Monday, November 5, 2012

When is the Time Right for Investing in a Business or Home

The human being is a beautiful and successful thing.  We have evolved as humans through the millenia to a place where we are today running businesses and families and owning things, managing our assets and potential retirement scenarios, our estates, and ... well, here we are.

But the fact is, we're still wired for survival.  And one of those wires tells us that when times are really scary, we hold tight.  We hide.  We hoard.  We make it through the touch times by doing nothing but watch.

Ira Nottonson for the Daily Camera has written a very nice, very short piece about whether or not, in these difficult times, one ought to invest by borrowing money for a business or to buy a home.  His conclusion is simple.

You don't have to.  But as you do nothing, others are investing, and as your competitors, are going to pass you by and take your customers or your potential home.  Slow times are no excuse for not competing or getting ahead.

The real estate market right now is full of people buying homes and apartment buildings for investment.  Their right choices and actions during these opportune times will not guarantee their happy retirements.  But they're out there investing in great numbers, and they're making a lot of money in the process.

Our market can accurately be described as the selling prices being as low as they've been this decade, with rents on the rise, and interest rates at historic lows.  If you won't make the decision to invest today, you ought never invest in real estate in the future.  I can't imagine a better scenario than now. 

Read the piece.  He's a good writer with a good position.  Thank you, Ira.

By the way, Ira's right about something else.  As long as you're awake and taking control of your life, get out and vote.  Don't let those other people speak for you when you have something to say.

Call me as you need.  I'm always here for you.

Enjoy the day,
Mike Moger  

Friday, November 2, 2012

The Real Estate Market is Perfectly Balanced (Almost)

For years and years, a simple truth has ruled the world of negotiating between Buyers and Sellers in the home-buying and -selling market.  It involves a very little bit of arithmetic.

Take all the homes that are available on the market at this time (We call it the existing Inventory), and divide that number by the average number of homes that sold in that marketplace over the past couple or few short months (We call it the Absorption Rate).  Your answer will be the number of months of Inventory on the market.

That number is critical in any description of the marketplace, because the simple truth I mentioned is that, statistically, six months of Inventory is perfect.  When we have between five and seven months of Inventory on the market, neither the Buyers nor the Sellers have an advantage.  If the Buyer writes an offer that's not acceptable to the Seller, the Seller knows that she can wait it out, because another Buyer is around the corner.  If the Seller chooses not to accept the Buyer's offer, the Buyer is fine with moving along to another home.  He knows that another Seller might be more reasonable.

And the world of real estate sales moves ahead as it has for generations.

In the United States over the past four years, we have fretted over the real estate market.  We've all known that, as the real estate market comes back, the economy will more likely follow.  Until the home markets improve, we're stuck.

So OK, we're not stuck anymore.  Beginning about the end of July of this year, we've been seeing just a hair above six months of Inventory in the US market.  That's down from 9.3 months just a year prior, when being a Buyer was a very happy time.

As is true always, one number moves, and many others follow.  The time to sell a home has come down considerably, and home values are now on the rise. 

As I wrote above, there are truths in the marketplace.  Right now, if you actually look at the numbers, the overall US housing market is doing fine.

For more info, read the accompanying article in the Daily Camera.

In short, it's actually a very good time to make a move. 

Call me when you have a moment.

Enjoy the day,
Mike Moger

Thursday, November 1, 2012

An Italian Prince Owned my Home

How many people have told you that an Italian prince used to own their homes?  Wildshot guess -- nobody?

Here's an opportunity to own a 34-acre site just 30 minutes outside of Denver, CO that was originally owned by an Italian prince and his new wife, a Denver socialite.  Since 1989, it's been a successful Bed and Breakfast property.

With the addition of a 2000 square foot glass post and beam building, it became a perfect event center for weddings, reunions, and corporate retreats.  The poured concrete floors are heated, and two beautiful bathrooms and a prep kitchen make it an all day event out of the weather.

 The owners are looking to sell now, and honestly, I'm not convinced that the current use is absolutely its best use.  When I look at the big picture, this is a fantastic single family home.  Very unique, yes, but a great home all the same.

That event center building is a wonderful made-to-be-used-everyday place to work out.  You can invite a few dozen of your closest friends over every morning for your early yoga asanas. 
The lodge itself is perfect as a six-bedroom, six-bath log and stone home.  Another cabin, complete with its own bath, fireplace and hottub, rests quietly up the hill in the meadow.  I can see my visiting inlaws up there now.  There's another two-bedroom cabin on the property as well.

Truly, this home is beautiful.  Quiet, secluded, both wooded in the forest and sunny in the meadow, with great paved access and just a short drive into Denver from the Conifer area, this could be your private home. 

Take a look at the video for yourself. 


Of course, if you're looking for an inn and event center, you can become the innkeeper at Meadow Creek Lodge and Event Center.

Call me when you find a moment. 

Enjoy the day,

Mike Moger