Should we continue to rent?

Dear Joan,

My wife and I are in the millennium generation and we decided when we got married three years ago that we would just rent, and not saddle ourselves with a mortgage and a property to care for. We felt it would save us money that we could use to travel and purchase whatever we wanted. Plus, we could easily move if we had career opportunities open up in other cities. Now, after living in Eagle County for two years, we are rethinking our decision for many reasons. Do you think our reasons still have some merit? We feel we are at a confusing juncture in our life plan.

Dear Confused,

I commend you for taking a second look while you are still young enough to have great benefit from modifying your plan. I think many people in your generation have a distorted view of what home ownership means and can do for ​them​. I think there is much more freedom derived from owning your own home than there is from being at the mercy of a landlord who can sell the property you are living in out from under you, as well as raise the rents annually. Besides the probable significant tax benefits that often go with owning your primary residence, it is like a forced savings program that can have large and sometimes huge benefits.

Rent vs. Buy Real Estate

My husband and I made our first purchase in a neighboring ski county. We were able to buy a one bedroom condo after being married for a few years. We then sold that and were able to buy a two-bedroom very modest older condo in Eagle County. We sold that in a few years and were able to buy a home with a little land in Western Eagle County. We eventually sold that (after some major remodel) for 13 times what we paid for it. We would have never “saved” that much money in a bank account nor would our saved money have increased in value like it did in our home.

Most people move every five to seven years; we didn’t. So what if you do stay​? Then you will be paying​ someone else’s mortgage for three, five, seven or 30 years? What do you have to show for all of your monthly payments? There are many statistics tied to financial success and home ownership. There are ​successful people in rental properties​, but most wealthy individuals own at least one home​ and usually an investment property as well​. As far as finding other opportunities in your careers and needing to move, you can either sell or rent your property and have someone else pay your mortgage! Right now, interest rates are lower than I have ever seen them in 29 years selling real estate in this valley, and rents are climbing at a fast pace. There are loans for first-time home buyers that require little or no money down. I strongly suggest you find the best Realtor you can to help you see all of the opportunities available to you. Congratulations for not being one of the sheep headed for a financial demise in ​your not too distant​ future. Best of luck to you!

Joan Harned is an owner/broker for Keller Williams Mountain Properties and heads up Team Black Bear, her own real estate team. Harned has been selling real estate in Eagle County for 27 years, is a past chairman of the Vail Board of Realtors, past Realtor of the Year, past director on the Great Outdoors Colorado Board and a member of the Luxury and Land Institutes. Contact Harned with your real estate questions at Joan@TeamBlackBear.com, 970-337-7777 or www.TeamBlackBear.com.

Article originally published March 21, 2015 and can be seen here as it was published.

Is Winter a good time to purchase ranches?

Dear Joan,

My family and I came for another holiday vacation in Vail, and I have finally decided to pursue my dream of owning a small ranch property in Colorado. Of course the family would like the property to be within an hour of Vail and/or Beaver Creek. So, after searching the Internet and making broker phone calls, I have found a property that might be just perfect for what I want. Here is my question: The listing broker said the property actually had other interested buyers right now. You can’t even access the property easily this time of year due to unplowed roads. Is it that likely that there are other buyers looking at this right now? I hate to sound suspicious, but this seems unlikely in the dead of winter!

Dear Suspicious,

In Eagle County there is no such thing as the “dead of winter.” Winter is our top visitor and selling season. Summer is becoming more and more popular, but still has not overtaken winter.

The Western Slope ranch land here is still a bargain for the buyers, although the market is getting a little stronger.

Let’s ​look at the facts​: You are, or were recently, here, and the desire for beautiful Colorado property was reignited in you by the winter visit. It is equally beautiful and fun here in the summer and winter​,​ and personally I love the fall. At any rate, back to your question, most of the brokers I know in this valley are definitely honest. I sell ranch property and I currently have multiple buyers interested in outlying property that may or may not have winter access. There is something very magical about a snow-covered ranch on a bright sunny or snowy day. The wildlife, the wide-open space to make your own tracks snowmobiling, snowshoeing or cross-country skiing all are true pleasures. ​That is not even considering the ranch aspect. ​

The Western Slope ranch land here is still a bargain for the buyers, although the market is getting a little stronger. The largest multi-million dollar ranches we have sold had buyers who originally came in the winter​ and saw the property for the first time then​.

My advice to you would be to pursue the property now, if at all possible. By spring, it could very well be under contract. You can see about viewing the property in various ways (snowmobile, ranger, have road​s​ plowed, snowshoe, aerial drone pictures or helicopter if the price warrants the expense). And/or you, with the help of your seasoned ranch broker, can write a creative contract that would allow you to delay closing until you could drive on the property with a series of monetary compensations for the seller to delay the closing. There is almost always a way to work out a situation where a seller wants to sell and a buyer wants to buy, if both parties are guided by experienced brokers that work toward a win-win situation. Do not pass up your opportunity without exploring your options. Best of luck to you!

Joan Harned is an owner-broker for Keller Williams Mountain Properties and heads up Team Black Bear, her own real estate team. Harned has been selling real estate in Eagle County for 27 years, is a past chairman of the Vail Board of Realtors, past Realtor of the Year, past director on the Great Outdoors Colorado Board and a member of the Luxury and Land Institutes. Contact Harned with your real estate questions at Joan@TeamBlackBear.com, 970-337-7777 or www.TeamBlackBear.com.

Originally published in the Vail Daily on 1/10/15 and can be seen here.