In case you are considering how to invest your hard-earned money- we have a suggestion for you. Make a purchase of Colorado investment real estate. Before we start with suggestions, let’s make some things clear. If you are someone new at real estate business, first you should know what are you going into. You need to have clear information on what is essential to know about the characteristics of the purchase you are about to make. That’s where Erealtyco jumps in. We are going to present here Colorado’s investment real estate. You shall learn what investment real estate is, and how to estimate it. In term of whether it is worth investing your money in that in Colorado or not. And that is the most important thing to know when making a high-value investment, such as investment real estate.
Learning about Colorado investment real estate
What the expression investment real estate refers to?
You probably can guess what investment real estate is based on the very words contained in it. But you still need to know more detailed about it. This kind of real estate is the realty intended to make money purchasing it. What does this mean? It means that this is not residential real estate, intended for living in it. It is intended for further sale at a higher price. Or otherwise, for renting it and by that making money on regular basis. In other words, investment real estate should generate money through price appreciation, or through rising rental prices.
The examples of investment real estate are apartment buildings, rental houses or any other building that may be rented, or sold at a higher price, and that way generate the capital gain. The consequences of purchasing this sort of real estate may be seen through taxation. The taxes paid for the investment realty are often different from the ones for the residential real estate.
Colorado rental realty investors know-how
The information that almost 1/3 of housing units in Colorado are rented, speaks for itself why you should invest in it! That is the official data from US Census Bureau. Nevertheless, as we previously said, you should know some things about investment real estate. Prior to purchasing them, of course. Because being a real investment real estate investor is a tough job.
Colorado Tenant and landlord rights on investment real estate
The state of Colorado protects the quality of a rental property. Therefore, landlords have the responsibility to keep the rental property at the highest quality possible. Also, the landlord is responsible for doing any repair required. Furthermore, the owner of a rental real estate must make sure that all the installations (plumbing, heating, electrical) work properly. Another landlord responsibility of the landlord is to provide the reasonable amount of hot water. The responsibility of the tenants is to keep the rental clean and to deliver the rental in the same condition as they received it. The law sais that the landlord must give three days deadline to the tenant before he/she gets evicted.
Do the calculation of real estate price/rental price
In order to be a good realty investor, you need to do the financial due diligence. And you need to do that before you make an investment. In those calculations, be real about the income you are probably able to make from investment real estate. You need to keep fair prices in order to attract tenants. The tenants are those to earn you money by paying the rent.
The vacancy rate makes the crucial influence on your rental real estate
Check on the vacancy rate for Colorado. It is something that helps you figure out if it is a good moment to purchase an investment real estate in Colorado. Those rates differ very much, depending on the city, and every neighbourhood of every city. There has been a rise in average vacancy rate for Colorado state. It rose from 4.3% to 5.6%. It means that it might be a good time to invest in rental realty in Colorado. What you should do is to carefully examine different parts of the state, and make a wise decision on where to invest!
Benefits from investment real estate taxation
If you chose to be a real estate investor in Colorado- Lucky you!!! There are so many benefits from real estate property in Colorado. Besides the additional income as one of the biggest benefits, there are also benefits from taxation. We strongly recommend you to consult a lawyer about this matter. And choose a lawyer with the experience in Colorado investment real estate purchasing. Because, although we shall give you some information about benefits you can make purchasing an investment real estate in Colorado, it doesn’t necessarily mean you will be able to make use of all of them.
The most usual deductions for landlords are:
- Mortgage interest
- Advertisement for your rental for rent
- Professional Feeding
- Home offices
- Cleaning or/and maintenance
Conclusion: Should you make a purchase of investment real estate in Colorado?
If you ask us- we strongly recommend you to make such an investment! We shall give you some reasons for that, based on predictions for Colorado investment real estate market:
- The prices for investment realty in Colorado are high, but they are predicted to grow further, so you could make a capital gain.
- The rental prices are also high, but they follow the trend of property prices, which means the are going to rise too.
- Colorado economy is one of the fastest growing in the USA. Especially the economy of Denver, being the city with the fastest growing economy of all the U.S. cities!
- Tourism is becoming more and more important part of Colorado economy. Purchasing a Colorado investment real estate to rent it to tourist might be a good idea.
- Taxation is one of the most important factors to attract Colorado investment real estate buyers.
In case you need to consult the Colorado realty experts, contact Erealtyco and be sure your investment is in good hands!