We get quite a bit of existing or new investors who ask us about the best time to buy an investment property in the Denver, Colorado market. There isn’t a clear black or white answer, but rather a few things that you should think about when purchasing an investment property.

It’s important to understand that Real Estate moves slower than stocks when it comes to investing your money.  When everyone else is selling out to pull the cash from their homes and their investment portfolios, a brave investor will keep their properties through all the ups and downs that come with the market.

In short? Any time is the best time to invest and buy

As Property Managers, we understand the complexities when it comes to owning an investment property. Some of us have been in the Denver real estate market for over 10 years, so it’s clear to see that the real estate market dips, but overall it’s only grown tremendously. In the last 10 years, Denver has experienced some of the highest home appreciation rates of any community in the nation. Denver real estate appreciated 105.82% over the last ten years, which is an average annual home appreciation rate of 7.49%, putting Denver in the top 10% nationally for real estate appreciation.

Buy when it’s a buyers market

What is a “buyers market”? In economics terms, a seller’s market is when the demand for homes exceeds the supply, or more simply put, when there are more people looking to purchase homes than there are homes available. When this happens, home sellers usually have the upper hand.

A lack of housing inventory or supply often leads to higher home prices and a more competitive landscape. Since demand is high, sellers will often have multiple buyers interested in their property and as a result, buyers will usually have less room for negotiation. We’ve been seeing a solid sellers market in Denver for the last 5 years straight, so when a buyers market comes up – take advantage of it. 

Homes in a seller’s market tend to sell quickly, at or above asking price, and with less pushback from buyers. As a buyer, you’ll need to act fast, bid higher, and do more to win over sellers. Don’t worry, we’ll cover this in more detail below. (Via Jovio)

Buy and Hold

In the stock market world, investors are able to day trade or buy and sell whenever they like which can make investors a lot of return on their investment. “Don’t wait to buy real estate, buy real estate and wait” – T.Harv Eker is a great quote to describe what to do once you’ve purchased an investment property. Overall, the best way to maximize your real estate investment is to hold on to your asset as long as possible. If you’re going into real estate with the idea that you can quickly get rich in a year, you’re not going to make it. Buy and hold, period.

Interest Rates
In this current economic situation, we’re also seeing record low interest rates which is also pushing the Denver market to become a Sellers Market with the average interest rate in Denver being 2.9%.

As one of the Best Property Managers in Denver, we are always watching the Real Estate market and how it pertains to rentals and investments. We are her to help you buy or sell, or act as a resource for any of your questions when it comes to owning a rental property, investing in real estate or selling your investment property. It’s good to always do your research and speak with a professional when you aren’t sure what to do when it comes to investments.

Check out some Ways to Increase Cash Flow on our blog!