It’s often sunny in Steamboat Springs, Colorado. If you happen to be here when it’s snowing, or raining, just stick around a little and the sun will again shine. If you live in Steamboat Springs, you might say that, yes, it’s a sunny place. So when people ask me questions about whether to buy real estate in Steamboat, I might answer like this: If you plan on staying in Steamboat Springs long enough to consider it “a sunny place” then yes, buying now is a good idea.
I moved to Steamboat from Seattle 6 years ago. And it took me a few months to conclusively say that Steamboat Springs is a sunny place. So if you’re going to be spending some time in Steamboat, and especially if you don’t plan on leaving in the year or two, buying is the way to go.
“I think the arithmetic is such that if you plan to live in your home five or more years, then you should really consider buying a single-family home in most parts of the country at this point in time,” he says. “Prices have fallen so far, that single-family housing now is very, very attractive; very affordable […] and it’s now even attractive relative to renting.” See full article on buying real estate or renting a home here.
So renting is often an alternative. But I can also tell you that rentals were cheap and plentiful 2 years ago, but over the last 6 months, it’s getting harder to find a great rental. Here’s a great graph on the cost of renting vs. buying in particular cites. I know, Steamboat is not included in this graph so I’ll have to refer you to the sunshine test.
But here’s my question: If home prices continue to fall — and the days of steady, predictable appreciation are gone at least for the next few years — does that mean that owning a home isn’t such a good idea?
The answer, I think, is a resounding no. Here are 4 reasons:
1. Buying and selling real estate can be an equity ladder to wealth
2. Home price are down significantly and interests rates are amazingly low
3. Home ownership is grounding and healthy
4. Great tax deduction on interest payments
So if you’re thinking about buying real estate or possibly renting for a while, take the sunshine test to determine if renting make sense or if buying should be considered.
—For more information on buying real estate or questions regarding Steamboat Springs real estate or renting a home in Steamboat Springs, Colorado, feel free to call Charlie at 970-846-6435 or write me an email at: firstname.lastname@example.org.