DON'T MISS A NEW LISTING AGAIN!

Register Now
Already registered? Login

FREE AUTOMATED EMAIL UPDATES
Sign in to take advantage of all this site has to offer. Save your favorite listings and searches – also receive email updates when listings you like come on the market for free!
*Contact Information is NOT Shared*

Testimonials

DJ was extremely helpful to me throughout the whole process. I am very satisfied with his handling of my home purchase and even though I live in a different time zone, he made himself available to answer or handle any questions I had. Charlene P.
Super professional, knowledgeable and stand up guy! DJ answered all of our questions throughout the process and we would highly recommend him to anyone selling their home! Tracy S.
DJ was absolutely amazing to work with. His experience and knowledge of Colorado real Estate was second to none. He made buying a house easy and fun, we are so thankful we found him. Chris & Tana W.
DJ is an exceptional agent! He worked with me and always offered great advice to my benefit. As a first time buyer I was a bit scared but DJ eased that tension and did his magic and got me my house! I will most definitely recommend DJ to everyone I know!!! Thank you Redfin and DJ for making this experience great! Carlos Z.
I was a first time home buyer and my experience buying with DJ was flawless. The process from start to finish was easy and stress-free. DJ has great knowledge of the market in the Denver-Metro area, including Highlands Ranch. He will go above and beyond and will make it seem like you're the only client he has. I can't express how grateful I am to have had an amazing experience in the buying process and would highly suggest using DJ to buy or sell your house. Ciara H.
View All
Back to Table of Contents

Is Buying a Home Still a Smart Plan?

With the burst of the housing bubble, credit crisis, and millions of foreclosures across the country, you may wonder if buying a home is such a good idea after all. However, it’s important to consider all of the facts. The important message to take away from these events is not that buying a home is a bad idea, but that you must be smart about buying your home.

The housing market, like every type of market, unavoidably has its ups and downs. That doesn’t mean buying a home is a bad investment. As a long-term investment, homeownership is still one of the best investments for individual households. Historically, real estate has consistently increased in value, despite shorter periods of depreciation due to local markets and/or national economic conditions. The data shows that homes generally appreciate about 5% per year.

Savings & Investment

Five percent may not seem like a great return on investment, but you have to think about it in the context of the situation. For example, let’s say you put 10% down on a $200,000 house. That’s a $20,000 down payment, or initial investment. At a 5% annual appreciation rate, your $200,000 home would gain $10,000 in value during the first year. Earning $10,000 on an investment of $20,000 is a whopping 50% return.

For further perspective, let’s say instead of spending that $20,000 on a down payment, you invested it in the stock market. With a 5% return, you would gain only $1,000 in profit.

Tax Benefits

So now you’re saying that a home may have a higher return, but that’s before you consider all of the costs of home ownership, such as taxes, etc. Well, think of it this way: your property taxes as well as the interest on your mortgage are both tax deductible. You can deduct those costs from your income, thus reducing your overall taxable income. In other words, the government is subsidizing your home.

Other Benefits

It’s easy to get carried away with all of the economic reasons for home ownership, but it’s important to remember that not every reason is financial. Have you ever wanted to paint the walls of your apartment? Well when you’re renting, you can’t. Has anything in your apartment ever needed updating, but the landlord refused to do it? When you own a home, you can make the space yours in almost any way you want. And you benefit when you do home improvements, both financially and psychologically. Homes generally have more space, for storage, living, etc. than other living arrangements. Not to mention that you have space outdoors for barbecuing, pets, and kids. Owning your home carries with it a sense of pride, accomplishment, and even an elevated social status.

So when you’re considering buying a home, consider the broad range of benefits that owning a home can have. And always make sure you have an experienced real estate agent and loan officer to help make sure you’re getting a home that is right for you, both financially and psychologically.

Back to Table of Contents

house realtor mls

Copyright © 2018, All Rights Reserved


720-936-8793
7200 S. Alton Way, Suite B200 Centennial, CO 80112

Real Estate Websites by iHOUSEweb iconiHOUSEweb | Admin Menu