Buying vs. renting can be a tough decision but which one is right for you? Both rent and the cost of homes is higher than the national average for the Montrose, Colorado area. And the entire state of Colorado has a higher overall cost of living than the rest of the country. There are a number of factors to consider before you buy a home or rent in Montrose. Learn what you need to consider so you can make the right decision!
Where are You at in Life and What’s Your Plan?
Think about where you are at in your life. What do you see for your future? Before rushing into a decision, you need to have a plan. If you’re new to the Montrose area, you may want to consider renting at first to get a feel for the area. This will give you time and will save you from having to make a quick buying decision that you may later regret. If you’re not 100% sure that you’ll stick around for a while, definitely hold off on buying. Renting allows you to have a lot more flexibility and freedom. If you know you’ll be around for a long time or maybe you’ve been renting for some time, how do you know if it is the right decision to buy? With a solid income and a plan for the future, you can be more prepared to buy a home in Montrose.
Average Cost of Renting or Buying a Home in Montrose
The costs of buying or renting in Montrose vary wildly depending on where you are buying or renting, what condition the property is in, how big it is, along with a wide variety of other factors. On average, a small home or larger apartment will rent for about $1,200 per month. Rental properties in Montrose can be found for more or less but this is generally the average you will pay in rent per month. This usually does not include utilities.
The average cost for a small to average size home in the Montrose area is around $270,000. Again, housing costs can vary greatly, especially in certain neighborhoods and areas that are nicer, but this is generally the average. Your monthly mortgage payments will vary depending on the house you buy, the terms of your mortgage, your lender, and other factors. However, you cannot just compare the cost of the monthly mortgage payment to the cost of rent in Montrose. You also have to take into account taxes and home maintenance costs.
The average cost of rent for a nice, small home or large apartment is around $1,200
The average home prices for small to medium sized homes in the Montrose area are around $270,000
If you can’t find a place for $800 or less per month, buying might be a better option
Differences Between Renting and Buying
Many people make the mistake of comparing monthly or yearly costs of rent to the cost of the mortgage. Instead of comparing in this way, consider what kind of impact the decision you make will have on your overall finances. If we use the example of a $270,000 home for sale vs. a rental property that goes for $1,200, for most people, it may be better to buy. If a home is around $270,000, it’d be cheaper to rent in the long run if you can find rental properties for around $800 per month. The competition for rental homes is fierce in Montrose though! It can be hard for families or couples to find properties that suit their needs, are big enough, and that are affordable.
Everyone’s circumstances are different and whether you buy or rent depends on a large variety of factors. Some new homeowners forget to factor in things like taxes and home repairs. A general rule of thumb is to allow for the amount of 1% of your home’s value for the cost of home repairs and maintenance every year. So for a $270,000, you could expect to pay an additional $2,700 each year for maintenance costs.
One of the biggest benefits of buying is that you don’t have a landlord to answer to. You can remodel and change your home as much as you want. You’ll also be able to have pets without the extra costs or restrictions that landlords have. Buying a home also allows you to build equity. Buying a home is a great option for the Montrose, Colorado area if you’ll be here for a while and you have a plan for the future. Learn more about why you should buy real estate in Montrose!