By David Parks · eXp Realty · The Apollo Group · 2 min read
Buying builds equity and gives stability, while renting offers flexibility and lower upfront costs. The right choice depends on how long you will stay and your total monthly costs.
Beyond the mortgage, add property taxes, homeowners insurance, HOA dues, maintenance, and utilities. A common planning guide is to budget about 1 percent of the home’s value per year for repairs. You also pay closing costs when you buy and selling costs later.
Rent can rise, and you do not build equity. But you are not responsible for major repairs, and moving is simpler. Renters insurance is usually inexpensive.
Because buying and selling have transaction costs, buying generally makes more sense if you plan to stay for several years. A shorter time horizon may favor renting.
Compare total monthly costs for each, then look at what you would build in equity. Use the mortgage calculator to estimate a payment, and talk with a lender about your options.
Consider stability, control over your space, and your plans for the next five to ten years.
This article is general information, not legal, tax, financial or inspection advice. Every home and situation is different, so confirm details with a licensed inspector, lender, attorney or tax professional.
David is a Greater Denver real estate advisor with eXp Realty and The Apollo Group (Colorado broker license FA100103211). He has closed more than $55 million in volume, earned eXp Icon status in 2025, and holds a 5.0 rating on Zillow from 27 verified reviews.
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