Did you get your “notice of valuation” from the city of Denver? The city is working hard to accurately value your property so they can fairly tax households throughout the county and raise money for public services and projects. Denver recently launched a program called the Denver Tax Receipt where you can actually see exactly where your tax dollars go, I highly recommend checking it out!

Your valuation should be close to you Zestimate or actual market value of your property. If you are the worst house on the block, your property value probably came in higher than the actual market value. If the valuation is not accurate, you have the ability to protest it with the city by June 3rd. Please email me if you need help protesting this value (kassidy@LivingRoomDenver.com).

Did you know Colorado is ranked 5th nationally for most affordable property tax valuations? Our taxes here are actually very low. The median household in Colorado is paying about $1500 in taxes per year in property taxes. The highest state property taxes are in New Jersey where residents pay $7840/year. California has a bad reputation for high taxes, but residents are paying about $3414/year. The red state of Texas actually has very high property taxes, ranked 45 of 50 making it one of the most expensive state property taxes. We looked at tax rates at a state level, but remember that your actual taxes will be determined by the combination of state, county, and city taxes. 

Once I understood where your taxes go by using the Denver Tax Receipt, I felt very proud to be contributing to fund the important services that make our great city run. I’m also grateful to live in a state that has affordable taxes when compared to other places. It’s a whole new perceptive once you start looking at the big picture! 

Here is a video from The City of Denver

I love sharing with my clients the different ways to make their real estate purchases smart investments.  I want to share with you my six favorite ways to invest in the market. 

The Classic Move Up 
Start small and every few years sell your current home and upgrade into something bigger. Great for every phase of your life – condo, townhouse, single family to a mansion. As your life grows, your home grows with you!

Roommate Rental 
Live with roommates who pay the mortgage.  This is great for people who like communal living. Room size, privacy, and two living rooms are important. This is a great way to get started as a young person before you have permanent roommates aka a husband/wife and children!

AirBnB Rental
Find a place that has a separate area which can be rented short-term.  Great for people who travel a lot and live in highly desirable areas. It is smart to avoid HOAs and in Denver, it must be the primary residence to legally rent short term.

Handyman Renovations
Find a place that needs improvement.  This is great for people who are handy and have excess time and cash. Best if you can find these deals off the market! If you do it yourself, you must have cash for the materials. A renovation loan can also be an option if you plan to hire a general contractor. If you are doing a quick flip, remember that if you live in the home less than two years, plan to pay taxes equal about 30%.

Denver & Mountain Balance
Purchase a second home in the mountains and AirBnB your Denver place on the weekends or vice versa. Great for people who love to ski and hike but also have obligations in the city. Live the ideal Colorado life and make a great income while doing it!

Real Estate Retirement
Purchase a new primary residence every two years, converting your old primary into a rental, and never sell. Great for people who want to retire and not work anymore. If you focus on cash on cash return when you make the initial purchase, you should be able to cash flow each investment for monthly residual rental income. Within 10 years you could be making about $5,000 per month. After thirty years it is pure profit and ideally, the values of the homes have tripled.