but to add to the previous comments I suggest you sit and chat with a Realtor and Lender before making any decisions. You can get a clear picture of what is involved in the process as well as how it would affect your personal goals. There is so much more to consider than just the financial pros and cons. Lifestyle, future goals, and employment outlook should all be taken into consideration. I'm here to chat over a good cup of coffee, can recommend very helpful lenders, and have a great FREE booklet for first time buyers that explains the process if you are interested in learning more about how this all works!
0 votes
Suz A, Agent, Longmont, CO
Mon Mar 7, 2011
Here is another calculator you might like:

The ULTIMATE Rent vs. Buy calculator | http://bit.ly/h6Ojom

Your question is it better to rent or buy. That's a favorite question. The calculator allows you to compare costs. But there is more to consider. Many people have careers that require more moving. I agree that if you plan to stay in a home only a few years, renting probably makes more sense.

There are advantages to owning. For one thing, the availability of low interest rates. Home affordability is the best it has been in 35 years. If you are leaning toward buying, it makes a lot of sense right now. And who knows if things will stay the same for years?

My best,
SuZ
PML of Longmont
Web Reference:  http://www.suzrealestate.com
0 votes
Matt Pickett, Agent, Colorado Springs, CO
Wed Feb 16, 2011
With current mortgage rates as low as they are and rents as high as they are it is better to buy
Web Reference:  http://EveryListingNow.com
0 votes
Barb Schiapp…, Agent, Colorado Springs, CO
Tue Feb 15, 2011
Hello Jeff,
Here's a link for you to check out regarding the rent versus buy question. Please also check out my website for some great deals and Good Luck.
http://www.coloradoconnection.com/news/story.aspx?id=573097
Barb Schiappacasse
RE/MAX ADVANTAGE
0 votes
Pamela Weath…, Agent, Colorado Springs, CO
Tue Feb 15, 2011
Hi Jeff,
If you are interested in learning more about the advantages of buying versus renting I would be happy to send you more in depth information. There are many aspects to consider. One would also want to sit and talk with a reputable lender to determine what would work best for their situation. I would be happy to sit and talk with you more over a cup of coffee. Call to set up a free buyer consultation .
Pamela Weatherford
Keller Williams Clients Choice
719.661.8672-C
0 votes
James Skadden, Agent, Colorado Springs, CO
Tue Feb 15, 2011
One of the first questions should be: How long do you plan to be in Colorado Springs? If the answer is less than 3 years, by all means RENT. One might even rent for 6 months to get a better feel for the city and the different "flavors" of the different areas of the town. Some areas are "fashion setters", some are "home town neighborhoods"...you'll feel best in the one that suits you best. Once you've made up your mind, find a professional than is more interested in you as a life-long friend than a quick sale. You'll be glad you did!
"Your Neighborhood Professional"
Jim Skadden
Keller Williams Hope
719-576-5432
719-661-2566
0 votes
Ron Rovtar, Agent, Boulder, CO
Tue Feb 15, 2011
There are, indeed, many issues to consider, including your own feelings about renting v. owning, how long you plan to stay in the home, what kind of loan you can get and issues about property values in the Springs. However, you might start with the Freddie Mac calculator at the top of this page: http://www.freddiemac.com/corporate/buyown/english/calcs_tools/

Best,
Ron Rovtar
Prudential Real Estate of the Rockies
Boulder, CO
303.473.1926
0 votes
Michael Julio…, Agent, Colorado Springs, CO
Tue Feb 15, 2011
Good Morning Jeff,

All the responses prior have good points, most certain how long do you see staying in your home. A 5 year is the response I give all prospective Buyers, the market looks to be flat for a couple of years, with some modest growth predicted in the future. That being said it cost a Seller appox. 7% to sell a home. With a annual growth of 2% in value for 3 years, and after the first 2 years of no growth. It would take appox. 5 years to break even. Second part how important is it to you to personalize your home, and can you find a long enough rental term so you are not moving every year or two. Last a fixed rate mortgage will allow you to know long term your monthly payments with exception to property tax increases. Renting you are at the Landlords mercy to raise the rent or move...the rental market in Colorado Springs as in many cities are hot due to many people have lost their homes but still need to live somewhere. Feel free to contact me if you would like to discuss your question further...
0 votes
Kevin Olson,…, Agent, Colorado Springs, CO
Tue Feb 15, 2011
Jeff,

In order to give an accurate answer, contact an agent or lender with your personal information. Buying is not always better than renting, and it depends entirely on your individual situation. It's easy to find apartment homes for less than what a house payment would be, but if you are looking at renting a house the situation changes. Once again, no one can tell you what is better without knowing your specific situation. Now is not always the time to buy, yet that's what you'll hear most of the time. Yes, rates are good and there is plenty of inventory, but I would contact a lender to see that you can qualify without stretching yourself more than renting would.

Best Wishes,
Kevin
0 votes
Victoria Jah…, Agent, Colorado Springs, CO
Tue Feb 15, 2011
Hey Jeff- I'm not sure if you're aware of the changes happening in our market or with the government winding down Fannie and Freddie, but if you are looking to buy a house now would be the best time. Interest rates just rose above 5% last week and will continue to rise. And with the uncertainty of the future of lending, you may actually save money by buying this year in a certain lending market. Feel free to follow me on Facebook to keep up to date with the changes in our market and to learn about creative financing options (while they're available).
http://www.facebook.com/pages/csrealtorcom/285643606752
Web Reference:  http://www.csrealtor.com
0 votes
Jason Daniels, Agent, Colorado Springs, CO
Tue Feb 15, 2011
Jeff,

Rents are on the rise and have been over the past 2 years. Home prices and mortgage rates have been decreasing over the last 3 to 4 years making home ownership much more affordable for qualified buyers. The numbers are usually in favor for those who paln to own for a minimum of 3 to 5 years. Real Estate is on sale and now is the time to take advantage of low prices and lower interest rates. However if you are planning on living in Colorado Springs for less than 3 to 5 years renting is probably a better option if you can find what your are looking for. Feel free to contact me if you have any specific questions.

Sincerely,

Jason Daniels

RE/MAX Advantage
719-268-8086
0 votes
Sue Bigus, Agent, Colorado Springs, CO
Tue Feb 15, 2011
hi Jeff
I have a spreadsheet that we can crunch numbers on for both rent and buy scenarios. There is more to you decision than numbers~ quality of life, job stability, etc. If you would like a free no-obligation 1 hour consultation give me a call.
Sue Bigus, ERA Herman Group Real Estate 719-229-5889
Web Reference:  http://www.SueBigus.com
0 votes
Marion Meyer, Agent, Colorado Springs, CO
Tue Feb 15, 2011
Hi Jeff,

There is no one answer to this question. It is all dependent upon the individual. If you are able to purchase, I believe that is the way to go, because you are then gaining equity in a property that you own rather than paying the mortgage off for your landlord. Should you move, you can rent the property. In Colorado Springs, I find that it is easy to find good renters if the property is located in the vicinity of a military base. That's not difficult, because we have so many bases! I personally own several homes that I have had no problem in renting out for more than my mortgage payment on them. I assist renters in finding properties all the time. It is often difficult to find a property to rent, with a management company that is responsive. Whatever you decide, please get yourself a Realtor to represent you! I'd love to be that person!

Regards,
Marion Meyer, ABR, QSC, CDPE
Broker Associate
RE/MAX Properties, Inc.
marion@peakdream.com
719-238-1660
0 votes
Dallas Texas, Agent, Dallas, TN
Tue Feb 15, 2011
Owning a home you receive annual tax benefits confer with CPA .

Rent you always make the landlord richer

Much depends on your short / long term goals

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
972-699-9111
http://www.lynn911.com
0 votes
Darrell Wass, Agent, Colorado Springs, CO
Tue Feb 15, 2011
Hi Jeff,
My answer could be more detailed if I knew what price range you were looking at, but the answer really depends on how long you plan to be here. If it is 4 years or less, it would probably be better to rent, but if you plan on being here for a while, it is a great time to buy. Interest rates are still very low, and rents have been increasing due to demand. The forecast is for our market to remain fairly flat the next 2 - 3 years, but interest rates have no where to go but up, and have already started moving. Let me know how I can help further.
Sincerely,
Darrell
0 votes
Brian Burke, Agent, Highlands Ranch, CO
Tue Feb 15, 2011
It depends on you, I think a a lower price it would be good so you can rent the home out if you need to move, It is a great time to Buy. I think it also depends how long you think you will live in the home.
Brian
0 votes
Lriley, Agent, Colorado Springs, CO
Tue Feb 15, 2011
It depends on your situation. If you are going to be moving within the next two years, renting may be a good option. However, if you are staying put, buying is definately the way to go. Interest rates are still extremely low and there are many affordable houses on the market. In addtion, our home prices are at a low point, so your dollar buys more house right now. Hope that helps!

Lisa Riley
Re/Max Properties, Inc.
http://www.lisarileyhomes.com
0 votes
Tim Moore, Agent, Kitty Hawk, NC
Tue Feb 15, 2011
You have not given us much information to base a guess on, but I would think that if home prices are down, as much as they are in my area, it would be a logical time to be a buyer. This assumes you have good job(s) and plan to be in the house for 5 years or more. If so, buy. Renting gets you no where and no deductions and no equity.
0 votes
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