Real estate continues to be the best investment in 2019
Despite what you may have heard or read, Denver real estate continues to be the best investment opportunity available in 2019, and is still the easiest way to generate wealth. We recently came across this article from the Denver Post which gives the impression of the alternative point of view. Upon reading, we thought it necessary to explain that while these statistics are accurate, they do not present the entire context, nor do they demonstrate the positive aspects of the Denver market lifecycle that we are experiencing.
Here's what you've heard:
"home prices nationally in January marked their slowest annual gains since 2015
"Nationally, home prices rose 4.3 percent in January of 2019, marking the 10th month that prices have de-accelerated
"The metro Denver index recorded a 5% annual gain in home prices, the slowest pace since June 2012
Are these statistics true?
But, here's what you need to know:
real estate continues to be the best investment in 2019
It is absolutely true that the Denver appreciation has slowed.It is absolutey true that the Denver appreciation rate was just 5% over the last year.But, It is also absolutely true that a 5% appreciation is still very healthy gains, and is still the best investment opportunity available. The 5% appreciation rate also shows signs that the Denver market is more or less returning to a good place.
Think of it this way:
If a year ago you had purchased a $500k house with a 5% downpayment ($25,000), then you would have currently accumulated $25,000 in wealth! (100% ROI)If you would have invested that same 5% ($25,000) in the stock market, then you would have currently accumulated $2,415 in wealth. (9.66% ROI) - based on averages.
For those of you that paid rent over the last year, what did you earn on those dollars spent?
Here's a deeper dive into understanding the benefits of buying vs renting in Denver specifically in 2019.Follow us on instagram and facebook: @redThomes