COLD HARD FACTS BUT THERE IS HOPE

Dated: 10/20/2014

Views: 942

Rents are at an all-time high.  That’s just a fact.  If you haven’t paid attention to the news or tried to lease an apartment in the past year you may still think it’s 2010.  The cold hard fact is that rents are up a conservative 30% over the past 2 years.  All you have to do is look around the city to see the push developers are making to cash in on that increase.  Investors too are rushing to snap up any available property.  Renters from both Denver and out-of-state are feeling the sticker shock.  As an investor for over 15 years I can tell you that economic forces over the past decade not only pushed rents to almost record lows but that same force pushed housing values just as low.  The correction is here and it’s dramatic.  Almost anyone could buy in 2005, developers saw no need to build apartments that would lose money with high vacancy rates.  Inversely, when the housing market collapsed and people were no longer able to buy, there was a severe shortage of rental units.  That’s the cold hard facts but there is hope.  If you are a person that would rather look at the glass as half full consider this.   Interest rates are still at historical lows hovering around 3-4%.  My parents paid 21% for their first house!  While 2014 housing inventory has been low, we are going into the holiday cycle when there is less demand translating into a more favorable position for a buyer.  The cold hard fact is rents will continue to rise and renters will have no say as to how high they will go.  The hope is that more people will again embrace the housing market despite the roller coaster of the past decade.  On average the cost to own verses rent is less and that monthly mortgage payment won’t be subject to the whims of the market.  That’s just a fact.   -          Jeff McGahey -          10/20/2014

Jeff McGahey

As a Colorado native, real estate broker since 2006, and real estate investor for over 15 years I have the expertise and knowledge to help guide you and your family through the most important transact....

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