This is not wonderful news for home sellers in the Denver area that are in a position where they need to move their property. However, savvy investors who are dialed into the numbers, are poking their heads out from behind the curtains. Investment purchasing hasn’t looked this sweet in quite a while!
One of the sweetest spots in Real Estate Investing is in the area of Student Housing.
Student Housing, according to The National Center for Education Statistics, will grow significantly in the next 8 years. College enrollment will rise by 13% between 2007 and 2018.
Some of the pros for anchoring your real estate investment strategy around student housing may or may not be obvious;
- Growth is based on college enrollment not on marketplace economics
- Purchase location is very predictable
- College and government funding creates market strength
In this growing market there are also some significant negative factors that you need to consider;
- Leasing is done for a short, intense period each semester
- More contracts due to a per-person rather than per-unit concept
- Heightened wear and tear on units = higher maintenance costs
- Need to appeal to both students and parents
In the Denver area, given the large amount of college and educational facilities, there is a lot of room to buy into this market. With regular turnover and some pretty intense management needs, make sure to do your homework well.
I work primarily in the investment and rental management sphere in the Denver Metro area, so if I can be of any assistance, I would love to help.
Tags: Denver Investment Property, Denver Real Estate Investing, Property Management Service, rental properties
