Investing in College Town Real Estate in Washington, D.C.
It is not uncommon to find real estate investors who specifically target college towns when buying rental property. This comes as no surprise considering the many benefits that college towns have to offer such as a steady flow of students who need to find housing nearby their campus. If you are planning to invest in Washington D.C. real estate, consider investing in rental property located near Georgetown University.
Investors will often find that one of the many benefits of buying Washington D.C. real estate near Georgetown is that they can charge higher than average rental rates. Real estate in Washington D.C. that is located near Georgetown University costs an average of $2,637 per month to rent according to Forbes magazine. Along with the high rental rates, college towns typically offer lower vacancy rates than other rental markets. Because the housing supply is often less than the demand, you have a better chance of finding renters in a college town compared to alternative locations. This basic economic principle of supply and demand also accounts for why rental rates are higher in college towns. In addition to these benefits, an investor who chooses to invest in Washington DC real estate can likely expect to benefit from depreciation write-offs and capital gains over the long run.
If you plan to invest in Washington, D.C. real estate and are convinced that investing in a college town will be a lucrative choice for you, then Georgetown may be your best bet. Founded back in 1751, Georgetown is a historic district located in northwest Washington, D.C. and is home to the main campus of Georgetown University. In addition to the university, families with young children are served by the District of Columbia Public Schools as well as several private preparatory schools such as Georgetown Visitation Preparatory School and Georgetown Day School.
Washington, D.C. real estate located within the Georgetown neighborhood is highly sought after because of its proximity to the main campus of Georgetown University as well as its easy commute to the center of Washington D.C. The average home listing price as of 2012 is $395,000 in Georgetown. Although many of the single family homes are historic properties that date back more than a century, they are well-maintained and most properties have actually been completely modernized/renovated
Rental prices for real estate in Washington, D.C. that is located in the Georgetown area tend to be high but is also in high demand because (as mentioned before) the neighborhood borders the University. What's more, many of the renters in Georgetown are often faculty or graduate students from the University, making them a bit older and typically more responsible. Along with being home to many politicians and other wealthy Washington, D.C. residents, Georgetown also manages to contain a mix of both historic landmarks and swanky properties like the Ritz-Carlton hotel. Because of its desirable location and history, real estate values in Georgetown have steadily increased and will likely do so for the foreseeable future.