As you prepare your finances for the upcoming tax season, you may be thinking about new ways to invest your money and looking for options to get a better return on your investment. The current condition of the Colorado economy, increased demand in the Denver rental market and projections on continued low interest rates all point toward rental properties as a possible good investment. Condo properties in particular can provide an excellent opportunity as a rental investment due to their low maintenance nature and highly sought after appeal for an urban downtown lifestyle.
Colorado Economy Maintaining Positive Positioning on Economic Index
The Colorado economy in general and the Denver metro real estate market specifically are showing signs of continued recovery as job growth in the state is maintaining and home property prices are starting to see modest increases across the board. A recent Goss Institute for Economic Research survey released last month showed that the Mountain States region (includes Colorado, Utah and Wyoming) is maintaining an economic expansion trend by achieving an economic index value above 50 for 38 straight months in a row. The survey also pointed toward economic optimism over the course of the next six months, due to improvements in the national economy and an upturn in residential housing.1
Low Interest Rates Point to Favorable Buyer’s Market
The federal government is continuing to support a low interest rate environment until the job market shows significant improvement nationwide. With the national job market creeping along at a snail’s pace, interest rates are remaining low, making it a favorable time to invest in the real estate market.
Denver Metro Condos a Smart Investment
Whether you’re a new investor in real estate properties or a seasoned veteran, investing in a Downtown Denver condo property can provide financial advantages, as well as property management benefits. At the end of 2012, rent gains in Denver increased 8.1 percent year-over-year and Denver ranked fourth among cities surveyed where rent prices have increased the most in 2012.2 These positive trends for the Denver metro area suggest that rental properties can be a viable financial investment.
Investing in a condo property, in particular, can be advantageous for renting as condos are typically located in urban areas where there is a consistent high demand of people looking to rent versus buying. The demographic of urban lifestyle condo tenants tend to include a younger, more transient crowd that enjoys the freedom and flexibility of renting.
Condos also can be favorable rental properties since condo properties are known to have a strong Home Owners Association (HOA) presence. HOAs can be an important asset for condo landlords because it reduces the maintenance responsibilities that landlords typically are required to provide to their tenants. Every HOA includes different amenities and responsibilities, but most include snow removal, outside building and landscape maintenance, as well as shared space maintenance in areas such as the lobby, pool and fitness room. Depending on the configuration of the condo building, utilities may even be maintained by the HOA, which can reduce the hassle and worry about whether your tenants are maintaining your property appropriately.
If you are ready to expand your financial portfolio by investing in the Denver metro real estate market, contact the Denver condo and loft real estate experts at New Era Realty today. New Era Realty specializes in helping Denver Metro residents get the most out of their real estate investments.
1 Denver Post - Business Conditions Index
2 Denver Post - Home prices and rents in Denver up year over year