Investing – Food For Thought by Phil Booth

Have you considered purchasing an investment property as part of your overall investing strategy?  Here is some food for thought about real estate investment in Boulder and the Surrounding Areas.
INVENTORY

In the City of Boulder this fall (2019), there is 50% more real estate inventory (active listings on the market) than last fall (2018).

This means that there are more options to buy, more listings that have been sitting on the market for an extended period and, going into winter, more motivated sellers. And it means that there are some really good deals to be discovered!

STABILITY AND GROWTH!

A recent “SmartAsset” study found that if you want to buy a home that’s likely to grow in value, Boulder is the number one choice in the entire USA.   Looking at data for 358 metro areas in the U.S. Boulder was found to be the U.S. housing market with the most stability and growth.

https://smartasset.com/mortgage/best-housing-markets-for-growth-and-stability-2019


CONVINCING REASONS TO INVEST IN REAL ESTATE
  • Best long term investment.  Real estate has outranked stocks & mutual funds, gold, savings accounts, CDs, and bonds as the best long term investment among Americans for the last 6 years.
  • High Leverage.  By only having to actually invest 20-25% of the purchase price, while realizing appreciation on 100% of the value, you are leveraging your investment at a 1:4 or 1:5 ratio… now that is putting your money to work!
  • High Appreciation.  In the four year period from January 2015 to January 2019, across the City of Boulder real estate market, property owners saw an average appreciation of 57%  YIKES!
  • Tax benefits.  Tax deductions include interest from mortgage payments, repairs & maintenance, depreciation, insurance premiums and HOA fees.
  • Retirement Income. Rental income can be a great source of passive income.
  • Diversify Your Assets. Diversification in investments lessens your risk of loss.  Do you have all of your eggs (retirement savings) in one basket (eg. stocks)?   Having a real estate investment property represents a safe basket.
  • AND… at last check, real estate is the only investment you can also live in!

HOW MUCH MONEY DO YOU NEED?

With $100k to leverage into a property you could purchase a single family home in Boulder County (Longmont) and see your investment cash flow with rental income.  Likewise, with $350k you could see an investment property in the City of Boulder cash flow.


DON’T WANT THE HEADACHES OF MANAGING THE PROPERTY?

Professional property management is a great option if managing the tenants and property is not your ‘cup of tea’.  Once a property is rented, management companies generally charge around 10% of rent each month.

Fore more information about investing in real estate, please reach out to Phil below!

Phil Booth
Realtor ®, SRES
(Certified Senior Real Estate Specialist)
303.817.8307
Phil@ColoradoLandmark.com 

 

 

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