Many people assume buying a home is better than renting a home, but that is not true for everyone. In most cases I think it is is better to buy rather than rent, but for some people buying may not be the right choice. Some people may not want to live in the same area for an extended period of time and in some cases it may be much cheaper to rent than to buy a house. I am a real estate agent in Greeley, Colorado and for the most part it is much better to buy here, because of the high rental prices in our area.
Why buying a home is better than renting a home in Greeley Colorado
In Greeley, we have an extremely tight rental property market and an extremely tight sales market as well. It is hard to find a rental or a home to buy. If you have the ability to buy a home, it may actually save you a lot of money over renting a home in Greeley. When you buy a house much of your money goes towards paying off your loan, instead of straight to the landlord. You also have the ability to buy below market value and gain instant equity as well as many tax advantages. Here is an article that describes the advantages of buying over renting.
How much does it cost to rent a home in Greeley?
Rental rates have increased significantly in Greeley for apartments and houses. I just checked Craigslist and to rent a four bedroom house in Greeley you are going to have to pay $1,400 or more a month plus utilities. This is for a Basic house that may have a one car garage and be 30 to 40 years old. The rental rates in Greeley have increased greatly over the last few years as this house may have only rented for $1,100 a few years ago. It is very tough to find any houses for rent in Greeley for less than $1,100 a month now. Those would be 2 bedroom, 1 bath homes that are not very big.
What does it costs to buy a house in Greeley Colorado?
The same house I just mentioned as a rental property could be purchased for about $180,000. That is assuming you buy a nice house that is not an amazing deal, but priced at the current market rates. If you get a FHA mortgage on that home and put 3.5% down, your payment including insurance and taxes should be around $1,100 a month. As you can see the rent is actually much higher than your payments would be on a mortgage when you buy a home.
Why you can save money by buying a house over renting a house?
In the above mentioned scenario you can save $300 a month by buying a home over renting a home. Most people naturally assume it is cheaper to rent a home, but that is not the case in Greeley. There are multiple reasons why rents are so high; limited rentals, great local economy and the oil and gas industry.
House prices are also increasing in the area, but interest rates are still very low. Because rates are so low it is possible to have very affordable mortgage payments. Property taxes in Greeley are also very low and that creates a low mortgage payment for buyers as well.
What other costs should you consider when buying a home?
Your mortgage payment will most likely be lower then the rent on a home in Greeley, but there are other costs to consider when you are buying a house. You will have taxes and insurance to pay, but we already calculated those into the estimated payment. When you buy a house you will have maintenance, repairs to make occasionally and utilities to pay. With most rental properties you have to pay utilities as the tenant, but you do not have to pay for repairs unless you cause the damage. While maintenance and repairs can cost a lot of money on some houses, often those repairs add value and you are not losing that money.
How hard is it to buy a house in Greeley?
It is usually harder to buy a house in Greeley than to rent a house. In order to qualify for a loan, you must have decent credit, a down payment and steady employment. This is one reason not every one buys a home. Not everyone who wants to buy, can qualify for a loan. With FHA loans and down payment assistance programs it is possible to buy a home with a 3.5% down payment or lower! Finding homes to buy in Greeley is also tough, because of the low inventory in the area, but it is also very hard to find rentals.
How can you get started buying a house in Greeley?
If you want to buy a home, give us a call at (970) 573-6441! We will be happy to help you find a home and find a lender. Even if you think you may have problems qualifying for a loan, talk to a lender to see what you need to do to buy a house. Our team lists many homes including HUD and REO listings and we can help you find a great deal.