I suppose that every aspect of our society has experienced a “correction” through what has now officially been identified as a recession. Certainly, the performance of the stock market leaves one wondering whether there is a bottom in sight. So too, with the housing market, where homeowners in some cities have seen up to 60% of the value of their homes vaporize. Yesterday, I read a report claiming that the present administration had been warned in 2005 of a need to curb aggressive mortgage practices out of concern that they would contribute to an overwhelming national default rate, and, according to the report, that warning went unheeded because of pressure exerted by the major mortgage lenders, most of which, are now defunct. Sheesh!
Is there an upside? You bet! As a card-carrying member of the HFG Society (Half-Full Glass), I know that historic lows in stocks, real estate or emotions are closely followed by positive runs. Ralph Waldo Emerson knew this. He said: “Things refuse to be mismanaged long,” and I believe that we are on the brink of righting our mismanagement.
Closer to home, my colleagues and I who continue to practice our craft as licensed real estate brokers in the state of Colorado just received notice from the Colorado Division of Real Estate that our license fees are being doubled because the number of applications by new licensees has dropped by 60% and another 30% of our existing agents have found better paying work at Starbucks. By no means am I a pollyanna, but this is great news. It means that our industry is purging and the ratio of good, professional agents whose understanding of real estate transactions extend beyond what goes into their pockets is increasing significantly. Perhaps the Colorado Division of Real Estate will find a need to regulate less?
Our pick Denver Investment property for today is again in the city of Arvada. We like Arvada as an investment location for a number of reasons: it’s an established town that is just a 15 minute commute into Denver, shopping, highway access and schools are plentiful and a light rail line is scheduled for construction within a few years. Like many of the historic towns of Colorado, Olde Towne Arvada is receiving a facelift largely due to the efforts of the Arvada Historical Society and the merchants who operate businesses within the ten square block area consisting of restaurants and funky curio shops.
In an area where the price per square foot averages between $130 and $150, our pick investment property appears to be a steal at $70/sq ft. With 2500 square feet of available living space, this 4 bedroom / 2 bathroom tri-level is valued at $250,000, but listed at $174,900. Listing information indicates that some updating has already been completed but that there is additional work to be done to restore the property to livable condition. A recommended offer would be in the $150k range.
Built in 1959, this Arvada home is in the Allendale neighborhood: quiet, yet very close to amenities, and once the light rail line is built, this property will be just blocks away from the station. If you are interested in seeing more information about this real estate investment opportunity, please let us know.
