Looking to stay in Denver Colorado real estate for several years? Then buying that horse property in Denver could be your best financial and personal option. Buying gives residents freedom to comfortably decorate their Denver homes to suit to personal tastes and to enhance their properties. In the long term, buying Denver real estate has also statistically outperformed renting in terms of investment returns.
Even so, buyers of Denver CO real estate must scrutinize the trends, the neighborhoods, and have their final pick inspected. Your professional real-estate agent has access to knowledge about all of the areas including employment and educational information. Additionally, real-estate professionals can find out about future developments, new laws and rules, and other factors that could affect your decision. If a fixer-upper is being considered, then it is best to obtain two or three estimates for the time and materials required to bring the home up to snuff. Unseen costs can ruin the entire investment.
Even if housing prices remain relatively stagnant, time is on the side of the homeowner. The worst 10-year home-price return was 2.5 percent between 1963 and 2005, according to MONEY Magazine in January 2008. In many cases, this plus factor remains true, even if the monthly mortgage payment is more than the monthly rent payment would be. However, people with unstable incomes may want to shy away from the long-term commitment to mortgage payments.
Retirement also present a unique set of variables. Boomers looking to sell their primary homes and downsize may be surprised to learn that they could be better off turning the entire proceeds into a fixed annuity. Renting may save homeowner expenses such as maintenance, association fees, and property taxes and all of these costs need to be carefully factored into the equation.
A retiring couple sells a $350,000 mortgage-free home, planning to pick up a retirement home for $175,000. Net gain will be about $152,000. Putting that money into an annuity, the couple would get a lifetime $10,500 each year. Now, if they decide to rent instead, they would have about $329,000 to put into the annuity, netting about $23,000 a year. However, purchasing still beats renting if they purchase the right retirement home in the right place as described above and hold onto it for several years.
For more information about farms, horse properties, and real estate in the greater metro area, call Michael Paul of Realty Oasis at (303) 268-6052.
