The Denver Economy
The Economy got you scared? Now is the best time to Invest in Denver Real Estate!During an economic scare, our natural tendency is to close ranks, avoid risk, and not start anything new. But in reality, that attitude is far too limiting, and will result in missed opportunities. We are in the midst of a serious national housing crisis, the causes of which include poor lending practices and the shielding of real risk through complicated derivative instruments. But it’s not all the fault of the bankers, although they definitely take the lion’s share of the blame. The housing boom did tempt some homeowners to exercise poor judgment in taking out second mortgages and refinancing their homes on inflated values. In some areas of the country, average selling prices are decreasing and some Denver homes are losing value—although it’s important to note that Denver remains one of the most resilient real estate markets in the nation. And while this is hard to face if it’s your Denver home that’s losing value, in the big picture, it had to happen. Certain parts of the country were greatly overpriced, and investing in these overheated markets has never been a good idea.
Investing in Denver Real Estate Makes Good Sense – Now More than Ever!This is not the time to pull out of the Denver residential real estate market—it’s the time to put more into it. Denver housing prices are more realistic today than they were just a few years ago, and for the investor, this is good. Investing in Denver residential real estate is still a good idea, it’s just the strategies that have shifted. The quick buy-and-flip strategy worked when the market was unrealistically skyrocketing. Back then, you could buy a home for $250,000, and sell it for a $50,000 profit a few months later without having made any meaningful improvements to it. It was great while it lasted, but that really wasn’t a healthy trend. Today’s strategy is more long-term. There is still profit to be made, and prices will appreciate over the long haul. Buy-and-hold will still yield cash flow from rental incomes, use of property management services from Denver Real Estate Moguls Property Management will take care of the day-to-day concerns, and buy/hold/and sell later will still take advantage of the current low prices and the inevitable return to a steady year-over-year increase.
Now would be an excellent time to read our Introductory Investor article on Investment Strategies!