Buying Property as an Investment
The National Association of Realtors forecasts that the vacancy rate will further tighten to 4.8% in 2022 (5.1% in 2021) and rent growth to average at 10% (7.8% in 2021). One of the main forces behind the rental market's upswing is the Covid-driven work-from-home trend. Is real estate a good investment in Colorado?
The Colorado housing market may be one of the best in the country for investing in real estate. Colorado landed the following rankings: 3rd best state for low property taxes. 8th best state for high traditional rental income.
Real estate investors make money through rental income, any profits generated by property-dependent business activity, and appreciation. Real estate values tend to increase over time, and with a good investment, you can turn a profit when it's time to sell. Rents also tend to rise over time, which can lead to higher cash flow.
Buying Investment properties has many opportunities. People are buying Commercial property and collecting monthly rents from hair salons, restaurants, furniture stores and other businesses. You can also purchase homes to rent as a single-family residence, or for an Airbnb. Airbnb’s work great for larger families and friends outside of a hotel stay and have a lot more amenities and space. Many property owners will buy a home for this use and rent out to others throughout the calendar year and use it for their own vacation place during certain times. Their home away from home. An investment property works in so many areas such as the mountains, large cities and small communities with snow skiing, fishing, boating, hunting and various sites to see. An average Airbnb can be rented out by the number of rooms, guests, and nights they stay.
The key is to do your research to find out which type of real estate investing is the best fit for you.