2013 The Year of The Investor

In 2012 first time home buyers were seeing interest rates of 3.5% and less marking 2012 as having the lowest interest rates in recorded history. While a lot of the first time home buyers didn’t appreciate these incredible rates those that have purchased in the past sure did. As 2012 began to wrap up and buyers decided to wait out the winter home search for the summer home search the investors began to prowl.

Investors come in all shapes and sizes. Some are looking to buy homes that are in dire need of some TLC so they fix them up and flip them for a higher price. Other investors are looking for a solid rental that can be their nest egg for retirement. Then there are the other investors that know they were paying 11-15% interest rate when they bought their own house and now wish to pounce upon these record low rates for 2013.

No matter the investor they are always looking for the same thing – a deal. The days of coming in at 10-15% under asking price are long gone. Banks know the lack of inventory available and they aren’t budging on their prices. It seems the only steals available these days are HUD’s and they are investor free for the first 30 days and a lot of banks are doing 30 to 90 days home owner occupant offers only. That means that the only people who can afford to negotiate the price of their home are owner occupant sellers.

Denver Metro has the 11th highest rate of housing occupancy out of 109 large U.S. cities according to the 2011 U.S. Census Bureau. In fact 92.87% of the 1,084,397 were occupied last year. This means there’s room for rentals to grow. The only way to increase the amount of rentals within Denver Metro area is for either new apartments to be built or investors buying property and renting them out. Since lenders are becoming big sticklers on what they choose to lend on I’m guessing the latter will take on the most affect.

As the start of 2013 comes we find we’re still in a Seller’s Market. There’s very little inventory, there are a lot of buyers, and sellers are generally getting asking price or better. If you happen to be one of the people who got a steal before the market took a tumble or even after you’re now noticing the property values increasing. Investors are no fools and they notice it too. I’ve met quite a few investors that recently sold their home in 2012, made a fair amount of money, and now wish to use that money to snatch up investment properties left and right for rentals.

I wager that 2013 will the year of the investor. Interest rates are starting to tick up but not by much and if you have enough capital behind you the sky’s the limit on how many rental properties you can pick up. Rents are going up every 6 months as is which means a continuous growth for investors in the Denver Metro area. As rates increase more and more people will not qualify for the house of their dreams and will look towards the rentals that will be available because of the investors throughout 2013.

If you’ve thought about investing stop and give me a call. 2013 is your year! Let me show you how to calculate your monthly income and turn a rental into your nest egg. Let me guide you into buying multiple investment properties for either fix and flip scenarios or being a real estate mogul. Let me be a resource for you and show you how I can make you more money than you dreamed possible.

Marc Bayes is a Broker Associate with the Colorado Dream House Team, Keller Williams Realty DTC. Contact Marc at 303-619-3052, marc@coloradodreamhouse.com, codreamhouse.com or coloradodreamhouse.com

Start your Colorado Dream Home Search now!

Featured Listings