A big financial decision adults have to face is to decide whether to buy a house or to rent one. To help you come up with the best decisions, rental property management companies in Denver, Colorado suggest you take the following factors in consideration.
Your Financial Status
Examine your financial status. Do you have a stable job that pays well and will it be enough to cover for all of the expense that comes with owning a house? Live within your means.
Length of stay
Buy: If you intend to live there for a long time or settle there for good.
Rent: If you have no intention of living there for a long time and if your job requires you to move around.
Calculate the price-rent ratio
To determine if it is better to rent or to buy a home, obtain the price- rent ratio. The price-rent ratio will determine if the price for homes-for-sale are fair. Look for two similar apartments, one is for sale and the other one is for rent. To get the ratio, divide the price of the home by the annual rent. If the ratio is close or exceeds 20 it means that you can save money by renting a house. For example, apartment A costs $300, 000 and the annual rent for apartment B is at $17,000. The price-rent ratio is 17:64; so it is more cost efficient to rent.