Denver Homes

By: Denverhomesearches

When conducting a for yourself and your family, you may want to apply the viewpoint of an investor. All too often I work with people who are focused on their immediate needs and do not look to the future. It sounds something like this:

"We have 2 kids, a mother in law from Texas who will visit us; I want an office, so we need 5+ bedrooms, and at least 3 bathrooms. I have a budget of $250,000 and I want a home that is newer as opposed to older. We need a good school system for our grade school children, and my husband would like to be no more than 20 minutes from his office, but would prefer 15." He works downtown."

Recently, Denver has experienced slow growth in residential real estate, with a small number of outlying neighborhoods dropping in values for the first time in years. Simply put, this is a challenging time for buying . Juxtaposed to this current picture is the interest rate market. Having recently experienced 40 year lows in interest rates, they are beginning to slowly rise. While more recent values of have reached a plateau with smaller appreciation levels, the squeeze that is applied by interest rates make the affordability of homes more of a challenge. Purchasing a home 6 months ago for $250,000 will cost more today in your monthly payment. Many families are lowering their purchase price to meet payment limits they can afford.

An investor however looks at the purchase of a house as an investment with a future value in mind. They ask themselves a future question, today.

"If I sell this home in 30 days, 6 months or 1 year from now, what do I get by purchasing it today, and for which price?"

When facing the purchase of a home, you are making what will likely be your largest purchase of your lifetime. As such, this may likely prove to be the largest investment of your life. Ask yourself a simple question: What do I get, for how much, and by when?

By asking yourself this 3 part question, you imply many smaller but important questions such as:

1)How long might I expect to stay in this home?

2)When I would move out, would I likely move up in value to a bigger home?

3)Do I expect to make more money in 5 or ? years from now, or will I be retired?

4)Do I need the value of this home to increase as much as possible based on my future needs as I see them today? Might I need to sell quickly for many possible scenarios with my work or my children's schooling?

There are many other questions that you could ask yourself based on your situation. By asking these questions, you may come up with a very different profile of what you should purchase today.

For example:

If I know that my job puts me in Denver for a one or two year period before my return to the home office in Chicago, I may want to purchase a home that gives my family the best location to enjoy what Denver has to offer for a year or two. I may instead, decide to purchase a smaller home and an older home downtown with access to shopping, entertainment, arts, book clubs, foreign language immersion for my daughter, etc. In addition, I want to be in an area of high demand so that I can easily sell my home in 2 years. I also want a home that is pretty much fixed up as I will not have much time in my 2 years to do upgrades. I may have to settle for a 3 bedroom home, closer in town, nicely finished, and with easy access to feeder streets and downtown.

So after careful analysis of ones situation, by asking yourself the future 3 part question, you get the best answer. You rent!

America Properties
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