When thinking about where you want to live and what you want to live in it is important to decide whether it is more cost effective to buy or rent a home. These are some things that make coming to that conclusion easier. Purchase costs are the costs you pay at the close of the purchase including the down payment and typical closing costs. Yearly costs are recurring monthly or yearly expenses. Mortgage payments, property taxes, homeowner’s insurance, condo fees (or other community living fees), maintenance and renovation costs.

Selling costs is what you pay when you go to the closing for the house you are selling, including the remaining principal balance that you pay to your mortgage bank as well as the broker’s commission and other fees. The money that you receive from the person who is buying your home is what is called proceeds from sale. This amount reflects the value of the house that year, it is shown as a negative number because it is money you receive. If your buying total is negative, you made enough of a profit to cover yearly operating expenses and the cost of your home.

Renting is ideal for someone who plans to live in an area for fewer than three to five years. If you were to buy a house in that time, you might not get the return on your investment. Renting is ideal for the nomad who has yet to settle down. You should rent if you don’t want to be tied down to a mortgage or if you know that you never stay in one place for very long. If you purchase a home and sell it within a couple years, you’ll lose about 6 to 7 percent of the money you put in to the home through the cost of selling it. That said, no one should rent forever. Apartment rents are expected to increase by 12 percent by 2015.

House prices are making the jump as well, but when you own the house you are putting your money into that investment not into a landlord’s pocket. If you plan on being in your home for only a little while then renting is the way to go, as not to lose money trying to sell it when you decide to uproot again. Rent if you can only commit yourself to staying in the same spot for a year or two. If your career keeps you in the same place for many years, now is a good time to buy Denver real estate for sale.

About PorchLight Real Estate: PorchLight Real Estate Group has the most experienced and knowledgeable Denver real estate agents in Colorado. For more information about homes for sale in Denver CO or specific neighborhood homes please visit www.porchlightgroup.com.

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