Renting and buying involve different costs, flexibility and responsibilities. This October 2023 article’s original infographic is retained below; its national statistics describe the period in which it was published and do not establish a Telluride investment result.
A fixed-rate mortgage can keep the principal-and-interest payment predictable for its term. Property taxes, insurance, HOA charges, utilities, maintenance and repairs can still change. Rent should be compared with that full ownership budget, together with the down payment, closing costs, moving costs and the time the household expects to stay.
The infographic’s Census rent illustration runs from 1988 through the second quarter of 2023. A national median asking-rent trend does not establish the rent increase a specific tenant will face or what a comparable Telluride home costs to own.
Principal repayment reduces mortgage debt; interest and other payment charges do not add equity dollar for dollar. Equity generally means property value less debt secured against it, so it can decrease when values fall or borrowing increases. Net sale proceeds also depend on loan payoff, transaction costs, taxes and other obligations.
The original graphic attributes an approximately $290,000 average U.S. homeowner equity figure to CoreLogic and a homeowner-versus-renter net-worth comparison to NAR’s Lawrence Yun. These historical group comparisons are not a forecast or proof that buying causes a particular household’s wealth to increase. The underlying sample and calculations are not reproduced on this page.
Renting can make a shorter stay or a later move easier, while ownership may provide more control over a home subject to legal and association rules. Ownership also brings maintenance responsibilities, transaction costs and exposure to changes in value. Compare the alternatives with the household’s cash reserves, income stability, financing and plans.
Mountain Rose Realty can help compare available properties and their features. Ask a lender for written financing scenarios and qualified tax or legal advisers about the implications for the household. No purchase can guarantee appreciation, financial stability or a profitable sale.