What’s The Best Investment In Real Estate That Everyone Knows Except Us?
We already know that out of staters are coming in to Montana, buying up the houses, buying up the land, and driving up the price so that an average Montanan can't even WISH to buy a home now. We talk about that a lot.
I think I found a MAJOR reason this is happening. I'm absolutely beside myself reading the 2 articles I'm going to tell you about.
I Ran Across This Article First
From 2014 to 2016, Bozeman properties increased in value by $524 million. There’s a tremendous opportunity to both earn some consistent cash flow and collect some excellent returns on your investment. Property values are increasing, and so are the rental rates. This puts investors in a great position to make money off the Bozeman properties they buy right now.
And they say this is a great reason why you'll never have trouble finding a tenant.
Montana State University, for example, gives us an ongoing opportunity to provide student housing. Renting to college students can be lucrative and rewarding.
I highlighted the part about the college students because I feel that is preying on people who are already sinking in debt before they even get into the workforce. So, by all means, jack up rental prices for this "lucrative and rewarding experience". They have to live somewhere, right? Why should they be able to focus just on their studies? Get them out there serving me, then giving their money to me once a month.
Then There's This Article
ListwithClever.com has this to say:
Since it’s home to Montana University, Missoula experiences a constant flow of students searching for properties. Investing in rentals will fetch owners an average of $1,300 per month. Listings show an average price of $350,000 while the median home value is $304,200.
The next paragraph has a bit of a warning:
One disadvantage property investors may experience is selling expensive properties to hometown buyers. The average salary for citizens is $40,730 making some price tags far out of reach.
Here we are suggesting that investors take advantage of college students. BUT, be careful about making it too too nice. People who actually LIVE in Missoula can't afford to buy it when you're sick of the winters.
While the median household income is below the national average at $42,237, homes are valued accordingly at $204,100, which is about $171 per square foot. It’s also a hot rental market where tenants pay an average of $1,200 a month. Homeowners make up 70% of the city, leaving a large portion of the population in search of securing a lease.
Rentdata.org has the average price of a 2 bedroom rental in 2019 in Great Falls, Montana at $777 a month. Head to 2023 and that same 2 bedroom rental is $914 a month. It also states that that rate is 72% higher than other areas.
Don't Get Me Wrong
I get turning a profit on real estate. I get investing for your future. I totally understand. I'm an American. My entire life is driven by capitalism, just like every other American. And this, friend, is capitalism at its most robust.
Isn't There Some Kind Of Law We Can Pass?
I think we need our state government to put a cap on how many homes someone who DOESN'T LIVE IN THIS STATE can be allowed to purchase. If you're a Montanan who lives in the state then you can buy up the whole damn state if you've got the cash.
We Have To Stop This "Rich Guy Playground" Mentality
All over America, the one percenters have decided that this is the cool place to tell their other one percenter friends that they own property in. "Infact, super rich friend, it's a gated community in Bozeman where the locals can't even get in without an invite." Totally made up quote by me.
I Nearly Didn't Give Those Links
I had to fight myself because I didn't want to give them clicks. I think it's important that Montanans find out these kinds of things before it's too late for us. You can feel free to let them know what you think about what they're doing to Montana.
What Can Average Montanans Do?
I'm not sure. I do have a couple of ideas. There are "Move to Montana" groups on Facebook. Go let them know what you think of what they're doing. They APPEAR to be started by realtors, but I'm not sure. I tried, but they kicked me off and blocked me when I told out of staters the truth about the winter. The other thing is go to your local and state leaders and let's get something done. They can't ALL be as rich as Gianforte, Zinke and Rosendale. Those 3 probably think this is great. It's why they moved here in the first place.
Enjoy this gallery of a place that you, a Montanan, need an invite to see. Unless, of course you're serving the elite.