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RENTING vs. BUYING Your Own Denver Home
Despite what Wall Street wants you to believe, owning a home isn't so stupid after all…
During the last 35 years, there has only been 1 other time when housing prices fell. Should you keep renting or use your money to buy stocks instead?
After selling nearly $100 million in real estate and mortage transactions, and owned over a dozen homes myself (including rental homes,) here are the Top Five Reasons why you get more for your money buying Denver Colorado Real Estate and Homes For Sale - compared to Renting or playing the Stock Market:
1. Leverage. Call your favorite Wall Street Stockbroker and ask them “what” stock, bond or mutual fund can you purchase today with 0-5% down payment and leverage your profit potential…and do you know what Charles Schwab, Ameritrade or Merrill Lynch will tell you? Most stockbrokers will call you back laughing telling you, “NOTHING like that exists you moron!” Nothing they sell – but a home or condo / townhouse listed at $200,000 ban be bought for as little as $1,000 to $5,000 cash to close. You’ll own the entire home and get to keep 100% of all the profit you can make! That’s just simply amazing…
2. Tax benefits. Your best buddies over at the IRS are basically bribing you to buy a home, condo or townhome. They are offering you free cash and free capital gains taxation on unlimited appreciation & profitability up to $250,000 if you bought a home and you’re single - and up to a half million dollars ($500,000) if you’re married.
With as little as 0-3% down payment investment, NO OTHER Wall Street stocks or bonds offers you this much upside potential for unlimited profitability. You just merely must live in the home for 2 years minimum and mow the yard!
3. Lifestyle. Do you like your landlord’s choice of barf ugly paint colors on the walls and wallpaper choices? How do you feel about living in a home that’s in horrible need of major remodeling and updating? Are the kitchen cabinets, countertops and appliances “gross” to you? Do you despise and hate the bathrooms, toilets, showers/bath stalls and especially the ugly linoleum print or smelly carpet? What about the lawn and landscaping – would you keep it the same way – if you owned the home? Searching for Denver homes for sale is more fun!
When you finally get sick and tired of living in someone’s home – you get to pick the home style, a new or older home, pick out your own decorating, paint and make the kitchen look beautiful so you’re “proud” to have family and friends over for Easter Dinner, birthday’s, Thanksgiving and Christmas Day festivities! No more humiliation and embarrassment living in a rental house…
4. Value. Real Estate never becomes worthless, unlike stocks, bonds and mutual funds that can lose ALL your money when the company goes out-of-business or bankrupt. Even in the worst of times, now and back in the late 1980’s with Jimmy Carter as President, there were slight fluctuations in the value of homes in any given year. Some areas will always have more price valuation fluctuations than others (factories closing, hurricane damage, etc) but most will have nominal to no change. Nationally, housing has only had 1 year out of the last 35 with overall losses in home values. You can pack and move to ANY real estate market in the USA and find a housing market that’s strong – right now it’s in Texas (Austin, Houston, Dallas and San Antonio.) Most larger US cities including: Phoenix, Denver, Seattle, San Diego, San Francisco, Boston, Chicago, Atlanta, Orlando, Las Vegas and Minneapolis have had housing values DOUBLE every 10 to 20 years – or less!
Think of it like this…if you paid $1,500 for a mortgage payment per month and multiplied it by 10 years, you’d pay $180,000. The IRS would give you back $48,708 in tax-deductible mortgage interest and your $200,000 would be worth $400,000. Take $400,000 - $180,000 - $48,708 = $171,292. You earned a $171,292 profit, where as you’d LOSE $180,000 if you paid $1,500 for rent for the next 10 years. Which idea is the stupidest to you…?
 5. Math Never Lies! So let's do a rational reality check here, and put the current mortgage and real estate situation in perspective. You lost more money on depreciation on your gas guzzling SUV. You foolishly paid 12% to 27.9% on your credit card balances. Amazingly, it’ll take you 9 ¼ years to pay off your $10,000 Capital One VISA at $150 a month at only a 12% interest rate – and you’ll LOSE $6,650 in interest expense by paying $16,650 on the $10,000 actual purchases. Are you crazy? You have a closet full of old clothes and shoes worth over $2,000 to $5,000 collecting dust (which you probably paid for on your credit card at 17.9%.) If you “do” have a 401(k) at work, you rarely if ever change the percentages of allocations to different funding choices – despite the excellent free advice you get on CNBC and other investment news – costing you “thousands” of dollars in upside and downside losses every year. Right?
You spend more per month on fast food breakfasts, lunches and dinners - plus eating out dinners, snacks at work, Big Gulps and chips at 7-11, daily coffee at Starbucks or other coffee houses, and chocolate, candy, chips and energy drinks. The average American spends over $438 per person on non-essential food & drinks a month – and that excludes all fine dining at more expensive restaurants and alcoholic drinks (at home and out at dinner and bar tabs.)
Are You Serious - NO WAY!!!
You’re only kidding yourself if you think you’re actually reasonable on your wasteful spending! You waste much more money on junk expenses – which could be used smarter for any difference between what you pay in rent and owning a $200,000 home. FYI - if you’d invest just $2.11 a day from your junk food/waste like you spend on coffee, snacks, fast food and alcohol – you’d make $95,651 in 30 years from today in a tax-deferred investment earning only 8%.  Take the $438 and divide it by 30 days per month equals $14.60 a day. That’s nearly 7 times the $2.11 investment above – so multiply the $95,651 by 7 times that equals $669,557. Eliminate junk food, snacks and garbage and you’ll make 2/3’s of a million dollars in 30 years – with or without buying a $200,000 house! Add back into that your home that’s DOUBLED in 30 years, and now worth $400,000 – and you’re Net Worth is $1.06 million. If your house didn’t double in 30 years – and if it was only worth your original $200,000 investment, you’d still have $869,550.
Well - you tell me...is buying Denver real estate so bad?
If you rent for the next 30 yeas at $1,000 a month, and with no rent increases (good luck there,) you’ll waste throw away $360,000 in pure LOSS to your landlord’s. And, you won’t have $1.06 million saved…or $869,550 if your home didn’t go up one dime in 30 years!
So, is buying real estate now, in today’s market conditions so “stupid” after all?
We'll Just Wait... (For What...?)
 With historically low interest rates, you’ll make a $146 profit per month between getting a 5.75% 30-year fixed rate now as opposed to ‘risking’ a 6.75% rate (like we had 6 months ago) a year or two from now. Fence sitting is killing you. The $146 x 12 months = $1,752, and multiplied by 5 years in a home is an $8,760 profit for investing in yourself now.
And keep this in mind: When how many times in the last year did you brag to your friends how much you loved your apartment or rental house – or duplex?
Home ownership is really the ultimate American Dream!
What If You Could Double $500 of Your Cash Deposit – Turning $500 Into a $1,000 Earnest Money Deposit on Your Dream Home? Tell me about what price range of homes you're interested in and what part of town you want to buy in - and I'll send you a free gift of $500 cash to use as earnest money when you use me as your Buyers Agent. Buying and selling real estate is much more profitable when you hire me and when you send me the email form here... 
Thanks again,
Jeff Boyce
(303) 588-4665
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