Sometimes it makes sense to purchase a home rather than rent. When you own a home, you get a sizable tax break and you have a good chance of your property gaining value and offering you a return on your investment over time.
However, right now in Colorado, it may be a good time to consider rentals. Housing prices in Colorado have skyrocketed in the last six months. This is great news for homeowners who were trying to wait out the downturn of the early 2000s. Property values are now as high as they have been in a decade.
Unfortunately this may not be welcome news for people looking to enter the housing market in Colorado for the first time. When home values raise this quickly, it takes time to know if the demand for housing will continue at this rate, stabilizing or even raising housing prices, or if prices will settle back down by winter, when home prices tend to decrease a little naturally.
Rental prices follow the housing market, so they are high now as well, but it might be prudent to spend a year in a rental as you watch the housing market to see if these higher prices are here to stay, or if there will be bargains to be found in the next six to twelve months.
Living in a rental gives you the time you need to analyze the housing market and purchase at the perfect time
Only time will tell whether the high prices now are a small bubble of inflated prices that will burst, or a new trend that will continue to rise. Colorado will always be a great place to own property, but timing is everything when you enter a housing market with this much demand. Living in a rental gives you the time you need to analyze the housing market and purchase at the perfect time
Read more about the Boulder Rental Market
Read more about the Boulder Real Estate Market