Real Estate News: Investing in Colorado Properties
Since the beginning of this year, Denver housing market remains strong and desirable. Inventory is at record lows, home prices continue to rise and foreclosure activity is slowly dwindling since the 2007 downturn. Spring and summer is the time for selling houses and April, May, June, and July typically account for more than 40 percent of all housing transactions annually mostly because of the fantastic weather!
For years investors have been buying rental properties in popular neighborhoods in Colorado to build their long-term wealth. This is because Colorado’s record low vacancy rate is a big driver of why rental property has performed so well! Basically, the lower the vacancy rate the higher the demand for the property. More demand means landlords can be more selective with prospective tenants and can also charge higher rents. Rents have skyrocketed the past few years because the vacancy rates have remained so low.
One of the reasons vacancy rates are so low is that many people still cannot qualify for a loan. Lending guidelines are still much stricter than they were a few years ago leaving vacancy rates low and investors happy. If you’ve ever thought of investing in a condo or house as a rental property call me and I can show you what the numbers look like and what options you might have.