RENT VS BUY
Homeownership is exciting to consider! Before you move to the beautiful Colorado Springs area, take some time to consider whether renting or buying a home is best for you. You’ll need to take into account the anticipated length of your stay in Colorado Springs, our eligibility for a VA loan and your prequalification amount, as you decide whether to rent or buy a home.
Benefits of buying a home
- Mortgage interest is tax deductible.
- Property taxes are tax deductible.
- Mortgage payment amount stays the same vs rent amount that may increase.
- Monthly home mortgage payments increase your home equity.
- In the long run, a home is a good investment.
- Keeping the home in the event you return to Colorado Springs.
- You get to make decisions about the home, such as like what color to paint the walls.
- Greater privacy
Benefits of renting
- Call the landlord for appliance repairs, roof leaks, etc.
- No large ticket items to replace, such as the furnace or the water heater
- Depending on the home you rent, you may not have the landscape maintenance responsibility
- No long term financial commitment
- More flexibility to relocate
Resale is important to the military homeowner
If you expect to sell within two years, it’s important to consider the cost to sell of generally 6.5 to 7% plus any necessary repairs. Your regular mortgage payments will reduce the principal balance which will help build equity. Having enough equity or savings when it’s time to sell is important in order to cover selling costs.