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The Outlook for the Denver Real Estate Market In 2017

The Outlook for the Denver Real Estate Market In 2017

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Do you love following how different real estate markets in the country are performing? If yes, then I am sure you know that Denver is among the top 10 places in the country where the real estate market has stabilized the most. This means that for those planning to invest in Centennial real estate and other suburbs such as Littleton, Denver-Aurora-Lakewood, Highlands Ranch and Denver metros, this is the right time to do so because homes are gaining value year after year.

If you look at the Denver real estate market in 2015, the highest number of returns was recorded that year, making the place the country’s leading real estate market. The market is doing tremendously well in 2016 and the trend is expected to continue throughout 2017. However, the growth is expected to increase at a decreasing pace in the future because prices are believed to have reached the peak in Metro Denver. Nevertheless, Centennial real estate and other neighboring areas are expected to keep on growing in the coming years. For those planning to invest in Denver real estate, the following are the major things to expect in 2017.

  1. Property buyers should prepare for tough times on appraisal requirements

Real estate investors in Denver should prepare for tough times due to licensing requirements that have significantly changed for appraisers. Investors should be prepared for a shortage of appraisers in 2017 and this will delay the time taken to close real estate deals. Additionally, homebuyers in the region will be required to schedule for appraisals before properties are inspected which could be inconveniencing and expensive because homebuyers will have to pay for appraisals on deals that might not proceed. However, the situation will change later in the year and there will be a healthy and balanced market.

  1. Fewer inventories in the market

Those planning to buy real estate properties in Denver should not expect the market to be flooded with inventory. Just like in 2015 and the half of 2016, the supply of homes is expected to be less than the demand, especially in the city’s luxury market and older neighborhoods. Consequently, demand for homes will be very high in the tight areas of Denver any anything below $1million will be selling like hot cakes. Homebuyers who want more choices in the coming year should consider buying in the Suburbs of Denver. Highly developed areas are expected to remain a seller’s market in 2017.

  1. Strict construction rules for builders

Home builders and constructors should expect strict construction defect laws from 2017 because laws have been established to protect the safety and right of homeowners. More laws are expected in the near future and homebuilders should be prepared for a tough moment. There is a high likelihood that new rules and regulations will discourage the construction of new homes in the area and this will lower inventory levels. The supply of Condos is currently very low in the area and the number is expected to decrease even more in 2017. This is because many municipalities in the area have been left to make their own laws, hence discouraging developers to build more homes.

  1. An increase in interest rates

If you are planning to buy real estate in Denver and its environs, then you should do it now because interest rates are expected to go up. The Federal Reserve has predicted an increase in interest rates in the near future. For instance, it will be expensive to buy a single standard family home in Denver in 2017 if signals given by the Federal Reserve is something to go by. Homebuyers are advised to act now and not to wait until interest rates start shooting up.

  1. High demand for housing and high home prices

According to a report given by Zillow, demand for housing in the area is expected increase in 2017 and this will push home prices upward. Home prices normally go up whenever there is high demand for housing. The population is also expected to keep on growing in the area and this will result in a higher demand for housing. This means that homebuyers will have to compete for limited housing available and sellers will increase the prices so that they can gain more. This makes the area a hot spot for flipping homes because 2017 market is expected to be a seller’s market. Investors buying properties now are going to make more profits if they sell those properties next year.

Steps for Obtaining a Mortgage in Atlanta

Steps for Obtaining a Mortgage in Atlanta

home

The Atlanta real estate market is booming and investors are rushing to acquire properties there before prices become too high to afford. I understand that many people in the area do not have enough money to buy Atlanta investment property and pay cash. However, this should not deter them from acquiring real estate properties in the area because they can now get a mortgage to finance their investment and free up their finances. It is worth noting that the situation has improved and mortgages are now easily available and affordable for those who want to acquire properties in the area.

If you are planning to buy Atlanta investment property and you do not have adequate capital, you can now borrow and pay in small installments. Remember that getting a mortgage in the area is no piece of cake and you need to get yourself a mortgage manager to help you get the best rates and the best lender. The following are the basic steps for obtaining a mortgage in Atlanta.

  1. Know the cost of the property you want to buy

The first thing to do before applying for a mortgage in Atlanta is to know the cost of the property that you want to buy. It is meaningless if you apply for a mortgage that cannot pay for the property you want to buy because you will have to pay back the loan plus interest when you have not acquired any property. It is also unwise to apply for a mortgage when you have not found the property you want to buy because you will end up paying more interest for the mortgage. You need to first identify the property you want to buy and know how much it will cost you.

  1. Know your finances, the deficit and the loan you can comfortably afford

Once you have identified the property you want to buy and its cost, the next step is to confirm your fiancés and see what you need to borrow. It is very important to make sure that you only borrow what you can comfortably pay without struggling. Try to borrow less because the more you borrow, the higher the interest you pay. More so, borrowing more than you can afford can result in a foreclosure where you end up losing your home and money already paid.

  1. Test different mortgage loans

There are different sources where you can get a mortgage loan to finance your property. However, it is worth noting that different lenders in the area have different terms and interest rates. It is, therefore, important to test different mortgage loans with a mortgage rate calculator to identify the one with the lowest rates. It is also advisable to consult other investors in the area in order to identify the most reliable render.

  1. Consider how long you want to keep the property

Here you need to decide whether you are buying a home to keep it forever as your personal home or you want to venture into the business of flipping homes. If you are buying your personal home and you intend to keep it for a long time, then you should consider the lender offering the best long-term fixed rate mortgage. On the other hand, if you are flipping homes, you should consider a lender with the best short-term fixed rate mortgage.

  1. Make sure you understand different loan types and rate rates

One of the biggest mistakes that many people buying properties using borrowed capital make is borrowing without understanding how different types of loans compare in terms of rates. It is worth noting that the fact that a loan as a lower interest rate does not mean it the best for you. You need to compare loans from different lenders and understand all the included terms and hidden charges. Remember that a certain lender could be having a higher interest rate, but with the most friendly terms and conditions and vice versa.

  1. Get yourself a reliable mortgage manager

Many mortgage borrowers in the country believe that hiring a mortgage manager is an unnecessary cost. However, what many people do not know is that a mortgage manager can help you to make the most informed choices when obtaining a mortgage in Atlanta and other parts of the country. The good thing with using a mortgage manager in Atlanta is that you enjoy a personal touch to your transactions and flexible rates.

Once you have followed the above steps and confirmed that everything is in order, you can go on and get the mortgage to pay for the property. Some of the key lenders where you can get a mortgage in Atlanta include the government, banks, and private lenders.

Tips for Flipping Homes

Tips for Flipping Homes

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Flipping homes is a very profitable business that can make you a millionaire within a very short period. However, this type if real estate investment is very risky and if you are not careful you can make huge losses and probably be in debts. We all know that the real estate market in the country is reviving and many people are now willing to venture into the into real estate investment. However, what many real estate investors in the country do not know is that the fact that the real estate market is reviving is not an assurance that every investor will make profits.

It is very important for every investor to out there to make sure he/she understands the market very well before committing his or her money. For those planning to venture into the business of flipping homes, the following are some of the basic tips that can help you succeed in business and maximize your returns. Just remember that it is risky.

1. Research extensively about the market trends

The business of flipping homes involves buying properties cheaply and selling later to make profits. It is, therefore, important to research extensively and understand market trends in the area where you want to flip homes. You need to first identify areas where the market is doing well and know the type homes that are highly demanded. It is also important to know the type of home buyers you are targeting, their financial capabilities and their tastes and preferences.

2. Always negotiate for cheaper prices

The secret in home flipping is buying at a cheaper price and selling at a higher price in order to make profits. It is worth noting that the lower the buying price the more profits you get. You also need to do some renovations on the property before selling and this reduces your expected profits. It is, therefore, important to negotiate the price so that you are can pay the lowest price possible.

3. Take advantage of the deserted properties

If you do not know, deserted properties are normally underpriced and you can get a home that requires minimal renovations at a very low price. However, you need to make sure you have evaluated the cost of renovations and the expected selling price to see if you are going to make a profit or a loss. Sometimes renovations can be very expensive, making it impossible for you to recover your money after selling the home. You need to inquire why the home was deserted and get it inspected afresh before deciding whether to buy it or not and how much to going to offer.

4. Take advantage of foreclosures

These are homes taken from the owners by the lenders after their owners have failed to pay back their loans. In many cases, the owners of these homes had paid a certain percentage of the loan and only a small amount is left. In such situations, you can buy these homes cheaply because lenders are after recovering the unpaid loan amount. Most of these homes are in good condition and you may not be required to do any renovations before reselling at a higher price. However, it is important to make sure the property is located in a strategic location and is likely to earn you more money after reselling.

5. Always buy in properties in growing markets

The business of flipping homes can be very disastrous if you buy homes in a stagnant market or a declining one. It is, therefore, important to study the market trends in the area where you want to flip homes and be certain the market has a steady growth. You also need to make sure there is a high demand for homes in that area.

6. Never overcapitalize on renovations

Be very careful to avoid overcapitalizing on renovations because you need to recover your money after re-selling the home and make profits. As much as want the property to be appealing to possible buyers, the renovations should not exceed your planned budget or else you may end up lowering your profits or even making losses.

7. Do not be over ambitious

Another very important thing to note when flipping homes is to make sure you are not over ambitious. Some home flippers are tempted to keep the properties longer to take advantage of the growing market and make more profits in the future. This is a very bad strategy because you cannot predict how the market will be with 100 percent accuracy. It is advisable to sell the property as soon as you can, get the expect profits and look for another deal.

Further Reading:

Flipping Houses for Profit – Tips for How to Flip a House