news update for investors and all area homeowners...from DenverPost.com
The Denver City Council late Monday passed a measure to allow short-term rentals in private residences, after two years of discussion and community input on the issue.
The measure gives owners the ability to rent out a primary
residence for less than 30 days. The new rules, which take effect July 1, will let owners rent out individual rooms or garage apartments on quiet residential blocks to people to use while traveling. Also, the homes can be rented out when the owner is away.
The council approved the measure 9-2, with Kevin Flynn and Rafael Espinoza voting against it. Council members Debbie Ortega and Robin Kniech were absent from the meeting.
The council also considered expanding the proposal to allow short-term rentals in second homes and investment properties. Despite growth in recent years, the new restrictions on the estimated 2,000 Denver listings that fit that model on websites such as Airbnb and VRBO would significantly cut that number, said those who oppose restrictions on the rentals.
The expanded piece was not included in the ordinance that passed Monday.
“Denver is undergoing dramatic and sometimes traumatic change,” said City Councilwoman Kendra Black. “I think we need to ease into this and see how it goes.”
More than 60 people signed up to speak on the issue during a public hearing. Predictably, those who support expanded short-term rentals were mainly people who already have them and didn’t want them limited to primary residences. Those who opposed were from established neighborhoods, but they said the restrictions would be better than nothing.
Sherri Way of the West Washington Park said a short-term rental “undercuts the fabric” of the neighborhood. The renters don’t send their kids to area schools and don’t help the elderly, she said. But if the city does move a measure forward, she favors the primary-residence provision.
But Brenda Beard said expanded short-term rentals are good for the economy. “We need to encourage tourism in our city,” she said.
Other cities, including Aurora, are also considering measures to regulate short-term rentals.
Saturday, June 25, 2016
Got Cold Feet About Home Buying? Here’s How to Cope
some good advice to think about with realtor.com
Buying a home is a lot like getting married: Your stomach’s all butterflies as you make the offer; then you’re over the moon once it’s accepted. Only then, as you take those slow, winding steps toward the big day (aka closing), completely different butterflies may settle in the pit of your gut: Holy crap, this is a huge commitment. Did I make the right choice?
Chillax: Suffering a case of cold feet over an impending home purchase is remarkably commonplace. And it doesn’t necessarily mean there’s anything wrong, or that you shouldn’t follow through. Odds are, your mind is just reeling with a lot of “what-ifs” that can feel downright paralyzing.
Here’s how to silence those ceaseless questions so you can make this commitment with confidence.
‘What if I can’t afford my monthly payments?’
This is a concern for just about everyone—but especially among people who are buying at the top of their budget, says Sarah Jones, CEO and co-owner of Texas-based Bamboo Realty. If you’re worried about the costs of homeownership, sit down with your loan officer or a financial adviser (find one at NAPFA.org) and review the numbers.
You’ll want to calculate the total cost of owning the home—not just your mortgage payments but also taxes, utilities, homeowners insurance, and any HOA or condominium dues. Then compare that amount to your combined household income.
As a general rule of thumb, your housing costs should be no more than 28% of your gross income. But don’t panic if your ratio is a tad higher; your financial planner may be able to help you create a monthly budget that works for you.
‘What if I overpaid?’
First, consider how much competition you had from other buyers. If you were in a multiple-offer situation, you likely had to bid at, or above, listing price to nab the property.
When Jones’ buyer clients fear that they’ve overpaid, she shows them the comparable properties (which they also reviewed before making the offer). “Very rarely do I tell a client to make an offer substantially higher than what the [comparative market analysis] showed,” she says.
Moreover, if you need a home mortgage to purchase the property, your offer automatically includes an appraisal contingency. This contingency is required by your lender and involves a third-party appraiser assessing the value of the property. If the appraisal comes in lower than the purchase price, your lender will approve a loan only up to the lower amount—leaving you to decide whether you want to cover the remaining costs out of pocket or walk away from the deal.
‘What if a better property comes on the market?’
Many people experience this second-guessing when shopping during the spring home-buying season, a period when there’s more inventory on the market, says Judy Weiniger, broker associate and CEO at Weiniger Group in Warren, NJ.
It’s a valid concern, especially if you viewed only a few properties before you submitted an offer on the home. However, when Jones encounters this, she helps her clients put things into perspective.
“If they’re like most buyers, I remind them that they already looked at hundreds of homes online before they fell in love with the one that they found,” Jones says. “Buyers don’t credit themselves for the legwork they did upfront.”
Still afraid you’re going to miss out on your dream home? “Ask yourself how happy you are with the home that you’re buying on a scale of 1 to 10,” says Jones. “If it’s an 8 or higher, you’re making a good purchase. You can look for a year and never find a 10.”
‘What if home prices tank after I buy?’
This is a valid concern, given how fresh the housing crisis of 2008 still feels. And, granted, “we never know what tomorrow will bring,” Weiniger concedes. However, this is typically only an issue if you plan to own the home for one to two years, since the housing market may not have bounced back by the time you sell. But if you plan to own the property for at least five years, you’ll likely live there long enough to regain any equity that you may have lost after purchasing the home.
‘What if I underestimated how much work this house needs?’
You may have uncovered more issues during the home inspection than you predicted, particularly if you’re buying a fixer-upper. Still, that doesn’t mean you have to tackle all repairs at once. Instead, use your home inspection report to assess what areas of the house require immediate attention (and money) and what areas qualify as remodeling projects. Then, consider whether you’re up to the challenge. And bear in mind: You don’t need to tackle everything at once.
“I tell buyers take it one room at a time,” says Jones, who recommends starting with a small project (e.g., painting the master bathroom) to gain confidence and then work your way up to bigger renovations (e.g., remodeling the kitchen).
Buying a home is a lot like getting married: Your stomach’s all butterflies as you make the offer; then you’re over the moon once it’s accepted. Only then, as you take those slow, winding steps toward the big day (aka closing), completely different butterflies may settle in the pit of your gut: Holy crap, this is a huge commitment. Did I make the right choice?
Chillax: Suffering a case of cold feet over an impending home purchase is remarkably commonplace. And it doesn’t necessarily mean there’s anything wrong, or that you shouldn’t follow through. Odds are, your mind is just reeling with a lot of “what-ifs” that can feel downright paralyzing.
Here’s how to silence those ceaseless questions so you can make this commitment with confidence.
‘What if I can’t afford my monthly payments?’
This is a concern for just about everyone—but especially among people who are buying at the top of their budget, says Sarah Jones, CEO and co-owner of Texas-based Bamboo Realty. If you’re worried about the costs of homeownership, sit down with your loan officer or a financial adviser (find one at NAPFA.org) and review the numbers.
You’ll want to calculate the total cost of owning the home—not just your mortgage payments but also taxes, utilities, homeowners insurance, and any HOA or condominium dues. Then compare that amount to your combined household income.
As a general rule of thumb, your housing costs should be no more than 28% of your gross income. But don’t panic if your ratio is a tad higher; your financial planner may be able to help you create a monthly budget that works for you.
‘What if I overpaid?’
First, consider how much competition you had from other buyers. If you were in a multiple-offer situation, you likely had to bid at, or above, listing price to nab the property.
When Jones’ buyer clients fear that they’ve overpaid, she shows them the comparable properties (which they also reviewed before making the offer). “Very rarely do I tell a client to make an offer substantially higher than what the [comparative market analysis] showed,” she says.
Moreover, if you need a home mortgage to purchase the property, your offer automatically includes an appraisal contingency. This contingency is required by your lender and involves a third-party appraiser assessing the value of the property. If the appraisal comes in lower than the purchase price, your lender will approve a loan only up to the lower amount—leaving you to decide whether you want to cover the remaining costs out of pocket or walk away from the deal.
‘What if a better property comes on the market?’
Many people experience this second-guessing when shopping during the spring home-buying season, a period when there’s more inventory on the market, says Judy Weiniger, broker associate and CEO at Weiniger Group in Warren, NJ.
It’s a valid concern, especially if you viewed only a few properties before you submitted an offer on the home. However, when Jones encounters this, she helps her clients put things into perspective.
“If they’re like most buyers, I remind them that they already looked at hundreds of homes online before they fell in love with the one that they found,” Jones says. “Buyers don’t credit themselves for the legwork they did upfront.”
Still afraid you’re going to miss out on your dream home? “Ask yourself how happy you are with the home that you’re buying on a scale of 1 to 10,” says Jones. “If it’s an 8 or higher, you’re making a good purchase. You can look for a year and never find a 10.”
‘What if home prices tank after I buy?’
This is a valid concern, given how fresh the housing crisis of 2008 still feels. And, granted, “we never know what tomorrow will bring,” Weiniger concedes. However, this is typically only an issue if you plan to own the home for one to two years, since the housing market may not have bounced back by the time you sell. But if you plan to own the property for at least five years, you’ll likely live there long enough to regain any equity that you may have lost after purchasing the home.
‘What if I underestimated how much work this house needs?’
You may have uncovered more issues during the home inspection than you predicted, particularly if you’re buying a fixer-upper. Still, that doesn’t mean you have to tackle all repairs at once. Instead, use your home inspection report to assess what areas of the house require immediate attention (and money) and what areas qualify as remodeling projects. Then, consider whether you’re up to the challenge. And bear in mind: You don’t need to tackle everything at once.
“I tell buyers take it one room at a time,” says Jones, who recommends starting with a small project (e.g., painting the master bathroom) to gain confidence and then work your way up to bigger renovations (e.g., remodeling the kitchen).
Denver home values up nearly 50% since Great Recession, biggest gain in nation
interesting read from Denver Business Journal...
Home values in Denver have increased 49.3 percent since their Great Recession peaks 10 years ago, which is the
biggest gain in the country.
According to mortgage resource company HSH.com's " home price recovery index," home value growth in Denver-Aurora-Lakewood market outpaced all other U.S. markets since 2006.
The index "uses the Federal Housing Finance Agency's (FHFA) Home Price Index as a basis to determine which housing markets have fully recovered (or more) and which still lag behind the housing recovery."
The Denver-area home appreciation growth over the past 10 years eclipsed the growth from other top markets, including Nos. 2-4, which were all in Texas (Austin, Houston and Dallas).
The government's Home Price Index tracks home appreciation using 1990 as a starting year, with all markets given a value of 100 in that year.
Since 1990, the Denver market's Home Price Index has risen to 413.86, well above the 2006 level 277.21.
Compared with Denver, other Colorado cities didn't fare so well. Colorado Springs' home value growth since the Great Recession peaks is less than 10 percent.
In metro Denver, it was reported that average home prices increased by 10 percent in April from a year earlier.
Home values in Denver have increased 49.3 percent since their Great Recession peaks 10 years ago, which is the
biggest gain in the country.
According to mortgage resource company HSH.com's " home price recovery index," home value growth in Denver-Aurora-Lakewood market outpaced all other U.S. markets since 2006.
The index "uses the Federal Housing Finance Agency's (FHFA) Home Price Index as a basis to determine which housing markets have fully recovered (or more) and which still lag behind the housing recovery."
The Denver-area home appreciation growth over the past 10 years eclipsed the growth from other top markets, including Nos. 2-4, which were all in Texas (Austin, Houston and Dallas).
The government's Home Price Index tracks home appreciation using 1990 as a starting year, with all markets given a value of 100 in that year.
Since 1990, the Denver market's Home Price Index has risen to 413.86, well above the 2006 level 277.21.
Compared with Denver, other Colorado cities didn't fare so well. Colorado Springs' home value growth since the Great Recession peaks is less than 10 percent.
In metro Denver, it was reported that average home prices increased by 10 percent in April from a year earlier.
What is the lowest point in Colorado?
What is the lowest point in Colorado?
Lowest Point:
Arikaree River at Kansas border ; 3317 feet, 50th lowest.
Lowest Point:
Arikaree River at Kansas border ; 3317 feet, 50th lowest.
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