The Value of Real Estate, Part 2: Homeownership

Today I wanted to share another way that real estate can make your life better.

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Call me at 303-974-9471 for a FREE home buying or selling consultation to answer any of your real estate questions.

Why does real estate make your life better? The obvious answer is that it allows you to stop paying rent—something that people the world over would love to be able to do—to build equity and to establish a nest egg.

Think about it: No more landlords, no more rent hikes, no more waiting on someone else to make repairs, and no more worrying about whether or not your life is ever going to change.

When you buy a home, it’s yours. You get to explore and design the home to make it what you want it to be, no questions asked. The exception here is if you buy a home in an HOA (homeowners association) because they regulate what can or can’t be done to the outside of the home. But, for the most part, you have complete control over your home.
Owning a house can make your life better because it’s an extension of who you are and who you want to be.
One thing that my wife and I have been pondering recently is whether our identity right now as homeowners is who we want to be—does our home resemble us? We’ve already done a lot to it already, but now we’re wondering, “What’s the next step to make our home embody who we are as a family?”

For example, maybe it’s more land. I would love to have our house back up to open space with a view of the mountains in the background. I’d love a fourth garage where I could park an RV or a boat someday. I’d also love to have more space for dogs—it’s a crazy idea, but I’d love to have 12 dogs and, with open land, we’d have the space to accommodate them.

Owning a house can make your life better because it’s an extension of who you are and who you want to be. Homeownership is a vehicle for self-expression.

If you’ve thought about owning your own home, or upgrading to another home, give me a call. We’d love to chat with you more about your dream and what your home needs to look and feel like for you.

How to Build Wealth Through Real Estate With the “Two-Year Live and Move” Method

Buying multiple properties may seem like an out-of-reach goal, but today I’d like to share how accruing several houses through the “Two-Year Live and Move” method can help you earn wealth through real estate.

Buying a home? Click here to perform a full home search
Selling your home? Click here for a FREE Home Price Evaluation 

Call me at 303-974-9471 for a FREE home buying or selling consultation to answer any of your real estate questions.

At the Anderson Group, the idea that your life can be made better through real estate is the foundation of our company.

There are a few different ways this philosophy can manifest. For one thing, homeownership in and of itself can massively improve your quality of life. But what about buying multiple houses? If buying one house is beneficial, is buying several even more so?

Owning a lot of property is, of course, a dream many people share. It boosts your net worth and can even open up opportunities for earning passive income. That said, not everyone has the funds to buy and own more than one home at a time. If you’re on a fixed income, purchasing multiple properties might not seem like an attainable goal.

With all of this in mind, I’d like to share a method that can put this aspiration back within reach: The “Two-Year Live and Move” option. Here’s how it works:
The more investment properties you accrue, the more passive income you gain over time.
The first step is, of course, to buy a home. The next step is to live in the property for two years, building up equity as you do, and then to move on to your next home. Because your first home will likely have appreciated in the two years you lived there, you will be able to borrow from this equity to facilitate this move. Instead of needing to put 25% down, you’ll be able to buy your second home for just 3% or 5% down.

The catch is that, instead of selling your first home, you maintain ownership but turn it into a rental property. This passive income will allow you to continue paying off the property without dipping into your own personal funds.

The best part is that you can continue this process as many times as you want, accruing more and more investment properties (and, therefore, more and more passive income) over time.

If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.

What Kind of Return Can You Expect From Upgrading Your Home’s Decks and Doors?

Decks and front doors can both bring a high return on investment when properly upgraded.

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As we’ve discussed in previous messages, the relationship between cost and value when it comes to home upgrades is hugely important to buyers, sellers, and homeowners alike. Today, we’ll be talking about two home features—decks and doors—as they relate to this concept.

To illustrate why these features matter, allow me to share the story of my last home purchase.

A few years ago, my family and I were in the middle of buying our current home. At the time, the back yard was an absolute mess. The deck, in particular, was in need of a major upgrade. It had this unsightly square paneling, was poorly designed, and was far too small. The moment my family moved in, I knew that this deck was the first thing I wanted to change.

We ripped out the deck and replaced it entirely. The new deck we installed was a massive improvement. It was much larger, much more durable, and much better looking. We receive compliments on it all the time. It really is a showpiece. But what about its cost-to-value ratio?
Buying a second home and opening it up for short-term rent when you’re not there is a great way to pay the mortgage and even receive cash flow.
All told, this deck would bring a 91% return on investment if, or when, we sell this home. 

Moving on, upgraded front doors can also bring a return in the 90% range. I still haven’t upgraded my own front door, but I would definitely like to. A front door plays a massive role in your home’s exterior appearance. It often serves as a first impression, so it needs to look good and have a lot of character.

The thing to remember about making these or any other upgrades is that they should enhance, not overwhelm, the rest of your home. Everything you do to a given property should work toward a cohesive overall look and feel.

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

3 Questions to Consider When Thinking About Buying a Second Home

If buying a second home has been on your mind, there are three questions that’ll help you determine if it’s the right move for you.

Buying a home? Click here to perform a full home search
Selling your home? Click here for a FREE Home Price Evaluation 

Call me at 303-974-9471 for a FREE home buying or selling consultation to answer any of your real estate questions.

Buying a second home, for some, would be a dream come true—another home away from home. For others, it makes little sense. Those folks wonder, “Where is the value in buying a second home when I could Airbnb wherever I’d like to travel to in the world?” That question is fair, and they’re equally legitimate thoughts on the subject. 

If you’re someone who is leaning toward making this purchase, there are three questions you and your family should consider:

1. Is it going to be fun? A perk of buying a second home here in Colorado is that you’ll never be far from the mountains, and access to skiing, water, and hiking trails could make for long-term enjoyment for you and your family. 
Buying a second home and opening it up for short-term rent when you’re not there is a great way to pay the mortgage and even receive cash flow.
2. Could it make money for us? I’m speaking from experience, as my family and I bought a cabin for vacation stays and with the intention of renting it out when it wasn’t in use. Following the purchase, it didn’t take long before we had renters coming through, helping us shoulder the mortgage cost. This way, we can make visits when we like (Christmastime, the summer months, etc.) and allow renters to stay short-term for the rest of the year. Buying a second home and opening it up for short-term rent when you’re not there is a great way to pay the mortgage and even receive cash flow.

3. Can it grow? Don’t be dissuaded by the fact that growth may not be as rapid as it would be in, say, Denver. Instead, look at this purchase as a long-term investment that you can one day pass along to your children—putting the property in their name, creating an LLC, or buying it with your 401(k) are viable options. 

If you have any questions about buying a second home or if you need any help whatsoever with your real estate needs, please give me a call. I’d love to chat with you!

Check Out These Expert Market Predictions

What’s happening now in our local real estate market, and how will things play out through the rest of this year? Find out in today’s message.

Buying a home? Click here to perform a full home search
Selling your home? Click here for a FREE Home Price Evaluation 

Call me at 303-974-9471 for a FREE home buying or selling consultation to answer any of your real estate questions.

Now that we’ve entered the new year, we’d like to take a moment and share our predictions for what lies ahead. Will our market cool off? Will it stay hot? Let’s discuss these points and more.

First of all, our team doesn’t anticipate a market slowdown as we progress into 2019. There may be periods of cooling, but we believe conditions will remain hot in general. Why? Well, there’s still not enough inventory to sustain current demand. Builders are selling out more quickly than they can build, and there are fewer resale homes on the market, as well.
I don’t have a crystal ball, but these predictions are my best estimation of what the future of local real estate will hold.
Beyond the low inventory, interest rates are still historically low. This, along with currently high rental rates, serves as a strong incentive for people to get out in the market and buy.

Of course, I don’t have a crystal ball, but these predictions are my best estimation of what the future of local real estate will hold.

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

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