Don’t wait to buy your home! All you need is a credit score of 580 and $1,000. For a free list of first time home buyer loans, please call (303) 222-0027 or e-mail firstname.lastname@example.org.
Over the course of their lifetimes, most Americans will make more money on the real estate they own than any of their other investments, such as 401ks, stocks, bonds, and savings accounts.
They make this money because, over time, their properties appreciate in value and because they pay down their home loans.
Let’s look at different scenarios of how much money you might make on your first home, depending on how much Denver’s housing prices change over the next three years. The scenarios below are based on borrowing $150,000 on a $150,000 property, at 4% interest. The examples below show how much you can make by having the property rise in value, as well as by fully paying off the loan.
0% increase per year for three year
$8,500 (from paying down the loan)
3% increase per year for three years
$22,400 ($13,900 in appreciation and $8,500 from paying down the loan)
5% increase per year for three years
$32,150 ($23,650 in appreciation and $8,500 from paying down the loan)
10% increase per year for three years
$58,150 ($49,650 in appreciation and $8,500 from paying down the loan)
Even if home prices stay static for the next three years, and there’s no appreciation, you can see in the first scenario that you still are ahead by $8,500, from paying down your loan.
If you had rented a property for three years, you would have nothing to show for the 36 monthly rental payments.
Also, there are tax advantages to owning your own home that aren’t figured into the scenarios above. You’re able to deduct the interest on your home loan, as well as the property taxes that you pay.
Please note, however, that the scenarios above are assuming that the price of property in the Denver metro area stays the same or rises. There’s also a chance that it can do down in value.
If you would like to start looking for your first home, but haven’t saved up a down payment, don’t worry! If you’ve been waiting and you’re a millennial, there’s no need to wait any longer. There are first time home buyers programs available that only require you to come up with $1,000.
Please Note: Our e-mail notifications about available properties are a great tool for first time buyers. During a free consultation, we can discuss types of properties you’re interested in along with which sections of Denver you’d like to live in, and those alerts can be customized.