Determining Whether to Rent or Buy in Today’s Market
As real estate prices continue to climb, people are looking for property to buy or rent in different cities in Colorado.5 Durango is a gorgeous country with wide-open vistas, painted green with thickly forested Mountains and Valleys. Recreation abounds in all the seasons in Durango. Mountains for skiing or nearby lakes & hot springs can be found in these rolling hills and peaceful valleys. Some find this a compelling reason to move outside of the city, to more rural areas in Durango. Yet others are moving into the city to frequent gastropubs, wineries, breweries, restaurants, galleries, boutiques and so much more.6
Buy or Rent?
The dilemma remains, do we buy or rent? The cost of renting a 2 bedroom home rose 20% in Durango in the past 4 years.1 Recently, in one complex in Durango, tenants had a rent increase of 50%.2 And the trend seems to continue.
Home prices have also risen steeply, and new construction is slowing down, partially due to the expense of building supplies going up.3 We aren’t sure when the end is in sight in Durango, Colorado, or any other State. Some are mulling whether to move out of their apartment and buy a home as they see others doing the same. Others wonder if they’ve been priced out of the market. Rents are high in Durango, so many here are considering whether or not their money would be better applied towards a mortgage payment that will stay the same.
Questions to Ask for Buying or Renting
There are many questions people should ask that are similar both in buying and renting.
- What can I afford to pay?
- Am I going to stay in Durango for a while?
- What area do I want to move to?
- How well do I know this area? (You may consider factors like schools, noise, crime, proximity to shopping, activities, parks, traffic, and more).
- Would the area I choose be different if my job changes?
Pros and Cons list of Renting or purchasing Property
Regardless of which you choose, consider making a list of Pros and Cons to contrast to make your decision of whether to rent or buy in Durango. Some Pros could be the fact that with renting there is no long-term commitment. There is also no responsibility for maintenance and repairs, that will be the job of the Landlord or Property Management Company to handle. And renting a property is likely cheaper than owning. You also won’t have a down payment, just a deposit.
Your Cons list could include having to move again if you rent. Include how much you think rent could go up, you might consider that if you rent. There are no tax benefits for renting as there would be for buying a home.4 You have a loss of choice in a lot of areas — pets, sometimes privacy, or design and decoration. So come up with your list of Pros and Cons and get to renting or buying a property in Durango, Colorado.
If you already have a rental property, then consider using The Property Manager to help you professionally manage your residental or commercial rentals. They’ve been established here in Durango, Colorado for almost 35 years.
Footnotes:
3 – https://www.denverpost.com/2021/05/09/colorado-lumber-costs-surge-new-homes-diy/
4 – https://www.mymove.com/moving/guides/the-pros-and-cons-of-renting-a-home/
5 – https://www.durangoherald.com/articles/durangos-real-estate-market-immune-to-covid-19/
6 – https://www.durango.com/top-things-to-do-in-historic-downtown-durango/
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