• Patrick Soukup

Fort Collins Vs Windsor Investment

A community with a rich history but always happy staying small. Until now. Windsor is a force to deal with. Windsor has nearly as many building permits issued as Fort Collins, Loveland, Wellington and Timnath combined. Commercial building is flocking to Windsor and the community is developing rapidly.


Just recently, you could call it a bedroom community. Somewhere an individual could go while remaining close to Fort Collins but obtain more affordable housing. While that still remains true, it is not nearly as good of a deal as it used to be. Prices for the homes have increased to be nearly on par with Fort Collins. That being said, there is still value to be had when you look at what you are getting for your $$$s.


A look at the last 40 days of sales in Fort Collins and Windsor of houses that sold between $300,000 and $430,000 here are the numbers:


As you can see, of course, there are more homes that sold in Fort Collins than in Windsor. There is a bit of a premium to buy in Windsor at this price point. BUT, look at the square footage, bedrooms and year built. Yes, you can get a home in Fort Collins under $430,000, and there are quite a few that you can find for under $375,000. You are buying location and paying for it in less home, less bedrooms and older homes.


But we want to look at what is the "better" investment. Fort Collins or Windsor.


When looking at it as an investment, here are some numbers provided by Rentrange.com:

Not bad! For under $400,000 you could potentially get a rental amount of around $2,250/Month. That's what the extra bedroom and square footage can do for you.


Here is some info on Fort Collins:

There are still homes in Fort Collins for under $400,000. Renters still need and want there space. Due to the desireablility of Fort Collins and the value its name has on your address, you are buying and older home with less square footage and 1 less bedroom. That is important to renters, meaning you aren't going to be able to charge the same as you could if you had a house with 1,000 more square feet and an extra bedroom.


You are going to get more $/Ft for you rental in Fort Collins, that is true. BUT, you are going to get more square footage for your $ on the purchase in Windsor. On top of that, the age of the home you are buying is going to be almost 35 years newer WITH an additional bedroom.


Renters are always going to pay more for more square footage and more bedrooms.


Things to consider in addition to just rent/foot and price of purchase/foot would be:

-Basic economics of the community AKA who are the employers

-Vacancy rates

-Travel/Commute

-Amenities

-Age of Home = Maintenance needing to be done is less for younger homes


Fort Collins is still a safer bet than Windsor in the sense that our economy is bigger, we have more of what people want in terms of commercial options and our vacancy has a longer history of extreme lows. If you are CONCERNED about the preservation of capital and are willing to take a little hit on the rent, Fort Collins is still the safer bet. But, if you have faith in NORTHERN COLORADO and the growth and future of Windsor, Windsor gives you a better yield.


Overall, if you have $400,000 home budget to invest and are deciding whether to invest in Fort Collins or Windsor, it seems obvious, you should invest in Windsor if you are looking for yield.

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