As the team works to deliver relevant information in an ever-changing climate, the message that we’re sending is foremost in my mind. I’m acutely aware that this newsletter might be more noise, and I shudder at the thought of seeming self-serving or insensitive to the current circumstances.
We were planning to wrap up our “Southern-Crawl” series by talking about the mass migration happening as people move from Denver to Colorado Springs to take advantage of a 10% decrease in the cost of living and lower Home prices. It seems trivial compared to the global health challenge that is changing our lives in unexpected ways. Still, in my conversations with clients this week, many are wanting to know if owning real estate is still a viable option for them and which investments are most safe.
I believe Colorado Springs *is* a safe investment. Mary Hyland, our Transaction Coordinator (and budding agent), talks about her move south in her blog this month. Her story is read-worthy, and The Springs is a market to watch and consider, especially in tough financial times.
Is owning real estate still a good investment option? Yes. According to U.S. News and World Report, Home values continued to increase during three of the last five recessions. Challenging times can knock us off our goals, but with preparation, we can secure a financial position to weather the storm. Heading into the upcoming months, here’s what you should consider if you own property or hope to purchase real estate.
Build your reserves. Have at least six months of mortgage payments in a liquid account.
- Homebuyers: If you are depleting your savings to purchase a Home, it’s best to wait until you can stock your coffers.
- Homeowners: If you are short of reserves, consider a cash-out refinance. Make sure that you leave at least 15% equity in your property.
If buying, be prepared to settle in. Purchase a property that you can see yourself in for the next five years. If you love the Home and are comfortable with the payment, it’s okay to move forward.
If selling, be the best house on the market. Active listings are being added daily, and Homes are still selling. The fundamentals always apply – make it pretty and be the best value.
We know the anxiety that can come with preparing to buy or sell a Home, especially now. We have systems in place to help you plan for or continue your Home journey during this transition. If you have questions or concerns about your specific circumstance, please call us. Mary, Sara, and I will gladly listen and provide sound guidance.