CASHFLOW IS GREAT - BUT IS NOW A GOOD TIME TO INVEST?Real estate investors know that cashflow is key to the viability of any investment property. There are also many tax benefits to being a landlord, especially for those investors who are looking for deductions. But is it safe to invest?
Appreciation is one of the most important components of long-term real estate investing.
Nationally, home prices have increased 298% since 1980. In Colorado, values have gone up 263% during the same time, according to the OFHEO (Office of Federal Housing Enterprise Oversight).
So what about now, amid all the negative headlines and gloomy articles about the national housing market?
The PMI Group, one of the largest mortgage insurance companies in America, puts together a quarterly analysis of the top 50 markets in the country, ranking them in terms of risk.
The riskiest market in the country today, according to PMI - Riverside, California, with a 95.5% likelihood of decreasing values over the next two years.
PMI breaks these top 50 markets into five segments, with "Level 1" representing the riskiest markets and "Level 5" showing the safest markets. The Denver region is currently in the lowest risk category, with a "less than 1% chance" of decreasing prices over the next two years.
Positive cashflow, rising rents and an occupancy rate of over 97% are incentive enough for most real estate investors to jump into this market. PMI's optimistic outlook for Denver is just an added bonus in making the case for why this is one of the best rental markets in memory.
