The real estate market in Denver is hot and the question can come up, is it better to rent or buy in a hot real estate market? The answer depends on a lot of things and only you can answer it.
First time home buyers
The market in Denver can be really difficult right now for both buyers and renters. First time buyers have it tough because the homes normally available to first time home buyers are now higher priced and out of reach or are very hard to find, but they are also getting priced out of the rental market as well. So what can you do?
Weigh your options
In order to make a decision, weigh your options. Would it be better for you to continue to rent for awhile? If not, are you willing to find a property below your expectations that may need work? Sometimes that is a good idea if the ready to move in homes are out of your price range. Also look in up and coming neighborhoods. They may not be ideal… yet. Those that appear to be getting popular will mean your investment will give you the equity you need to move up later.
Be sure to save your pennies
Having a substantial down payment can help you get a home when people with smaller amounts saved find it harder to buy. Having more to put down can help you get that house too. You look like a better potential buyer to a seller entertaining multiple offers and it could give you an edge.
Rental potential properties
Look for a property that could have rental potential. Either through an income suite or later when you decide to move up. An income suite could provide you with the ability to purchase a higher priced home because the income will help with the mortgage.
Your best bet is to talk with a Realtor to help you figure out when the best time to buy for YOU might be.