As seen in the Daily Camera
For someone just entering investment real estate, the task can be daunting and it may never seem like the best time to move forward.
To get started, RE/MAX of Boulder agent and experienced real estate investor John McElveen advises first time home buyers to save 10-20 percent of what they earn. “Once you save enough, purchase a property as an owner or occupant,” says McElveen. After 1-2 years, purchase another house and live there while renting out your previous home. Repeat.
This is how he’s been doing it successfully for 20 years.
Getting started is the hardest part, but with real estate prices projected to rise over the coming years, there really is no time like the present.
“I hear so many people saying, ‘I should have bought property 20 years ago,’” says Andrew Muller, a seasoned investor of 25 years. “If you buy now, you won’t be saying, ‘I should have,’ 20 years from now.”
RE/MAX of Boulder’s Pete Abel agrees with the ‘no time like the present’ theory, advising investors to “buy real estate and wait—don’t wait to buy real estate.”
Andrew Muller stands by his claim that real estate is the most secure investment a person can make. Unlike the stock market, “the buyer is in control,” Muller explains. Adding a bedroom or remodeling a kitchen is a surefire way to boost a home’s equity. Not to mention, a home’s mortgage is paid off with someone else’s money if the owner is renting out the property.
Furthermore, “the IRS loves landlords,” Muller explains. A home’s appreciation is not taxed until an owner sells. Home owners can get tax breaks on a portion of the income generated by renting out a property. Because rent goes up over time, real estate becomes a great investment. Even if you aren’t looking to be a landlord, the housing market in Boulder almost guarantees a healthy ROI.
With the current low number of vacancies, difficulty of loan obtainment, and lack of home building, it may seem like a time to be bullish about purchasing investment real estate. In reality, Colorado’s real estate market is strong and a wise investment opportunity.
For more information, contact your RE/MAX of Boulder agent.
Pete Abel (303) 441-5603—John McElveen (303) 441-5652—Andrew Muller (303) 434-6633