Rock Solid Income & Wealth

Rock Solid Income & Wealth

AHB Presents:

ROCK SOLID INCOME & WEALTH

The Denver area residential market is the envy of the nation.  Home ownership in our own back yard has proven to be the superior investment for almost all economic/ location demographics.

Our metro has rebounded from the ‘07, 08’ subprime bubble burst earlier, stronger and with far more staying power than all of our western neighbors, our residential and investment competitors, for the home markets which I (AHB) specialize in. It’s still pretty much a seller’s market, but as we scale up the price line, equilibrium sets in and the buy/ sell negotiable advantage flattens out.  As values increase and borrowing rates remain super low[1] the buy side of real estate becomes more and more attractive.  Couple the excellent pure market dynamics with the steady in/migration of high income wage earners and this “home” market we all covet transforms to the “investment” market we dream about.

Why do we put most or all of our eggs in financial baskets- stocks, bonds, mutual funds

When the house, duplex, condo or small apartment complex a mile away significantly outperforms and generates curved tax favored income? I think it’s inertia and a perceived hassle factor.  Here’s what I mean.  Even if we don’t have a clue about- or, confidence in Wall Street, we empty our pockets because a “financial consultant” guides us his or her way.  Surely, market instruments deserve a major place for your 401 (K), IRA, college plan, growth, emergency and savings plans.  But not all/ not when far better income, capital appreciation and tax shelter offers itself right down the street.  Inertia and hassle factor??  Let’s unpack these real and imagined roadblocks.  First, I will address some built-in resistance. The gigantic sales and marketing machine the Wall Street has exploited (with the government’s blessing) has convinced us that repackaging “has beens” into shiny new schemes[2] is better for your security/ retirement/ income dollars than your local rental property; residential or commercial.  Wrong.  Simply put, when times are good- rents and values increase; tenants are higher quality. When times are bad, families still need a home and enterprises still need warehouse and office space.  Sure, cash flows and appreciation stagnates, but the real property owners who safely leverage always prosper from the down times and overachieve all competitive strategies in the upmarkets.  What about the bother/ management factor?? This mirage is, by far the #1 impediment for most of us.  It’s just too much trouble- I’m too busy, etc. etc…. Well, wrong again.  For example, my team will turn-key[3] your investment property from idea thru acquisition, upgrades, tenant screening (and placement), mortgage financing, property management, relist, resell.  EVERYTHING; even your tax planning guidance for your cpa- titling and insurance protection for your lawyer.  Your job? As simple as completing the AHB client data form.  You can simply click to take you to www.aimeesells5280.com to fill out a client data form.  All information is secure and private.

Ok, so we’ve settled the inertia and hassle factors. Before signing off, let’s eat the desert- higher income, superior tax benefits, capital appreciation with the added entertainment value of drive by pride of ownership.  Match that xyz stock portfolio.

If you’re excited about 10%+ income returns/ yields in a 4% world with long term capital appreciation averaging another 6%+ per year, at half the normal tax rate- it’s time to take a closer look.  Contact me at 720-380-3589 or aimee@mynewera.com and we will discuss your goals and dreams.

Thank you for reading this week’s blog.  Please check back next week for AHB Presents: Your Second and Vacation Home.  

Aimee Bouc


[1] Federal Chairwoman Janet Yellen is abundantly clear.  Interest rates will rise immediately upon economic “stability”.  Point?  Borrowing rates drive leverage- the good kind.  Act soon.

[2] Think no farther than the mortgage “securitization” which drove our residential real estate meltdown.

[3] AHB’s professional network is one stop shopping for the client.  We handle everything.  Including contracting you with your preferred property manager.  

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