I was just reading in the Boulder County Business Report about all of the different groups investing in Boulder. Steven Tebo, one of the smartest business men in Boulder, is expanding his real estate holdings. Denver-based Griffis Group of Cos. LLC just purchased The Boulders Apartments and Tom Barta, chief financial officer of Griffis, has said that “Boulder has always been an attractive rental market”. The Griffis Group believes that real estate will hold up better than any other asset classes.

It has been my personal experience that my own investments in Boulder County have done much better than my investments in the stock market. I like real estate because I can touch it, hold it and always know where it is. Due to the recent craziness on Wall Street and with the losses I have experienced in my mutual funds that I thought were safe, I sure enjoy owning my little rental properties in Boulder Colorado. I still believe that Boulder Colorado real estate is a fantastic place to put your investment dollars.

News, Trends

A simple rule for buying

Did you read the article in the New York Times last week by Warren Buffett?  While the focus was on the  stock market, there are clear and obvious parallels with our local real estate market since his article’s focus was about Equity Investment.

Warren’s rule on buying is simple: Be fearful when others are greedy and be greedy when others are fearful.  And right now in the Boulder real estate market, most people are fearful!  The reality is that over the next 5, 10 and 20 years, there will be noticeable appreciation of property values.

I can’t predict if home prices will increase or decrease from one month to the next or even 6 months (and beware anybody who says they can!) but I do know that home prices in Boulder county will increase as the economy improves.

Over a long period of time, the real estate market has weathered world wars and other military conflicts, the depression, numerous recessions, stock market panics and other national periods of crisis and people how have owned their homes have realized profits upon selling their home.

Warren’s ultimate point is that “Equities will almost certainly outperform cash over the next decade, probably by a substantial degree”. 

Real estate is the only equity investment where your money is leveraged and that will to be the topic of another posting!