Investing in Rental Property in Durham, NC
Despite the real estate crash that accompanied the recent national recession, real estate has long been considered a wise, and relatively safe, investment when approached using a long-term planning strategy. Although real estate, like most investments, will go through rough patches, most real estate will appreciate over the long-run. If you are considering an investment in real estate in Durham, North Carolina, you might benefit from the advantages that typically accompany investments in real estate located in a college town.
Although most medium to large metropolitan areas include at least one institute of higher learning, some towns are known as “college towns” because they include numerous colleges/universities and/or because the town’s economy and community are focused around the colleges/universities. Durham is just such a town. With a population of just over 200,000, Durham is big enough to be considered a respectable city but not large enough to be considered a bustling metropolis. Both Duke University and North Carolina Central University call Durham home. In addition, Durham is one of the three “points” in the “Research Triangle”, a geographic area, which includes North Carolina State University, Duke University, University of North Carolina at Chapel Hill, and the cities of Raleigh, Durham, and Chapel Hill respectively. The Research Triangle has historically been associated with academia and the technology companies that also call the area home.
For an investor, Durham real estate offers many excellent opportunities because of its status as a college town. Typically, an investor in real estate is looking for both a short-term profit and a long-term gain. This means that you need to find real estate in Durham, North Carolina that will attract responsible and dependable renters and that will appreciate at a respectable rate over time. One benefit to investing in Durham real estate is that you will likely have a much lower vacancy rate here than in many other areas. Between the continual flow of faculty and students, there is a much higher chance of keeping your rental occupied than in a town without such a large pool of potential renters. Moreover, these are generally financially responsible renters (or at least the parents are in the case of students) which lowers your risk factor. Finally, an established neighborhood near a university is unlikely to change in the future, meaning your property will likely appreciate at a predictable rate.
While Durham (especially the Research Triangle area) is known as a college town, it is also an historic city. An investor can find beautiful antebellum homes among Durham real estate for sale. Many of the larger single family homes near either of the main universities have been converted into multi-family homes and apartments; however, single family homes that have not succumbed to conversion can still be found. A two bedroom, two bath home in Durham can be purchased for an average of around $200,000 as of September 2013. Larger, multi-family homes close to campus will cost you considerably more but the potential return on your investment is much more as well.
If you plan to invest in real estate in Durham, North Carolina in the near future you will likely be making a wise long-term investment.