Five reasons to buy a home in Denver now

It’s becoming a very popular question within the Denver Real Estate Market — to rent or buy?  Whether you rent or buy a home in Denver, keep in mind that you are paying for the space you occupy. You must live somewhere, and there’s a cost to pay. In most cases, owning a home is much less expensive then renting.  Consider the following factors:

1. Denver Metro rent prices are to increase 10 percent a year for the next 10 years.

Denver Housing Authority reported rents in Denver will increase 10 percent a year for the next 10 years.  It is a simple fact of supply and demand.  X and Y generations want to live in an urban setting where they can walk to restaurants, bars, and grocery stores. There is a limited supply of homes with a high walk-score in Denver. In addition, the people who have experienced foreclosures and short sales are generating more rental demand.

 2. Denver is the No. 1 city in America for people under 40 to move to.

The youth of America are drawn to our amazing city.  Why not?  We have abundant outdoor activities from skiing to golfing, hiking, running, swimming, etc.  We are consistently ranked one of the healthiest states in America.  We have over 300 days of sunshine, great restaurants, professional sports and a vast array of cultural arts.

 3. Affordability is better than ever.

According to the National Association of Realtors, homes were more affordable in December than at any other point since the group started the index in 1970. The NAR’s affordability index is a measure of the relationship between home prices, mortgage interest rates and family income.

4. Mortgage rates are historically low.

It’s not just the price of the home that will affect affordability. Mortgage terms will also affect your monthly payments. These days, rates are historically low for conforming loans, those that can be purchased by the mortgage agencies Fannie Mae and Freddie Mac.

5. You can get a federal tax credit.

Each year you are able to write off any interest paid on your personal residence from the year before.  This is one of the only ways to reduce your tax burden to the government if you are a W-2 wage earner.

But low rates don’t mean lenders are handing out mortgages easily. You’ll need good credit, at least 3.5% down payment and a willingness to document your income in order to qualify for those great rates.  It can be an arduous process but well worth it when you can own the American Dream.