Renting versus Owning: It’s a Major Decision

September 09, 2016 / Posted in Denver, Downtown, Real Estate

Treehouse-Rent vs. OwnAn Important Decision

One of the most critical housing decisions facing anyone in the urban Denver real estate marketplace today involves deciding whether or not to become a home owner or a renter? Every individual will resolve this question based upon unique personal needs and goals. However, some useful considerations impact most people attempting to answer this important question. A full-service brokerage often provides one of the best sources of comprehensive information about local real estate conditions.

Some Rental Advantages

Relocation Freedom
A tenant typically enjoys a greater ability to relocate quickly to another property. Although bound to the full term of a lease, a renter may often terminate the agreement simply by providing sufficient notice in writing to a landlord. If another leased unit becomes available in a more attractive location in Denver, tenants usually possess the ability to act quickly to benefit from bargain rates or special offers.

No Property Taxes or Assessments
Additionally, tenants relish comparative freedom from property taxes and special assessments. If the City decides to construct a new paved alley along the edge of the property, for example, the owner, not tenants, must often contribute money to pay the bill for the improvement. Although special assessments occur infrequently, these types of expenses prove challenging sometimes during urban renewal.

Lower Costs
Generally, (but not always), a renter pays less to reside in a property than a home buyer. Some landlords will pay the utilities. Additionally, tenants usually do not pay for shared amenities on the property, such as apartment complex patios, swimming pools or clubhouses. Indeed, some tenants even obtain completely furnished premises. Some households find the reduces costs associated with tenancy very appealing.

The Benefits of Ownership

Traditionally, owning real property has offered a number of distinct benefits. Just consider a few of the most important pros associated with becoming homeowners:

Mortgage Tax Deductions
Some attractive mortgage tax deductions accompany home ownership. These advantages may offset many of the costs associated with purchasing property, especially over
the course of time. Property owners frequently choose to itemize their tax returns for this reason,.

Equity and Appreciating Values
Owners take greater risks and reap more significant rewards through property purchase. For instance, if the value of the premises increases between the time of initial acquisition and re-sale, the owner typically receives the benefits of the appreciation. By paying money to establish an equity interest in a house, condo or apartment, an owner essentially becomes an investor. The rapid appreciation rate of real property in our community during the past two years has assisted owners far more than renters.=

Decision-Making Authority
Homeowners typically enjoy greater decision-making authority over property than renters, too. Although Homeowner Associations (HOAs) and Condo Associations in many developments establish rules for everyone to follow, property owners typically enjoy voting rights in these groups. A homeowner who wants to paint the interior walls an unusual color or keep a large pet on the premises usually enjoys greater latitude than a tenant.

Our Dynamic City
Regardless of your answer to the renting versus owning question, Treehouse Denver Brokerage and Development strives to provide a reliable source of unbiased, accurate real estate market information. We work with people from across the United States, helping them learn more information about the Mile High City.