How the Fed’s Recent Rate Hike Impacts Our Market

Dear Friends & Clients, On June 14th, the Federal Reserve increased its federal funds interest rate by a quarter of a percent. They are also widely expected to raise rates once or twice more over the course of 2017. While any action by the Fed always garners a lot of attention, I believe these increases will not have any significant impact on the real estate market. Here's why… Fed Rate Increase Means GOOD News For The Housing Market! 1) Mortgage rates stay low & may drop. 2) Economy continues to thrive. 3) Rate increase introduces economic balance and may act as a stimulant. First, mortgage rates have actually trended lower in the wake of the Fed's recent announcement. The 30-year mortgage rate recently hit 3.9%, the lowest level in 2017. In fact, it's a common pattern for the mortgage rate and the Fed rate to move in opposite directions, and the same thing has happened the last two times the Fed raised rates. Second, the economy continues to do well. The Fed decided to increase its rate because unemployment and inflation are low, household spending is picking up, and we've seen steady growth for the past nine years. This is all good news for the real estate market. And, as expected, we continue to see strong demand and a corresponding increase in home prices. Third, while the Fed's rate increase is normally meant to cool off the economy, it might actually stimulate it in this case. Because interest rates were so low for such a long time, experts believe the recent increases might ease pressure on the financial system and encourage lending. Here's a key statistic that supports this view. Since the Fed started raising its rate in December 2016, total mortgages are up 2.5% year over year. In conclusion, while any move by the Fed is likely to lead to a lot of hand wringing, I believe the real estate market will not be affected, and will continue on its own healthy course. Nonetheless, it is clear that right now is a uniquely good moment for everyone in the real estate market. Today’s low mortgage rates are good for homebuyers because they make homes more affordable. If you are considering a new home, check out the many great homes that have recently come on the Denver market: Click Here for all available Denver homes for sale At the same time, if you are thinking of selling, then the current price levels and tight supply mean you will be able to sell quickly and for top dollar. If you want get an idea of what your home is worth in the current market, simply fill out this form: Click Here & Enter your street address to find out what your home is worth And if you have any questions about the Denver Real Estate Market, whether you're buying or selling, give me a call at 303-523-4364. We will provide excellence in customer service and market acumen & strategy. We are Industry Experts in Denver Metro Real Estate and deliver Uncompromised RESULTS!

How Can You Use Your IRA or 401(k) to Invest in Real Estate?

By using your IRA or 401(k) to invest in real estate, you can increase its annual 
growth by a considerable margin.

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.

Have you ever heard of a self-directed IRA or 401(k)?

Like many of us, you probably have a healthy 401(k) or IRA that’s been built up over the years and you’re now letting the market go to work on it. That’s totally fine, but here’s the exciting part: you can direct that money into a self-directed plan and use it to buy investment properties. 

Think of that IRA or 401(k) money as funds to be used for investments. There are some restrictions, but if that money is producing a return for you, you can use it for any vehicle.

How would this benefit you?

Imagine you had $200,000 in an IRA or 401(k) and you wanted to use that to buy a $200,000 condo. You’d be able to buy that condo free and clear, and then rent it out and start collecting rents checks. If you charged $2,000 a month, that’s $24,000 per year that would go back into your IRA or 401(k). 

As that investment appreciates over time, you could sell it down the road for—say—$400,000. That’s on top of the $24,000 you’ve been collecting on a yearly basis from your renter(s). Additionally, you’re allowed to contribute to your IRA or 401(k) every year. Some allow as little as $5,000, but some allow a contribution as high as $55,000. 

This way, you can almost quadruple the growth of your IRA or 401(k) instead of just letting it sit on the market. 

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You can quadruple the growth of your IRA or 401(k).

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If you’d like to learn more about using your IRA or 401(k) to invest in real estate or you have any other questions, please don’t hesitate to give me a call. We’d be happy to help.

How a Waterfall Can Add Value to Your Home

A waterfall may seem like a luxury purchase, but they can actually add a lot of value 

to your home.

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.

Back in 2010, I bought a new house with a beautiful backyard. It was full of Juniper trees at the time, but I had visions of a big, gorgeous waterfall. 

I spent a lot of time and money on this project, but I was very happy with the end result. As you walk out onto our back deck, the waterfall is a beautiful sight. You can admire it from afar or get up close and let the cascading waves refresh you on a hot day. It was such a great thing for my family, but did it add value to my house?

In order for a waterfall to add value to your home, it has to check three different boxes. It has to be useful, it has to be beautiful, and it has to be safe. Don’t just add a waterfall because you want to block a sight or as just an accessory. If you make it eye-catching, useful, and safe for children, you’re going to get a return.

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Waterfalls can add a lot of value if constructed properly.

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Whether you get a dollar for dollar return depends on the situation. You might even get more than that for it because if it’s done right, it creates an easy-to-maintain oasis.

If you have any questions about adding a waterfall to your home or anything else relating to real estate, give me a call or send me an email. I would love to hear from you.

How Do We Know When We’re at the Market Peak?

Are we at the peak of the market? Not yet, but we won’t know we were at it until it’s behind us.

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.

Have you ever been hiking and when you think you’re finally at the peak, you’re actually just at a false summit and there is a bit more to climb? If you’re an avid hiker, you know what I mean. Once you’re at that plateau, all you’ve got is a bit more of an incline to get to the top. You’ve done the hard, steep climbing already. That’s what the market is like right now in Denver.

We’ve taken our biggest vertical ascent already and are now at the point where we are inching up until we get to the peak. I think it will be another four or five years before we get there, but we won’t see that sharp appreciation that we’ve been seeing for the last few years.

This makes now a great time to consider selling. In my opinion, we don’t have too much more room for growth. The properties that are coming on the market right now are the properties that sellers have been meticulously preparing as they wait for this moment. These are properties with the best locations and best upgrades, and those sellers are listing now. If your home has an amazing location and tons of upgrades, now is a perfect time to sell high and buy low.

You’ll never know that you’re at the peak of the market while you’re in the moment, but you certainly will know when you’re off of it and you don’t want to be behind it. I believe in my heart that we are past the biggest jumps in appreciation in this market and from here on out, appreciation will be much slower. 

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You don’t want to be behind the peak.

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If you’d like to discuss this topic further or if you are interested in taking advantage of the market, give me a call or send me an email. I would love to hear from you.