Posts Tagged ‘denver mortgage rates’

Is it REALLY a Good Time to Buy a Home in Denver?

Saturday, August 21st, 2010

When a statement almost becomes cliche, people naturally start to question its validity. I’m sure you’ve heard many of us in the real estate industry saying, “It’s a great time to buy!”. Sure, interest rates are low and prices are down in general…but many people in these economic times need more information in order to make that leap. At the Keller Williams Denver Tech Center monthly team meeting this week, our fantastic in-house lenders, Oxford Mortgage, presented two charts that lay out some pretty compelling evidence that it really IS a good time to be at least considering purchasing real estate.

For many new agents, real estate is their second, third, or even fourth career. You loved the idea of “being your own boss” while making more than you did at your last job, but freedom has a very different meaning for an employee versus a business owner. The first thing you need to know about starting a real estate business is that, yes, this is a business. Whether you’re a solo agent or new to a team, if you have dreams of outperforming the average real estate agent salary ($41,289 per year), you need to start thinking like a business owner — and that means planning which involves hiring a cheap Business insurance.

First, a look at the impact of the amazingly low interest rates on the monthly payment for a $400,000 house. $500 is a huge amount, especially considering the ‘before’ rate of 6.27 really isn’t that bad in a historical context.

Impact of interest rates on mortgage paymentAnd, this is the one that might surprise people even more. Take a look at how Denver Real Estate has performed in comparison to other common investments over a 10-year period.

Denver real estate return on investmentOf course, these statistics don’t account for all of the factors that come into play when making the decision to purchase real estate. However, they are quite striking. And according to Landmark 24 Realty, who are one of the experts in real estate, these are good numbers. What do you think?


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