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Invest in Real Estate

Are you thinking about investing in Steamboat Springs real estate? It seems like anywhere you look around Steamboat Springs these days there is significant construction. In addition to the myriad of commercial construction throughout town, such as the recent opening of the roller coaster on the mountain, there are new housing developments cropping up everywhere with new townhomes and single-family homes going up almost overnight. This constant development in Steamboat Springs means that people and businesses are investing here.

There has been an influx of new restaurants and businesses that have sprouted up in recent years, and a vast amount of improvements and upgrades made to the famous ski-town USA ski basin. With the recent purchase of Intrawest Resort Holdings by a joint venture of KSL Capital Partners and Henry Crown and Company, it is safe to say that new real estate opportunities are on the way for Steamboat Springs and that investing in Steamboat Springs is on the upswing. Please click here to search properties for sale in Steamboat Springs.

Know Before You Buy

Anytime you are thinking about purchasing real estate, whether it is a small second home, condo or a larger fulltime single-family residence, you need to think about a few things before you start your house hunting.

While investing in real estate in Steamboat Springs may seem overwhelming, it is important to keep these things in mind. The top three key things to consider when purchasing a home in Steamboat are: value, location, and timing. All three of these elements affect one another when considering a single property and can overlap to make your home a good investment or a great investment.

Value

One of the first things to consider when purchasing real estate in Steamboat is value. It is important to consider your return on investment (ROI). Examining the ROI of a home will help you determine IF the property you are selecting will hold its value over the years to come or if it will decrease in value or increase in value.

In conjunction with this, you must consider what will affect the value of the home you are looking to purchase or invest in because that will help you determine why the home will hold or increase its value over time.

For example, a home purchased on the mountain years ago may have more value today due to the recent upgrades at the mountain itself and the purchase of the mountain by Aspen, making it a member of an elite group of ski-focused mountain towns.

Question to Ask: Will the home I am looking to purchase increase or decrease in value over time, or will it remain the same? What sort of return can I expect on my investment when investing in Steamboat Springs real estate?

Location

Most real estate agents would argue that the most important thing when picking your real estate property is to look at location, location, location.

With various neighborhoods throughout Steamboat, all offering proximity to different Steamboat attractions, where you live is of paramount importance. For some people, living on the mountain and being close to the bike and ski resort is of the utmost importance while other people prefer to live closer to town and the restaurants and shops. Your investment in purchasing a real estate property in Steamboat Springs will definitely be affected by where you want the property to be located.

Timing

Just as much as value and location affect your home, so too is the timing of when you purchase your home.

How will the timing of your purchase affect the appreciating value of the property you buy? Will you make an investment now that will blossom in years to come into a lucrative rental property?

Value of the Property

When you choose to invest in a home, townhome, or condominium in Steamboat Springs, the value of the property will increase and decrease based on the real estate market, but there are ways you can help yourself to ensure that your investment is a good one with ample returns.

For example, many people rent out their properties in order to offset the cost of their mortgage. Many people have invested in a second home here in Steamboat Springs and are not in-residence all year long, so rather than having a large house sit empty for a portion of the year, they rent their property out to vacationers when they are not there.

Other people here have large homes and they rent out a room or two throughout the year to tourists looking for options other than hotels in order to supplement their income and help pay the costs of their mortgage.

I spoke with Amy who lives in a large 4-bedroom house off of Fish Creek Falls Road about why she chooses to rent out rooms in her home through Airbnb and this is what she had to say.

“I started doing rentals in 2015 because I am single and had some bad experiences with roommates. I love that I get to supplement my income and help offset my mortgage costs by earning some extra money through room rentals. Airbnb is really easy to use and you can block out dates, adjust pricing, and accept or decline guests all from an app on your phone. Also, there is a helpful support staff only one phone call away if you need anything.”

In 2016, Amy’s busiest month was June and February was second, and in 2017, February and March were her busiest months sometimes grossing her over $3,000 just from renting out two rooms on the bottom floor of her home.

Amy has taken the money she has made from Airbnb and been able to make upgrades to her home, further investing in her property.

The key lessons learned that Amy would share with others who are thinking of renting out rooms or their property are:

  1. It’s more work than you think (cleaning and preparing the rooms, getting beds made, laundry etc.), but once the guests arrive it is smooth sailing and worth it in the end when you see how much extra money you have made in a month.
  2. Guests rarely arrive on time, so be prepared to be flexible.
  3. If a guest is not your cup of tea, just smile, because they will be gone in a few days.

As you consider investing in a property in Steamboat Springs make sure you are considering the key elements of: value, location, and timing and that you are choosing a real estate agent, such as Sunny Brstina of Steamboat Sotheby’s, who knows the area.

10+ yrs selling/buying/ investing in Real Estate

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