With skyrocketing home prices and competitive house hunting, it’s easy to feel the fright of buying your first home. Scary multiple offer situations and the terror of losing money menace first time home-buyers, leaving them fearful of the Denver home buying process. But remember, haunted houses are nothing but fog, mirrors, and chain-less chain saws! The Denver real estate market may seem scary, but purchasing a home in Denver might just be the very best thing you’ve ever done for your bank account. Just picture the tons upon tons of candy you could buy ten years down the road with all that home equity! Your future self will be thanking your former ghost for swallowing that fear in order to enjoy the thrill of home ownership.
Watch housing expert and President of Your Castle Real Estate, Denver’s most successful local real estate agency, explain the financial benefits of buying a home.
To learn more about buying your first home in Denver, download our free Infographic Trends Booklet!
But, don’t just take our word for it… examine the numbers to see why buying your first home could be the best financial decision you’ve ever made. No tricks here – just treats for your bank account!
As previously mentioned, buying your first home is one of the best ways to build wealth in real estate and it simply comes down to the numbers. Let’s take a typical example for a Metro Denver area starter home
- You buy a house for $250,000
- You make a down payment of 5% (equalling $12,500)
- Your mortgage is locked in at a very standard 4.2% interest rate, creating a monthly mortgage payment of $1,168
- We’ll estimate that your home equity will increase of 5% each year (this is a conservative estimate, given that the 45 year average of yearly home equity increase is 6%)
- Based on this conservative estimate of equity increase, your home is worth $450,000 after only 10 years!
- Your equity has increased to almost $250,000 when you started with only $12,500!
- You’ve made $237,500 just by purchasing a home and paying less monthly than you’d ever be able to find in rent