The national news media is reporting bad news all over the map about the housing market.  So why would now be a good time to invest in Colorado real estate?

Go Local

The "housing market" consists of a compilation of local markets around the country.  While the national numbers are down, Colorado's housing market looks pretty good.  The Case-Shiller index, which is a respected baromete of housing markets, reports that Denver's market is only one of a few cities that have either gone flat or up in price over the last few months in month over month data. 

Even within Colorado, markets are decidedly different between Denver, Aurora, Ft. Collins and Colorado Springs.  In short, pay attention to local markets, not national news.

Colorado Didn't Bubble

Unlike many other areas like FL, NV, AZ, and CA, Colorado did not shoot up in value between 2000 and 2006.  In fact, prices only went up at a moderate pace, then began to flatten out about halfway through that period.  Likewise, since there was no bubble, there was no bursting.  Colorado's housing prices have dropped considerably less then the aforementioned states during the last 24 months.

Properties Will Cash Flow

On the low end of the market, properties will cash flow immediate as rentals.  A typical $100,000 house in Denver or Aurora will rent for around $1,000 per month.  Thus, even if prices do not go up, you can still make a profit from renting out properties.

Interest Rates are Low

Historically, interest rates are very low, which means lower payments and more cash flow.  Buying and holding on to properties for long term appreciation and cash flow is a smart move when you lock in interest rates at 6% or less.

Tax Benefits

Buying and holding real estate is still a great tax writeoff because of the depreciation factor.  Thus, a property which yields $3,000 per year in income could actually be a loss on paper.  This loss is deductible against other income or future income.  There are certian rules that must be met so speak with your tax advisor to determine how it would work for you.

Colorado Has a Vibrant Long Term Economic Outlook

Colorado's economy is down a little, but better than most states.  Coloado's economy is divers enough to last for the long term so that more people will utlimately move in than will move out.  Eventually, the increased population will lead to increase in demand for housing and thus appreciation for properties that you keep.