One of the most important decisions that consumers face today is whether to buy or to rent. So for starters, take a look at what has transpired since the housing crisis of 2008. Home prices are starting to rebound from their lows and prices have risen 2.3% from last year, but rents have been rising even faster at 4.7%.Secondly, mortgage rates are at an all time low and have been as low as 3.5%. Therefore when looking at rents and home prices in the summer of 2012, if you plan to stay in your home for 7 years(the average occupany period) you can save $771.00 per month by purchasing your home rather than renting.
Trulia has done a comparison of the 100 largest metro areas in the country and then broken down the costs of owning and compared that to renting the same property. With a 20% down payment and with a mortgage rate of 3.5% and, assuming the Owner prepares his tax return by itemizing his deductions, there is a huge difference in the two choices. One caveat here is that every market has different values so the city comparison is not always the same. in cities such as NY, Los Angeles. San Diego the difference in buying is anywhere from 24% to 31%, but take some other cities like Detroit, Toledo, Memphis the benefits of buying over renting can be 60% to 70%. However, even though the percentage is different, the annual dollar savings are bigger because the absolute rents and home prices are so much higher. Always remember that itemizing your deductions lets you subtract your mortgage payments and your property taxes from your pre-tax income, which lowers your tax burden by owning.
These are all true facts that can be proven when looking for your home, so please call and let me help you find the right opportunity before you make an decisions.
Fall is here and the bright colors of yellow and orange are making it's appearance around the Vail Valley. We even had our first dusting of snow on top of Vail Mountain on Monday, which means excitement for the upcoming ski season.
Plan a scenic drive this weekend to enjoy the fall colors as they will probably be peaking this weekend. Here are some scenic drives you may want consider:
Battle Mountain and Tennessee Pass: Take I 70 to Highway 24 through Minturn and head south along the scenic byway. I have always thought this is one of the prettiest drives to enjoy the brilliant shades of gold and orange with a splash of red.
Upper Red Sandstone Road: located on the north side of I 70 in Vail, Red Sandstone Road will take you all the way to Piney River Ranch for some of the most spectacular views of the mountains, the pristine Piney River and beautiful forest. You may even catch a glimpse of wildlife including a moose, elk or deer. The road is bumpy and slow due to the heavy traffic of cars and mountain bikers but it's definitely worth the trip.
Vail Mountain and East Vail: Along I 70 offer beautiful groves of aspens and panoramic mountain views.
Beaver Creek Village: Enjoy lunch on the patio of one of the great restaurants in Beaver Creek. Beaver Creek has some beautiful groves of aspens along the golf course and on the mountain.
Eagle: drive down Brush Creek Road, south of Eagle towards Sylvan Lake State Park. It is full of colorful hillsides of aspens. A great place to take a picnic lunch and enjoy the scenery.
Beaver Lake Estates is located 7 miles south of Leadville, Colorado off of Highway 24. Leadville is a hidden gem in the middle of the Rocky Mountains of Colorado with an easy drive to Denver and Colorado Springs. Leadville is a former silver mining town that lies near the headwaters of the Arkansas River offering numerous opportunites for outdoor recreation such as rafting, fishing, camping and skiing. The closest ski area is Ski Cooper which is about 10 miles from town but Vail, Beaver Creek and Copper Mountain are a short 45 minute scenic drive.
This beautiful 2 acre lot is located at the top of Beaver Lake Estates. Perfect for building a weekend cabin or a home for full time resident. The lot is heavily treed with old pines and lots of aspens.
Beaver Lake Estates is accessible year round. The development consists of 190 lots with about 40 full time residents. The amenties include 3 cabins, which are available for rent for homeowners guests, a private lodge, RV hookups with campsites, 2 private fishing lakes and a horse corral for short term use.
Beaver Lake Estates is surrounded by National Forest which offers unlimited outdoor activites. If you are looking for a lot with privacy and seclusion, this is the lot for you! Offered for $58,900.
In a recent article in the Wall Street Journal, the good news is that the downward spiral in real estate prices is bottoming out, and mortgage rates are at an all time low. Now that makes it a great opportunity to purchase 'bargain basement' prices on homes across the country. The bad news is for Sellers who want to sell before they buy something new.So now you need a checklist to understand where you can go in this interesting time in our economy.
In Vail, the great Recession left many new projects, such as the many developments of the Billion Dollar Renewal with a lot of unsold inventory. Today, however, we are finally seeing an uptick in high dollar property sales. The Ritz Carlton has had 38 closings this summer out of their 71 whole ownership units. The Four Seasons reports that 25 percent of the fractional ownership units have sold this summer, mainly fueled by the 20% drop in prices. As a comparison to the frantic market before 2007, here is a list of sales in that five year stretch: 2007 – 591 units @ $833M, 2008 – 375 units @ $633M, 2009 – 146 units @ $199M, 2010 – 337 units @ $419M, 2011 – 368 units @ $409M.
The key to returning to a healthy market is the change in Buyer objectives, as the old theory of buying and flipping is no longer a reality. Today's buyers are looking for long term appreciation, which stabiliizes the market.
We here at Gateway are experts in finding those excellent opportunities and let me know how I can find one for you. Judd Babcock