Is Real Estate a Good Investment in KC? Of Course!
Maybe you’ve stayed in a few Airbnb rentals, or you’ve watched a friend as they manage an apartment building. Maybe you have your eye on a little bungalow that would make the perfect long-term rental property. If you have money to invest, you may be asking: is real estate a good investment? And specifically, is it a good investment in Kansas City?
Image by jotoya from Pixabay
In the past five plus years, the investor market has largely grown in Kansas City. There are many reasons for this! A couple years ago, Time named Kansas City one of the top 10 housing markets for buyers to consider. And we say, a top housing market for investors to consider; here’s why:
- Renters. As we are all well aware of now, there has been a price surge in Kansas City homes the past few years. Because of this, many people aren’t in the financial place to buy a home because of lack of down payment or because they lack enough capital to be competitive in a seller’s market. This means, renters.
- Population Growth. In the past decade, Kansas City has grown by 20%. (Roofstock tells us that “Suburbs to the north of Kansas City are among the fastest-growing, with Platte County growing by nearly 20% and the population of Clay County increasing by 14%.” Ahem – we happen to specialize in the Northland, but we digress.)
- Large Corporations Headquartered in KC. Hallmark Cards, T-Mobile, Garmin, Dairy Farmers of America, Federal Reserve Bank…we could go on. These companies aren’t going anywhere; they’re all growing, and this adds to the bullet above – we’re growing. And people are moving from all over to take these jobs. When that’s the case, many will choose to rent until they get to know the KC Metro and find out which part of town they’d like to settle down in.
- Home Value Growth. Related to bullet #1, this also means you can charge more for rent and, hopefully, the caliber of renters is higher.
When it comes to logistics, there are a few other things to consider when asking “Is real estate a good investment?”
- Would you enjoy the management and maintenance coordination that comes with owning a rental property or should that be outsourced?
- How will that impact your profit on the rental if you do?
- Before making a real estate investment, get to know the market. You’ll make a smarter purchase and be happier with your long-term returns if you do research first and can make a confident investment.
- Think about short-term rentals. If you want to capitalize on the tourism that draws visitors to Kansas City every year, you may want to check out the possibility of a rental that could be listed on Airbnb or vrbo.com. The only catch is that there are new ordinances in Kansas City that require you to register your property as such, so take the time to do the paperwork.
- Check out individual neighborhoods. Research a specific location.
Image by Roy Harryman from Pixabay
People are flocking to Kansas City. Maybe it’s the barbecue. Maybe it’s the Chiefs. Maybe it’s the awesome. People want to live in Kansas City. So, are you ready to check some rental properties? Even if you’re not sure where to begin, the team at Dani Beyer Real Estate is ready with insight and recommendations for your investments. Contact us for more information on rental real estate.