estate planning denver
Why It’s Better To Buy, and Not Rent, Denver Real Estate
While home ownership in America was once seen as a stabilizing economic force, the housing bubble of the past decade pushed many into mortgages that they couldn’t afford when the housing market crashed in 2007. The overleveraging of credit through risky mortgages was seen as a symptom of flawed tax and housing policies, and renting, not buying, is being promoted by some as a safer way to ensure economic stability (1). But the logic behind this new rationale is now flawed, especially in the Front Range where Denver real estate conditions are much improved.
Denver commercial property was indeed overpriced during the real estate bubble that developed from 2000 to 2007. But as Andy Knudtsen of Economic and Planning Systems, Inc. shows, property prices in the Denver area have actually fallen 12 percent since the bubble burst, stabilizing in March of 2009 (2). This means that consumers looking for Denver homes for sale can now get good deals on properties that feature low, stable prices.
In fact, the 12 percent average drop in Denver real estate prices was much smaller than in certain areas of the metro area, such as Glendale, where certain Denver condos and apartment prices dropped 33 percent from 2005 to 2010. Often these larger drops in real estate prices were in newer properties and buildings, whose facilities and locations are just as prime now, but whose prices are much more reasonable.
Of course, for homebuyers who purchased Denver real estate between 2000 and 2007, this means that the price of their Denver property is most likely lower than when they first purchased. For these property owners, there is a silver lining. For starters, rental rates are increasing at a steady pace and vacancy rates are near a 10-year low (2), so there aren’t many other options that would be better than their home. Furthermore, foreclosure rates are dropping (3) and the state’s population is still increasing by double-digit rates, meaning demand for Denver real estate should return.
For new homeowners not bogged by underwater mortgages, this is a great time to be looking for Denver homes for sale. With Denver property at reduced prices, and many foreclosed houses selling for steep discounts, now is a great time for any Denver homebuyer, whether looking for an investment or a great home to live in. With property values stabilized and the state’s population increasing, look for Denver property values to increase in the coming years, keeping Denver real estate as the strong, stabilizing asset it almost always has been.
(1) http://www.npr.org/templates/story/story.php?storyId=128000174
(2) https://dola.colorado.gov/app_uploads/docs/CO Housing Now 101110.pdf
(3) http://www.bizjournals.com/denver/news/2010/11/11/foreclosure-Q3.html
About the Author
Howard Applegate writes on various business topics including the Denver real estate market and physician recruiting and medical staffing.
I want to Invest in Real Estate in India, How do I go about it???
Looking for people who want to Invest in Real Estate in India… I have business plan… need strong backup… Venture Capitalist… I am presently based in Denver Colorado.
I was looking at investing in Goa but boy is it a kettle of fish. First, if you are a NRI, meaning non resident Indian you get dinged here and there and then some more. There are so many laws about foreigners owning property you will need a good lawyer who speaks perfect English, Hindi and have some people in their office that speaks a few other languages as well. India is booming so fast right now you will have to get while the getting is good. And also, just so you know…this is the land of bribes..you still have to grease palms. Also if you do invest be careful about the deed. One place we looked at and almost bought had this snag in the deed, The guy selling it to us had the deed yes…but how it works is there could be 40 people on the deed, cousins, third cousins etc…they all have to agree to sell and sign, problem being is that a lot of land was passed down on verbal contract. So you could buy the property, be doing your thing and 5 years down the road they can drag you into court and actually win because the property was illegally sold. Just make sure you do your homework or you can get royally screwed.
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