Friday Fun Facts!
Friday Fun Facts – Mortgage Rates
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2017 Windermere Forecast
What Are Your Intentions?
As I start to talk with my brokers here at Windermere about goal setting, business planning, and calendaring for 2017, the conversation revolves around INTENTIONS. Goals are great (and we need to have them!), but it is very powerful to talk about what your vision is and what your intentions are for the next year.
I bring this up, because what are you going to DO (not try to do) in 2017? Do you have an intention of purchasing an investment property as a step towards being financially free? Or are you going to take advange of your newfound equity in your home and get something to fit your growing family? Or maybe you are FINALLY tired of paying the huge rental premiums to rent a home in Fort Collins.
If you set those intentions for the upcoming year and any of those involve a change in real estate and you have questions, remember I'm here even if it is just to bounch ideas off of. I'll tell you my intentions for this upcoming year (the more people that know the more accountable you are!) are to purchase two more investment properties.
I'd love to know what your intentions are for next year, and remember if you start working on them on January 1st you're late to the game!
Investment Properties, Rents, and Prices
I often get the question, why should I buy an investment property while prices are so high? I will get to the answer to that question, but that question makes an incorrect assumption. It assumes that prices are high right now, and we should all wait to buy an investment property until prices go "back down". Now of course I don't have a crystal ball, but with the lack of inventory, the population growth in Larimer County, and the lack of buildable lots, there is a very low chance of prices falling below where they are today in the next 5 or so years. We will probably see a slow down in the rate of price increases, but that still means price increases.
So back to the answer to the original question, and it lies with two pieces of the puzzle. Rents and Interest Rates. I started selling investment properties in Fort Collins 11 years ago, when the average price was closer to $200,000. A 3 bedroom 2 bath near the CSU campus was selling for $180,000. That same home today would be selling for at least $280,000, but our cash flow numbers are higher today than they were back then! Rents have increased at a faster rate than prices, so even though your monthly mortgage payment is higher, your rents are by percentage even higher than they were "back in the day". Also, with interest rates almost HALF of what they were 10 years ago, you are paying much less interest in that mortgage payment, also making the increase in mortgage payment slower than rents.
I have clients that have purchased many investment properties in the last two years during this time of price increases, but their numbers are fantastic on both cash flow and appreciation! If you have any questions or would like to learn more, give me a call or go to my investment property webinar. I'd love to help you!
October KEVCO Newsletter
Click below to check out our latest newsletter! See reasons fall might be the time to buy, renting vs buying, and awesome camel facts!
June KEVCO Newsletter
If you are interested in what is going on here in the Fort Collins real estate market click the link below!
Fort Collins/Loveland Vacancy Rates “Critically Low”
As vacancy rates fall and rent numbers rise, Fort Collins is becoming an even BETTER place to invest your money! It also mentions in this Coloradoan article that around campus the vacancy rates are below 1%! This again shows that the student rental market is where it’s at for investment properties in Fort Collins. Here at KEVCO for the properties we manage (over 300) we have been at 0% for the last 3 years for the August-July lease timeframes.
As more rental properties come on the market, they will be selling quickly and potentially at a premium. So, if you have an investment property that you’ve been thinking about selling, now is most certainly the time. Give me a call or shoot me an email with questions, I hope you have a great week!