Why Buy An Investment Property in Durango

Should you buy an Investment Property in Durango? Owning an investment property in Durango, Colorado is owning an investment property in a county whose population is increasing.  A city whose population is increasing.  An area that draws both students and outdoor enthusiasts on a regular basis.  A town where real estate prices continue to rise and, most importantly, in an area where the supply of rental homes is barely keeping up with the demand.

Can’t think of any reasons not to!

Durango Attractions

Durango draws many new people every year for a number of great reasons including the spectacular scenery, inviting climate and the area’s numerous attractions and events.  Attractions include the Durango-Silverton Narrow Gauge Railroad where the rider will “experience Colorado at its best…wildlife, waterfalls, majestic peaks, all from the view of an 1880s train”.  We also are home to the annual “Music in the Mountains” summer music festival whose delight it is, “To produce an exceptional summer music festival with musicians of the highest caliber; entertain, educate and delight audiences with the richness of classical music”.

Just when you think Durango would be slowing to a grinding halt, we have the annual Snowdown Festival every January/February.  It is described as “One of the largest winter festivals in all of Colorado.”  Others say, “(Durango) pulls out all the stops for the nearly 40-year-old event”.  Not far from town, we have Mesa Verde National Park, boasting “a spectacular look into the lives of the Ancestral Pueblo people who made it their home for over 700 years, from AD 600 to 1300”. When people aren’t chatting up the local artisans or shopping at unique shops, they can be found outside because of the multitude of beautiful days and places to explore.  Durango boasts more than 265 days a year of sunny skies! Sunny, dry summers and winters worthy of some of the best powder skiing you’ll ever experience.

Do you golf, hike, bike, kayak, ski or snowboard? Then welcome home! Oh! Did we mention fishing?! The stunning Animas river is one of the “best Gold Medal Water fly-fishing sections in Colorado”!  And Durango is also known as a college town thanks to Pueblo Community College and Fort Lewis Colleges.

Housing Prices

If you’re thinking of buying an investment property here it’s easy to see why the location, climate, attractions and events make it an easy choice.  But the cost of housing is rising and the supply of affordable homes priced for first-time buyers can be daunting – making the appeal of renting your property not only a viable solution, but a necessary one.  Zillow.com reports, “The median home value in Durango is $397,300. Durango home values have gone up 5.9% over the past year. The median list price per square foot in Durango is $266, which is higher than the Durango Metro average of $252. The median price of homes currently listed in Durango is $479,000.” “According to appraiser and real estate consultant, Bob Allen, “Supply met demand until the recession, and we really haven’t recovered”.  And for some, renting has many advantages that outweigh the advantages of home-ownership.

In addition to meeting a demand and producing a steady stream of income for you, as the owner, you gain from an increase in the property value over time due to changing conditions in the area.  And your investment property doesn’t necessarily have to undergo any changes for that to hold true.  Homes that are severely outdated are selling above asking price every day.  In some areas, the value of your investment may rise significantly over the course of a few years.

Investment Property Worries

When you think about owning an investment property, of course you picture your property value increasing as a natural outcome of your keen insight to buy in Durango.  The thousands of dollars in additional income every year doesn’t hurt either.  What may be holding you back though is the picture of a tenant interrupting your life for at 3 in the morning for a maintenance issue, or the possibility of a non-paying renter, or facing the end-of-year accounting mystery.

Renting an investment property can be a challenge if you go it alone!  The advantages of buying investment properties are numerous, but just because you’re insightful doesn’t mean you also need to be your own property manager.  Eliminate your worries about renting your property by hiring a responsible property manager.

Excellent property managers turn the prospect of buying investment properties into realities and are responsible for handling the complexities of being a landlord. Did you think about the value that your investment property can command in rent or rent increases or collecting rent, maintenance, emergency repairs, inspections, retaining long term renters, screening, HOA’s, accounting, tax deductions, documentation, rental policies, contracts, marketing and a host of other obligations? If not, then a Property Management professional may be the perfect solution for making ensuring your Investment properties are a thriving success (read more here about reasons to hire a property manager).

Housing prices are going up in Durango and have been for some time.  Durango’s housing costs are nearly twice the national average and owning investment properties that help meet the demand for area residents can be an attractive opportunity for smart investors.  Don’t miss out!

Sources:

https://durangoherald.com/articles/103668
https://durangoherald.com/articles/125115
http://www.managemyproperty.com/articles/hiring-a-property-management-company-25

http://duranglers.com/animas-river-fly-fishing
https://www.nps.gov/meve/index.htm
http://www.durangotrain.com/
https://www.durango.com/
www.zillow.com