Kim Butler

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(970) 646-1425

Northern Colorado Real Estate Blog

Should I RENT or BUY a House?

Posted On: January 31st, 2018 2:12PM

People often ask for my opinion on whether it is wise for them to Buy a home or continue Renting. The best answer is… it depends! The question of whether to BUY or RENT depends a little on the current economy and a LOT on your personal circumstances. The biggest question is how long you plan to live in one house. The LONGER you live in one place the greater the ownership benefit. Renting might be best for short-term situations, but not always. A word of caution: Be careful that short-term doesn't stretch into long-term. A wise man once said, “There is nothing quite so permanent as temporary!”

Because so much depends on your personal circumstances, you should consult with a trusted advisor that understands your situation and cares about your financial welfare.

Personally, I always believe it is wise to get out of consumer debt. You will sleep better when you are out of debt and you will have more money to invest.

That said, there is good debt and bad debtGood debt creates positive cash flow.  The house you live in does not create cash flow, but it might be appreciating in value. A rental house you own creates cash flow and potential for appreciation. That's why we own rental properties.

We moved to Loveland in July 2000. It was a Sellers market just like it is today. Prices were really high and all negotiations were in favor of the Seller. We paid $189,000 for our home. During the market CRASH of 2007-2012 our home was valued at $250,000. Today it would sell for $340,000. So even though real estate values go up and down... overtime in Colorado they go UP. During the 17 years we have been living here, rents have doubled, but our mortgage did not change and today our home is paid off. That is a good feeling!

We lived in San Diego from 1990-1998.... RENTING.... That was a big mistake! If we had purchased a home in California during that time we would have gained huge appreciation.

You will get different advice from different sources. Long-term, owning real estate is better than renting. The challenge with short-term thinking is that time passes so quickly. If you are able to keep your rent really low and get your consumer debt paid off in a couple years, then you would be in a stronger position to buy with confidence. But if your rent is HIGH, that strategy may not work for you. If home values are likely to go up, you will miss out on appreciation if you are renting... and rents will go up too.

Try these Rent vs. Buy Calculators to see it they help you see your options and the outcome over time.

Rent vs Buy a Home Calculator

Since everyone's situation and the market is unique and complicated, it is smart to get professional advice.

Please give us a call 970-646-1425 with all your real estate questions.

The Butler is at your service!

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Mortgage Rates are Rising: Jan. 25, 2018

Posted On: January 31st, 2018 12:39AM

Since 2008 the mortgage interest rates have fluctuated back and forth within the 3-4% range. As we begin the new year, in the month of January 2018, we have seen interest rates for home loans on the rise for three straight weeks.

What will this do to the residential real estate market? It might spark an increase of seriousness in some of the fence-sitting home buyers due to a fear that rates might continue to go up. If they do go up by 1-2 percentage points, it could shock the housing market, so I doubt that they will go up very far. Nevertheless, hard to see the future is!

FreddieMac Primary Mortgage Market History

What are your predictions for the future of Mortgage Rates?

 Please give us a call 970-646-1425 with all your real estate questions.

The Butler is at your service!

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Student Loans are Evil Bottomless Pits of Despair

Posted On: December 13th, 2017 8:45PM

For many college students, Student Loan Debt has become a ball and chain that impedes their financial progress and lifestyle goals. They postpone marriage and family, they put off buying a home for a decade longer than their parent's generation. 44 Million Americans are SLAVES to their Student Loan Debt. This is one of the worst forms of consumer debt and it is crippling our economy.

Let me guide you in the video below to some shocking YouTube videos that pull back the curtains to expose this awful situation for the EVIL that it is.

This financial trap is so EASY to get into and so VERY HARD to get out of. Here is a list of excellent YouTube videos that you should spend time reviewing and then recommending them to anyone who is considering a SLAVE to a LARGE student loan. 

How College Loans Got So Evil by Adam Conover

You Won't Believe The Debt Some Students Hold

Faces Of The Student Debt Crisis In America

Voices of Debt - The Student Loan Crisis: Don't Major in Debt

It's Everyone's Economy: Why the Student Debt Crisis Affects Us All

One Trillion Dollars, Student Debt and Higher Education: Greg Gottesman at TEDxSeattle

The Lingering Effects of Student Loans

Please give us a call 970-646-1425 with all your real estate questions.

The Butler is at your service!

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Northern Colorado Real Estate Market Update

Posted On: November 30th, 2017 10:58PM

Everybody keeps asking me about how the local Northern Colorado real estate market is doing... Is it slowing down? Have the prices changed? When is the market going to CRASH again, etc, etc. and so I made this quick video to accurately show you what is going on in Loveland, Fort Collins, Berthoud, and Johnstown right now. Please comment if you have more specific questions! ???? 

You will discover that the lower price brackets (anything below $300,000) have mostly disappeared in the last couple years. The InfoSparks graphs in this video will tell the story. Please send me your questions and I will do my best to address them. The Butler is at your service!

Please give us a call 970-646-1425 with all your real estate questions.

The Butler is at your service!

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Comparing Homes by the Square Footage Price

Posted On: October 19th, 2017 3:19AM

How important is the price per square foot when buying your dream home?

Once in a while home buyers get all worried about comparing the price per square foot of one house to another. In this video, I will show you by looking at 6 months of Sales Data, that there is no such thing as a standard per square foot price in Northern Colorado. Many additional factors go into the formula for determining the VALUE of a home.

This fact also applies to New Construction homes.  The price per square foot for NEW homes in Loveland 2017 ranged from a low of $98 per SqFt to a high of $293 per SqFt


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