Colorado Real Estate News

Is Real Estate a Better Investment than Stocks or Gold?

Kentwood - Colorado's Luxury Real Estate

Real estate brokers are often asked whether a particular home they’re contemplating “will be a good investment.” There are buyers concerned with finding the perfect nesting spot, and others worry whether they’ll come out financially ahead.

Some investors look strictly to commercial real estate, but for this analysis we’re talking about residential homes a buyer intends to reside in.

Much of the calculation depends on various factors, including how long the homeowners will keep the property, whether it’s compromised by a busy road, whether the homeowners plan to keep it in tip-top shape or upgrade, and whether it’s a single-family home or a condominium.


Survey Says

Recently in a post on the Liberty Street Economics blog, the Federal Reserve Bank of New York noted that Americans believe buying a home is definitely or probably a better investment than buying stocks. A subsequent Gallup Poll reaffirmed those findings.

In an article on the current real estate market, Gallup reports:

“Gallup usually finds that Americans regard real estate as the best long-term investment among several options — seeing it as superior to stocks, gold, savings accounts and bonds. This year, 41% choose real estate as the best investment, up from 35% a year ago, with stocks a distant second.”

Here’s the breakdown:

Long Term Investments for America
.

Is Real Estate Really a Sound Investment?

Americans have great confidence in real estate as a good long-term investment and view their home as a way to build future wealth. Although there is some underlying anxiety that the build-up in home values may be mirroring what happened just prior to the 2008-11 housing crash. According to Merrill Lynch, J.P. Morgan, Morgan Stanley, and Goldman Sachs, the current real estate market is strong and sustainable.

As Morgan Stanley explained to their clients in a recent podcast:

“Unlike 15 years ago, the euphoria in today’s home prices comes down to the simple logic of supply and demand. And we at Morgan Stanley conclude that this time the sector is on a sustainably, sturdy foundation. This robust demand and highly challenged supply, along with tight mortgage lending standards, may continue to bode well for home prices. Higher interest rates and post-pandemic moves could likely slow the pace of appreciation, but the upward trajectory remains very much on course.”


Key Takeaways

America’s belief in the long-term investment value of homeownership has been, is, and will always be, very strong. Home prices have been stable or rising the propensity of time over decades, even through other sector downturns. It’s good to diversify your investments, but don’t discount the long-term value of owning real estate.

Find a Kentwood Real Estate Broker, or your next Colorado home, on our website, www.kentwood.com. We service the Front Range of Colorado from south metro Denver, throughout Denver metro, Evergreen, Boulder, and northern Colorado, including Loveland and Fort Collins.

Colorado Sunflowers
Yellow sunflowers over Colorado’s mountains.

Colorado Real Estate News

Top 3 Ways to Protect Yourself from Fraud

Written by Gretchen Rosenberg, President and CEO of Kentwood Real Estate

There is a cyber-crime epidemic happening and it’s hitting real estate transactions particularly hard. According to FinCen, the U.S. Financial Crimes Enforcement Network, “Drug traffickers, corrupt officials, money launderers, and other criminals seek to exploit real estate transactions to hide their illicit profits, conceal their identities, and launder funds.”

Consumers are at risk by virtue of being involved in a real estate transaction and must be highly vigilant to avoid becoming the next statistic. About 40% of all wire fraud moneys are recovered, which means 60% are not. 60% of those buyers lost their down payment and in some cases the entire purchase price. Sellers lost the sale of their house and had to put it back on the market or wait for the buyers to recover their funds or access other funds. This is amounting to billions of dollars lost to criminals.

How can you protect yourself? 

  1. Do not click on links or attachments. At Kentwood Real Estate we have a mantra – No Links, No Attachments! What we mean is to maintain heightened awareness whenever we receive an email with a link or attachment we aren’t expecting. We know that cyber-criminals send phishing attempts constantly and use social engineering to make us think something is important or urgent. We don’t click the FedEx link, the phone company attachment, or title company email until we systematically verify the email is legitimate.
  2. SAIL your email. Vet any suspicious email through the acronym SAIL. Sender. Attachments. Information. Links. Do you know the sender? Were you expecting this email from them? Were you expecting an email with an attachment? Does the information in the email make sense? Are there spelling or grammatical errors? Did you hover over links to see the underlying URL? Same for the email account it was sent from? Is the domain in the URL misspelled or does it substitute a number for a letter, etc?
  3. Don’t fall for fake branding. It’s easy enough to copy and paste a company’s branding, or even someone’s email signature, into a phony phishing email. The criminals know how to appear compelling by attempting to use “social proof.” An email signature or company logo is not proof. Pick up the phone and call your broker or lender and ask if the information you received is information they intended to send you. NEVER accept wiring instructions via email that hasn’t arrived on an escrow or title company secured platform or isn’t encrypted. And ALWAYS call to confirm the wiring instructions before initiating a wire with your bank.

Together, we will overcome cyber-crime.

The best way to avoid becoming a statistic is to ask questions, pay close attention to your email, and slow down. We would much rather see you close, move into your home, and avoid the pain of being a victim. Our Kentwood Brokers, residential and commercial, stand ready to assist. We look forward to helping you take the next steps in your life’s journey!