New Home Investing
There is currently a trend in real estate investing toward the purchase of new homes. Investing dollars in newly constructed real estate makes a great deal of sense. First of all, there is absolutely no deferred maintenance. An investor is able to receive a stronger cash flow because there are no unexpected repairs (water heater, furnace, roof, etc.) since all elements are new. Investors also enjoy a one-year warranty with most builders in case any new items fail in the first year.
Another benefit of buying new is the appeal to renters. Most developing areas have an infrastructure that is desirable to tenants. Many new areas of the Pikes Peak region include master-planned communities with local grade schools, nearby parks, recreation centers, and more! With these types of neighborhoods, investors are more likely to find long-term tenants who want to stay put.
We are seeing a lot of real estate investors coming in from other states right now. These investors are often rolling their appreciation from slowing markets into cash flow properties here. Why Colorado Springs? Because it's a great place to live! In fact, this year "Money Magazine" ranked Colorado Springs the NUMBER ONE "Best Big City". This has created a desirable atmosphere for investors.
There are a lot of other favorable facets of the Pikes Peak Region.
- The area has a consistent rate of appreciation.
- Because of the recent decline in building permits, investors can experience discounts on new inventory homes. New home builders are motivated to get their spec homes moving.
- There are many favorable options for non-owner-occupied investor loans right now.
- There is an incredible rental market here. Because of the four military bases, colleges and universities, and international businesses here, there is always a constant influx of new tenants and starter families.
- Property taxes are very reasonable.
- There is stable job growth and low unemployment.
- Colorado Springs has had stable rent values for a long time now.
Along with the pros, there are always things to be cautious about when investing in real estate. This is why it's imperative to have exceptional representation. First of all, you don't want to put your money into a community that is saturated with rental properties. You also want to make sure your investment is safe in a stable (and consistently appreciating market). There are some areas of Colorado Springs that provide a more consistent tenant/renter base than others.
Check out our Property Management page if you are interested in a hands-off approach to real estate investing. Byrne Management, LLC offers a turn-key solution to the successful management of rentals that helps to increase value while minimizing headaches.
Call us today to get some suggestions for desirable rental areas and property types. There are always great opportunities and we are watching the market for you daily.
