(Newswire.net — September 7, 2016) Aurora, Colorado — Alan Dubelman discusses the real estate situation in Denver and the surrounding areas and provides a few tips for those who are planning to buy a property in one of these locations. Alan is a medical professional with an extensive clinical background and is also a finance expert with a masters in Finance.
Denver only saw a slight home price boom in the middle of the 2000s since there was always more land to build properties on. Moreover, there was only a mild bust in the area. However, with the recent increase in jobs, the prices of properties are going up again. In fact they are already up 14% in Denver and Boulder in the last year and 12% in Ft. Collins. Another year of higher prices will be seen as the fracking boom is nearing the end, but slower increases will follow after that, with a total increase of 35% in the next three years. Recent prices are strongest in Denver and Arapahoe counties, but Alan expects the strongest future prices to take place in Douglas and Adams Counties.
Home prices are currently highest in Boulder, Alan says, but Denver has the highest percentage of renters, which is about 50%. Denver County is experiencing the lowest rents as well since many renters dwell in larger apartment buildings. The high price-to-rent ratio makes splitting single family properties into rental units for the huge staff and student population in Boulder a good investment plan. Alan strongly suggests that those who are planning to buy a home or make any single-family rental investment should do this as soon as possible since prices are rising quite sharply, and will continue to do so in the next few years.
According to Alan, the best potential property investment in Denver County right now would be apartment developments, while straight single family properties split into real units seem to have the greatest potential in Boulder. Straight single-family rentals have the best potential in Adams County, as well as investments for retail restaurants. He adds that construction loans will have low risk, but that default risk for mortgages will go up in a few years as Boulder and Denver become overpriced.
Investments in apartment buildings are considered to have the most success in the short run as rents rise steadily, although slower growth of the fracking industry is discouraging longer-term investments. Meanwhile, mortgages are a great investment in the present as rising home prices will rapidly grow equity cushions. However, higher home price will later produce an overpriced situation, which translates to higher default risk.
About Alan Dubelman
Alan Dubelman is a finance expert with a masters in Finance from the University of Denver. His areas of expertise include corporate finance, financial modeling, and compliance and marketing. Alan is also a medical professional with an extensive clinical background.