Renting near the University usually means one of two areas - The Hill on the west side of campus or the east side of campus (which runs from Baseline to Arapahoe Ave).
RENTING
- Many of the rental properties close to CU are older and charge premium rents - $600-$750 per bedroom
- Some rental properties are not maintained in good condition
- Paying rent is, just that, paying rent
- 3 years at $600 per month (usually plus utilities and other costs), so $700 per month x 36 months = $25,200 over 3 years.
BUYING
Purchase of a 3 bedroom condo:
- $380,000 price, 20% down of $76,000, loan of $304,000
- 6% interest only loan, monthly cost in interest $1,520
- Additional monthly costs: $200 property taxes, $200 condo fees, total monthly costs $1,920
- Rent charged for 2 bedrooms at $650 per bedroom = $1300, rent due for your student = $620
In this example, your 3 year cost would be the same as paying rent - but, you have an asset, which in Boulder has traditionally meant an increase in value. If you net $25,000 or more for the 3 years, it is an excellent investment.
See Comparable Sales for past real estate value increases. Note, also, that there are a number of loan programs available and different type of down payments, so that you may be able to purchase with 10% or 0% down, depending on your situation.
And please call if you have any questions.
Tom Kalinski - 303.441.5620
