Why Buying Real Estate is a Safe Stable Investment
Segment 4
Why Real Estate is a Safe and Stable Invesmtnet – Hot New Listings
Barb many people have concerns of market values going down and getting stuck owing more than its worth. Do you think that is where we are headed or is real estate a good investment?
1. People Need Housing
2. Cost of Rental Housing Very High Now
3. Average Price Increase over LONG Term
a. Feb 2013 = $231k
b. Aug 2021 - $499K
2. Look back since 1985 price increases
a. Prices went down in late 80s
b. Early 200s
Both times banking issues
Leverage:
$300,000 Home, Average Appreciation = 8% (normal market)
Note Average appreciation since 2012 = 11%
PriceAppreciationTimeValue$300,0008%Year 1$324,000$324,0008%Year 2$350,000$350,0008%Year 3$377,000$377,0008%Year 4$408,000$408,0008%Year 5$440,000Can you make $140,000 in 5 Years Paying Rent?
Cost of Waiting:
Rents INCREASE
Prices INCREASE
Interest Rates INCREASE
Payments INCREASE
Interest Rates Still VERY LOW – 2.5 to 3.0
Payments Same as 2005 – 16 Years Ago Due to Low Interest Rates
Will Interest Rates Rise???
Wish I Knew
Probably
When I started in biz people were Happy over 7%
For Now:
Fed Printing Money to Keep Rates Down
Helps Stock Market
Adds to National Debt
No Matter What Fed Does: People Need Housing!
If you are thinking of making a move and would like
Tips on how to prepare and position your home to command top dollar
Get a great idea on how much your home will sell for in this market call us at 719 301 3900
Barb, its time for the Lightning round of some of your Hot New Listings, tell us about them.
1. 12900 Stone Valley Dr, Peyton CO $450K
2. 1354 Tonka Ave, $449,999
3. 305 Grand Blvd, $315K, CS CO
4. 740 Sunrise Cir, WPK, $899K
5. 501 S Siesta Way Pueblo West CO $1.2M
6. 4124 Round Hills Cir, CS CO 80922, $459,999
7. 2420 Telemark Ct, CS CO 80918, $399,999