Hello! Shane Severson here to talk about the final real estate numbers for December 2019 and where I am advising my friends and clients to concentrate their hard-earned money. So, here is how the stats came in:
- Average Sold Price: $515,115
- UP 3.1% from this time last year
- Months of Supply: 1.8 – This actually is a hair lower than June!
- Days on Market: 34
I get asked EVERY day if Denver is in a ‘bubble’ and my answer is absolutely not! Now is an excellent time to take the leap and buy. We have steady appreciation and most importantly, rates are historically low.
For those looking to sell, NOW is the time to give me a call to start getting your house ready to put on the market. Little fixes like patching and painting and de-cluttering can get you thousands of dollars.
The main topic I want to focus on today is how your money can work for you invested in real estate versus the stock market.
Expert economists agree real estate is one of the safest, fastest places you can park your money and watch it grow. Why? Because real estate has multi-faceted ways it returns on your investment (ROI) which launches your investment far beyond other ways of investing.
I am going to compare $200,000 invested in the S&P 500 versus a single-family residence here in Denver.
Historically, the S&P 500 has a long term appreciation of 10%. Last year, it gained 15%, so if you put $200,000 in securities, at the end of the year, you would have made $30,000. Not bad, right?
Now, let’s take a look at how a $200,000 single-family home rental did:
A purchase of $201,000 with 25% down making $1800 in rent a month had a 37.6% ROI which came out to $20,536 for the year. How is this possible? Remember, the only money that got tied up was the 25% down payment. Real Estate investors take advantage of benefitting from the large number invested for a fraction of the actual money that gets tied up.
Real estate investing is a huge way to build long term wealth and I am looking forward to consulting with each and every one of you to customize a plan that fits your individual needs.
Thanks and God Bless,