Northern Colorado’s beautiful mountain ranges and thriving economy have attracted thousands over the last few years. In fact, 26,547 people aged 20 to 34 moved to Colorado in 2017 – the third highest number in the country. This astounding growth rate has boosted its real estate market, increasing new development and bumping up property values. According to Trulia, Fort Collins and Windsor home owners enjoyed an 11.3 percent and 6.7 percent increase in their respective home values from 2017 to 2018.
While buying property in North Colorado can make for rewarding investments, make sure you do your homework first. After all, you want to be guaranteed that taking your chances with the North Colorado real estate market will bring profits. Here are some important things you need to know:
Calculate expenses beforehand
Investing in real estate requires a hefty financial commitment, so it would be best to calculate the estimated costs first. You can start by establishing your budget and assessing your current financial status to determine if you can afford the expenses. These include the down payment and mortgage you need to get started, operational costs, and even unforeseen expenses like possible renovations or legal fees. However, since Colorado has the sixth lowest property tax rate in the US at 0.57 percent, investing in real estate there is a potentially good deal.
Know the area
The best investors know how to spot a great location. Look for places where home values are likely to go up with new developments within the community. However, observe how these new infrastructures could affect the property you’re eyeing. Something as simple as a new high-rise potentially blocking your view of the city skyline can easily devalue your property.
You should consider accessibility too. Look for areas near major roadways and with multiple commute options like buses and trains. Moreover, it would be good to know about the weather in the area. Neighborhoods with no flooding problems during the rainy season could help save you from unwanted repair costs in the future.
If you plan on renting out your property, check out the average rent prices in the area and base your rent price on these. This will ensure that you will be giving tenants a fair price. Over- or underpricing your rental fee will have adverse consequences so be sure to do your research to maximize your property’s earning potential.
Fort Collins bears much potential as a great real estate investment hub. Its numerous employment and entertainment centers and the presence of the prestigious Colorado State University within its periphery make it attractive to students and young urban professionals seeking places for rent or a new living space. Also, with Interstate 25 near Fort Collins, residents can reach Denver in no time at all.
Look at multiple properties
Do not just grab the first property you find. The real estate market is huge and there are bound to be other great opportunities around. Look at other properties then narrow down your options to see which one is the best. This will depend on a lot of factors such as accessibility, proximity to public amenities, and neighborhood safety. Keep in mind that you will not be living there, so base your investment decision on the needs of your potential clients and not your own.
Carefully screen your tenants
Do not rent out to just anyone. Getting problematic tenants could be costly, so find qualified ones by doing a thorough background check. Check their credit reports to see if they pay their bills on time. To prevent unscrupulous individuals from using your space for their shady activities, check their criminal reports as well. The best tenants are those who pay their rent on time and who take care of the property as if it were their own.
Are you looking to invest in Northern Colorado real estate? I, Matthew Curry, can help you find the best homes in Fort Collins, Loveland, and Windsor. You can call me at 970-889-0307 or email me at Matt@welcometonoco.com.