Small towns aren’t just peaceful places to live but present valuable real estate investment opportunities. With a vast array of property types at different price points, small-town real estate can help investors diversify their portfolios, create unique income streams, and protect themselves from stiff competition in bigger markets. As do all real estate investments, a small town market comes with certain risks, so it’s important to study the market to ensure the property type you purchase aligns with the direction of economic growth. Here’s a look at some of the benefits of investing in smaller places, such as the Western Colorado realty market, to help you evaluate whether it’s the best move for you.
Fewer Barriers to Entry
Investing in real estate in a small town is a great way to diversify your investment portfolio with unique properties at a lower price point than most metropolitan markets. In a smaller market, you may be able to afford three to five different kinds of properties for the same prices as one luxury home in the city. The Delta County real estate market is an excellent example of a small town with several property types – single-family homes, townhouses, farmland, equestrian ranches, hunting cabins, and investment properties – affordable and appreciating. According to the Q3 economic update, the median sales price in Delta County increased by 12.7% compared to the same quarter last year.
Less Competition For Properties You Want
A smaller real estate market gives you more opportunities to buy, sell, and rent out the properties you want. In larger real estate markets with larger populations, you run into more demand than supply, which drives prices through the roof for normal buyers and investors. A lower population, however, means fewer investors, especially for specialty properties. Fewer properties on the market can also provide a more significant advantage when you sell or rent your property because buyers and tenants have limited options.
Lower Costs of Labor and Living
In a small-town real estate market, you may find that it’s easier to rehabilitate and renovate your property to help it fit the market’s needs. For one, many small towns have fewer zoning restrictions and building codes that dictate what you can do on the property. Furthermore, if the cost of living is lower in your small town, this usually correlates with lower costs of labor and building materials. If you decide to rent your property and you want to live somewhere else, you may also save money on property management.
Is Delta County Real Estate Right For You?
While small-town living may not be for everyone, small-town real estate investing offers benefits everyone can enjoy. To guarantee a return on your investment, look for areas with increasing employment rates, growing populations, and appreciating property prices. As a Western Colorado realty specialist, I am confident that Delta, Montrose, Mesa, Gunnison, and the surrounding counties present fantastic real estate investment opportunities. Whether you’re looking to build a home on vacant mountain land, a house on the golf course, or a famed Colorado horse ranch, Western Colorado has something for everyone.
To learn more about real estate investment opportunities in Western Colorado, call me at 970-986-2955 or email me at email@example.com.