Energy Loans for Your Denver Business Offered Through Certifiably Green Denver

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greenlightbulb2

Through Certifiably Green Denver, the City and County of Denver offers low-cost financing for Denver businesses who wish to implement energy-efficient upgrades.  If you’re planning to implement energy projects, but lack the upfront capital, a Sustainability Adviser through Certifiably Green Denver can help you determine if a low-cost energy loan through the program is right for you.  Over 40 measures have been approved with interest rates as low as 3.75%.

Business energy loans can be used for variety of upgrades, including:

-Lighting Upgrades

-Energy Audit ASHRAE Level 2 or 3

-Energy Management

-Heating, Ventilation, and Air Conditioning (HVAC)

-Office Equipment

-Laundry Equipment

-Motors and Drives

-Refrigeration, Food Service, and Grocery

-Walls and Roofing

-Water Heaters

-Renewable Energy (Solar)

To see if this loan is right for your business, contact a sustainability advisor.

Different Types of Mortgages – Which One is Right For You?

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New house buyers concept for mortgage, home loan

FHA Loan – This is a great program for first-time home-buyers, though you do not need to be a first-time buyer to qualify for this loan.  FHA loans usually require a middle credit score of 640 and tends to have more lenient guidelines than most other mortgages.

The Guidelines:

-Bankruptcies must be discharged at least two years ago

-Foreclosures and Short Sales must be at least three years ago

-Debt to income ratios are allowed up to 55%

-3.5% is required for a down payment

-Co-signers are allowed, as well as gift funds for a down-payment

CHFA Loan – This is another great program for first-time home-buyers offered by the Colorado Housing and Finance Authority.  CHFA is a organization that provides down payment assistance for FHA loans.

The Guidelines are the same as FHA Loan Guidelines except:

-Only a .5% down payment is required or a minimum of $1,000 down, whichever is more

-Buyers must complete a Homebuyer Education class that can be done in person or online

VA Loan – This is a great loan program for any veteran with VA loan eligibility.  Similar to FHA loans, this loan has very lenient underwriting guidelines.

The Guidelines are the same as FHA Loan Guidelines except:

-No down payment is required

-No mortgage insurance is required

Conventional Loan – This is the preferred program for any buyer with a higher credit score (at least 650) and can afford at least a 5% down payment.  Ideally, a buyer would need to put 20% down for a conventional loan.  However, buyers can now put as little a 5% down with various options for mortgage insurance.  (Generally, a higher credit score will gain the buyer a lower price on mortgage insurance.)

The Facts:

-Bankruptcies must be discharged at least 4 years ago

-Foreclosures and short sales must be at least 7 years ago

-Debt to income ratios allowed up to 45%

-At least 5% is required for a down payment

-Co-signers are allowed in most cases, as are gift funds

-With a slightly higher credit score and a slightly larger down payment than an FHA loan, a conventional loan ends up being a much cheaper option than an FHA loan

On a final note, buyers be aware that a conventional loan is often required when purchasing a condo.  If you have more in depth questions about which loan is right for you, give us a call or email and we will point you in the direction of a great loan officer!  Also, if funds for your down payment are a problem, look into the Denver Mortgage Assistance Program to see if grant money is still available for home-buyers who qualify for a home, but need assistance with a down payment.

How Will Legal Marijuana Affect the Colorado Real Estate Market?

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Marijuana Questions

Whether you voted to legalize marijuana in the state of Colorado or not, it happened – and the business of legal marijuana is a large enough industry to affect our local real estate market.  This blog is not intended to be political, I simply consider it my job to stay on top of all aspects of real estate and our local economy.  So, how can we expect legal weed to affect our local real estate market?

All in all, marijuana equals more money.  In Colorado, 5 million dollars was generated in sales tax from medical marijuana in 2011.  The state of Washington estimates that legalizing marijuana will create $1.9 billion in additional revenue in the next five years.  The city of Oakland raised $1.3 million in tax revenue in 2011, which accounted for 3% of the city’s total business tax revenue.

Those numbers aren’t bad.

CNN Money quotes Alec Rhodes, managing director at Cassidy Turley Commercial Real Estate Services in Denver, estimates that marijuana growing operations occupy at least 1.5 million square feet of commercial real estate, which contributed to the local economy to get us through the recession.

So, if someone were relocating to a new city, what might they look for?  Strong economy.  Good schools. Colorado governmental regulations seek on the legal marijuana industry seek to provide this.  In fact, the first $40 million of sales and excise taxes on newly legalized recreational marijuana has been earmarked as revenue for public schools.

All in all, it is likely that the legal marijuana industry will positively affect the Colorado housing market over the next ten years; home prices probably wouldn’t skyrocket due to the industry, but the additional reinforcement to our local economy will likely add benefit.  The revenue generated from marijuana will redistribute into other local non-marijuana related businesses.  Folks who work in the legal marijuana industry will need to buy homes, eat dinner at local restaurants, acquire legal counsel, hire employees, and so forth.  With our nation’s economy still not up to full recovery, we can remain optimistic about maintaining our economic strength in the state of Colorado.

How To Choose a Home That is Likely to Increase in Value

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house and money on scales. Isolated 3D image

A lot of people have expressed concerns to me about buying a home in the Denver market, as the rapidly increasing prices have raised concerns about a housing market bubble.  If you would like to learn more about current economic trends affecting the Denver market, click here.  For now, let’s consider some good maxims for buying a home in any city and any market.

Your home is one of your greatest investments.  There is absolutely nothing wrong with buying the home you like, wherever you like, BUT if you prioritize your home increasing its value, consider these following tips:

1)  Seek homes in walkable neighborhoods.  Walkable neighborhoods are becoming a high priority for home-buyers.  With increases in gas prices, people are moving back in from the suburbs and finding that its often more pleasant to walk to work, to the store, and to dinner.  A home in a walkable neighborhood will be more likely to maintain and increase in value.

If you are looking for a home in a new city, check the walk score.  Neighborhoods are rated from 0-100, with 100 meaning that multiple neighborhood businesses and parks will be within a stone’s throw.  The Riverfront neighborhood in Denver boasts some of the higher home prices in Denver and has a walk score of 98.

2)  Look for homes near parks and public transportation.  Homes that are near parks and public transportation are more likely to maintain or increase in value.  Once again, it’s where people want to be.  Location, location, location.

In Denver, an area which will likely increase considerably in value in the future is near the future lightrail extension by 38th and Blake.  If one were to purchase a home in this area now, in 3-10 years after construction is completed, the home value would likely have increased significantly.  Note:  choosing a location based ONLY on projected increases can be risky.  I recommend that you appreciate the location you choose as it is, in case projected improvements to the area never happen.

3)  Stay abreast of new developments that will make a location more desirable.  Glendale is already a desirable neighborhood to many, but when the Riverwalk is completed, homes near this development will likely increase in value because the neighborhood will be even more enjoyable.

4)  Learn a bit about the rental market in your area.   If rents on comparable properties are going for equal to or higher than your mortgage, this is good. If the vacancy rate for rentals in your city is low, this is good.  So, if, in the words of Kurt Vonnegut, the excrement hits the air conditioning and you no longer can afford your mortgage, you could likely cover your mortgage (and maybe even make money) by renting out your home and keep yourself out of foreclosure.  This could also benefit you if you have a job transfer to another city, while your current city is in a down market.  You could cover the mortgage (and maybe even make money) by renting out your property until the market improves so you don’t lose money when you sell your home.

Renting out your home may not be for everyone… Being a landlord contains its share of headaches, but if remaining financially strong is your primary goal, the ability to rent out your home can be a major asset.  Real estate markets aren’t so different from stock markets, and the mistake a lot of people make in stocks is selling when the prices are dropping.  Sometimes this can save you, but most markets will rebound and make their way back up.  Do what you have to do to weather the storm and wait it out.

5)  The home that is generally the best investment is the worst or smallest one on the block.  The home that is generally the worst investment is the biggest and best one on the block.  There can be some wiggle room on this… If , for instance, someone famous once lived in the biggest home on the block, that will be intriguing to future buyers.  If the worst home on the block needs major foundation work, a roof, and windows and would cost a great deal to get it up to snuff, it might not be the best investment.  If you are savvy about finding good contractors and can do some work yourself, consider purchasing and renovating the icky house in a great neighborhood!

6)  Choose a home that has eco-friendly features and make eco-friendly renovations.  From the tree huggers to the penny pinchers, home-buyers are increasingly desiring green homes.  Green homes sell for more than conventional homes; they sell more quickly and closer to asking price.  So, if you view your home as an investment, greening your investment will likely get you more green (money) when you sell, as well as saving you money while you live in your home.

If you are ready to buy a home and want to make sure you get the most bang for your buck and security in your financial future, let Conscious Real Estate guide you through the home-buying process. Call 303-908-9873 to reach one of our agents or email our owner, Allison Parks, at [email protected].

10 Reasons to Move to Denver Right Now

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An eerie glowing full moon rises behind a tall skyscraper in the Denver Colorado skyline.

An eerie glowing full moon rises behind a tall skyscraper in the Denver Colorado skyline.

1)  If you haven’t already heard, Denver has 300 days of sunshine per year.  It keeps us cheerful and bright.  Sunshine combats Seasonal Affective Disorder and allows us to occasionally wear shorts in December.

2)  The mountains are right there.  Not a skier or snowboarder? Hike. Kayak. Climb. Snowshoe. Stand-Up Paddleboard on the rivers. Take photographs. Breathe.  Even if you choose to never set foot in the mountains, the front range always looks stunning from the city.

3)  Strong economy. Denver has diverse and growing industries – technology, natural gas, clean energy, mutual funds, tourism.  Our unemployment rate is lower than that of New York City.

4)  No shortage of great restaurants.  When I need to entertain guests, my problem isn’t “Which restaurant is good enough?”  My problem is “Which great restaurant is perfect for this occasion?”

5)  Lower cost of living than coastal cities.  Considerably lower.  The median price of a single-family home in Denver was $285,000 in the third quarter of 2013, compared to New York’s median of $515,000.

6)  Parks. (No, not Allison Parks, though I am a GREAT reason to move to Denver.) Denver has the largest city park system in the nation. Denver has more than 200 parks within the city and 20,000 acres of parks in the nearby mountains, including spectacular Red Rocks Amphitheatre. The city has its own buffalo herd and every year plants more than 200,000 flowers in 26 formal flower gardens.

7)  Denver is a cultural city with the second highest educated population in America. In its Old West days, Denver had a performance of Macbeth before it had a school or a hospital. Today, the Denver Performing Arts Complex has nine theatres seating 10,000 people and is second only to New York’s Lincoln Center. The seven county metro area has a self-imposed sales tax for the arts that raises up to $40 million a year, which is distributed to 300 arts organizations and facilities.

8)  Denver is one of only a few cities to have seven professional sports teams. Denver also has horse racing and a professional rodeo. Denver has 90 golf courses, 850 miles of bike paths and the nation’s largest city park system.

9)  Denver brews more beer than any other city.  If you’re a beer lover, you could tour artisan breweries for days.

10)  Denver really is the Mile High City. There is a step on the State Capitol Building that is exactly 5,280 feet above sea level. In Denver’s rarified air, golf balls go ten percent farther. So do cocktails. Alcoholic drinks pack more of a wallop than at sea level. The sun feels warmer, because you’re closer to it, but your coffee is cooler, because water boils at 202 degrees.

If you’re ready to relocate to Denver, let Conscious Real Estate help you find your new home! To contact one of our agents, call 303-908-9873 or email our owner, Allison Parks, at [email protected].

Nonprofits Continue to Struggle After the Recession

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A purple button with the word Give on it

While most economists agree that the Great Recession is over, many nonprofits in Colorado and across the nation have not recovered from their fundraising declines that began in 2008.

The Colorado Nonprofit Association reports that while nearly 58% of our state’s nonprofits state that they will meet or exceed their individual donation goals, more than 34% will fall short.  Nearly 77% of Colorado nonprofits have noticed an increased demand for services this year, but 22% had to cut back on programs and nearly 17% turned away clients.

Food pantries have taken a large hit, as the food stamp program benefits have been decreased.  The Colorado floods also hurt many nonprofits, as donors redirected their giving from their usual beneficiaries to the flood efforts.

The Denver post reports experts’ estimate that it will take about seven years for charitable giving to return to the pre-recession levels.  People are reluctant to part with their money unless they think the economy is stable.  On a positive note, Colorado Gives Day raised $15.4 million for Colorado nonprofits in 2012, while 2013 Colorado Gives Day broke a record by raising over $20 million.

Here at Conscious Group, every day is Colorado Gives Day.  We strive to always give back to our local and global community, by contributing 10% of all commissions from home sales and purchases to the nonprofit of our clients’ choice.  Come make a difference with us when you buy or sell your next home – it feels pretty good and you might just have fun!

How To Make Money By Renting Your Home on Airbnb and VRBO

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concept of making money from a house

Renting out a home may not be desirable for everyone, but homeowners can supplement their income by renting their home or a room in their home on the popular vacation websites, Airbnb and VRBO.  I first learned of these sites when a friend decided to try Airbnb in New York City as an alternative to a hotel room.  A decent hotel room in New York can easily cost at least $300, while she found a room in someone’s home for $100.  She said the homeowner made her a lovely breakfast and showed her some fun places around the neighborhood, making it a better experience than what she would have had in a hotel.

At Airbnb, trustworthiness and customer satisfaction are highly valued and maintained through a 24/7 call line and review postings.  Vanessa Grout, a contributor to Forbes, writes that the popularity and feedback of this service has led her to believe using Airbnb to earn extra revenue for her second home is a great idea.  Also, if you can only rent a room in your home, Airbnb has a feature where you can market the room to people who share the same interests as you, so you could choose to rent your home to hockey fans or people who practice yoga!

So, how could this work for you?  If you purchased a mountain property in a desirable destination as an additional home, you could rent it out when you are not using it to generate additional income.  If you own a home in Denver and travel often, you could make money by renting your home while you are away.  Or, if you simply don’t want a full-time roommate, but have a spare bedroom, you could rent your bedroom part-time for additional income.  Clients in Boulder and Fort Collins have told me that they have no problem renting their homes to the parents of students during graduation week, so they leave town and have their vacations paid for!

Be aware:  Controversy has begun in New York, Miami, and Chicago, with complaints that people offering their homes on Airbnb are pulling revenue away from hotels and not complying with tax and zoning regulations.  A few Airbnb users have been hit with fines in New York.  Thus far, similar problems have not arisen with Airbnb and VRBO users in Colorado.

A Few Tips For Renting Your Home on Airbnb: 

Get insured.  Airbnb provides up to $1,000,000 of insurance coverage to its homeowners for loss or damage due to theft or vandalism caused by an Airbnb guest – this does not take the place of homeowners or renters insurance. Review your policy with your insurance carrier to make sure you have adequate coverage. It would also be sensible to secure valuables in a safe and store clothing in a separate locked closet.

Find long-term guests. Set a minimum stay of two or three nights. One night is just not enough. You don’t want to be a hotelier, deal with transients, or frequent key coordination.

Leave instructions. Leave a detailed list of instructions for your guests. You’ll receive many fewer questions during the course of their visit. Guests need to understand things like how to turn on the television, pool heater, alarm system, or any other tricky device.  Also provide a list of safety instructions and useful telephone numbers.

Denver Housing Bubble – Fact or Fiction?

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Energy efficient house graphics with question and percentage marks against grey background

Is the Denver housing market is in danger of a bubble?  If someone you know has purchased a home in the Denver metro area this past year, you will certainly have heard about skyrocketing home prices, bidding wars, and properties often selling for higher than the asking price.  Considering that the home prices have quickly been rising while our nation’s economy still feels shaky, this is an understandable concern.

As with any bubble, real estate, stock market, or otherwise, a bubble can only be predicted in hindsight.  We don’t know where the peak (or the crash, for that matter) will hit, until we are past the hump or slump.

It’s worth mentioning that the Denver real estate market was not as negatively affected as many parts of the United States during the recession.  The subprime mortgage game wasn’t as prevalent in Denver, our economy remained stronger than many major cities, and our percentage of foreclosures was considerably lower.  The Case-Shiller Denver Home Price Index reported that metro Denver home prices have met and exceeded the pre-crash peak in 2013.

Much of the price appreciation has been due to the drop in interest rates.  During the recession, interest rates have been at an all time low, in the Fed’s attempt to keep money in the system and create more consumer confidence in home-buying.  Whether the attempt was psychological or not, when you buy at a low interest rate, as long as you can make your mortgage payments, you will greatly benefit in the long run by saving a boatload of money throughout the years on interest.

Denver, depending on which statistics you read, historically has had a 5% appreciation on home values.  (I have seen statistics reporting this number as high as 9%, but for sake of being conservative, I will report the lowest number I have seen.)  Most investments won’t yield more than 10% per year on average, and let’s face it – you can’t host a holiday party in your mutual fund.

Overall, the Denver economy is pretty strong.  Even if home prices drop for a bit, they most likely will recover and continue to rise.  Our state’s population has grown at almost double the national rate over the past few years.  State Demographer, Elizabeth Garner, states that of this growth, 55-60% of people are moving here due to a job change, indicating that Colorado is showing job growth.  Also, many young families are eschewing the coastal cities for Denver for lower taxes, lower cost of living, access to parks, and sunny days.  The Denver economy continues to grow with diverse industries – natural gas, mutual funds, clean energy, technology, and well… marijuana.

So, what do I recommend?  If you’re financially and emotionally ready to purchase a home, do so.  Interest rates are still low enough that even if home prices drop after you buy, you will still save money in the long run.  The Denver economy has remained strong and shows no indicators of slowing down.  The population keeps growing in Denver, and increasing demand for homes will keep prices up.

If you think you may be ready to talk a real estate professional about purchasing or selling your home, please contact Allison Parks at Conscious Real Estate at 303-908-9873 or [email protected].