The Benefit of Low Property Taxes
Are you hearing about how home prices have soared in the Denver Metro Area in the past couple of years? That may be true. However, when comparing property tax rates, Denver is still affordable. Property taxes vary among states and counties. This added expense to a mortgage can mean a big difference in buying power and the value of your asset. Luckily, Colorado has some of the lowest property taxes in the country. That makes it more affordable than other cities to purchase a home in the Denver metro area.
Colorado’s low property tax rate means home buyers can afford to buy more house than they could in other states such as New York, California and Illinois.. Also, low property taxes are essential to people purchasing homes with cash. Once you own a home, your continued overhead costs include your property taxes, homeowner’s insurance, and in some cases, an Homeowners Association fee. Therefore, the lower the overhead costs, the better the investment.
The Benefit of Inexpensive Homeowners Insurance
Using the average home price in each city doesn’t necessarily mean that they are similar homes at the “average price.” Denver is affordable because, for $400,000, there are many options for single-family homes in good neighborhoods. On the other hand, in the Los Angeles Metropolitan Area, the homes that are around $570,000 are tiny in “upcoming neighborhoods.” If you’re moving from Denver to Chicago, you’re $400,000 budget quickly goes down to below $300,000 to keep the same mortgage payment.
Before deciding to uproot and move to another city, make sure to speak to a lender. Also, make sure to call your insurance company. The cost of homeowners insurance in various cities changes. For example, in Colorado, we tend to have expensive homeowners insurance because of hail damage. But, in California and Florida, they have to be insured for earthquakes, floods, and hurricanes. However, Texas is the 6th most expensive state for homeowners insurance. Keep in mind; homeowners insurance does not cover flood insurance and earthquake insurance. If your home requires these insurances by your lender, they could increase your monthly mortgage payment drastically. All in all, make sure you keep all of these factors in mind when deciding where to live. Because when it comes down to it, Denver is affordable.