When moving to Parker, Colorado, one of the biggest decisions you will face is whether to buy or rent a home. There are a number of pros and cons associated with each option. Only by carefully thinking through your situation can you determine which choice is best.
One important thing to consider is how long you plan on staying in the area. If you are only going to be in Parker on a short-term basis, renting is obviously the way to go. When you rent a home, the only thing tying you down is your lease. As soon as the lease is up, you can leave without any major repercussions. In most cases, you can even break your lease if you need to leave early.
If you buy a home, on the other hand, leaving is much more difficult. You have to put your home on the market and wait for the right buyer to appear. Depending on the real estate market, this can take a lot of time, meaning that you can’t just pack up and go.
Renting also make sense if you don’t have a lot of money saved for a down payment. If you take out a mortgage without paying at least 20% down, you will usually be required to pay for private mortgage insurance. This can significantly add to your monthly expenses.
When you rent, on the other hand, you just need to have enough cash on hand to cover your first and last months’ rent as well as any deposits. This is usually a lot less than you would need to have if you were making a down payment on a home.
There are disadvantages to renting, as well. When you rent a home rather than buying one, you don’t have a chance to build equity. Instead, your monthly rental payments are going into someone else’s pocket without doing anything to improve your financial situation. When you buy a home, on the other hand, you instantly begin building equity. This can put you in a much better financial position as time goes on.
One final thing to consider when deciding between renting or buying a home in Parker, Colorado, is whether or not you want to deal with upkeep and maintenance. When you live in an apartment, your landlord will usually handle any maintenance-related tasks. As a homeowner, however, you are responsible for maintaining your property on your own.