Home Buying in Bozeman>Question Details

Mike Connell, Other/Just Looking in Minnesota

Considering purchasing a condo in Bozeman in 4 - 5 years. Any wisdom in purchasing sooner as an investment property? $150 - $250 range.

Asked by Mike Connell, Minnesota Fri Aug 31, 2012

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Sam Quasuittuq’s answer
Looked at Bozeman about five years ago - it was overpriced then and still is. When the next round of derivatives comes - the prices will drip even further. Pretty soon the town will wake up and start re-assessing those homes and come up with more realistic taxes.

That's why I bought in Wyoming where taxes are relatively cheap compared to Montana.
0 votes Thank Flag Link Wed Oct 31, 2012
Mike,

I see lots of great agent responses here to your question about purchasing a property in Bozeman! Did they inspire you to move forward with your purchase?

As so many others have highlighted for you, this is an excellent time to invest in Bozeman's market; especially if you have some flexibility. Current interest rates are hovering around 3.25-4.25%. If you were able to purchase of the great condo's or townhomes currently listed in our market you would have a competitive interest rate that would provide the opportunity for a monthly cash return.

In our market we usually see a 5-7% return on rentals. When the interest rates are higher it is harder to sell a customer on the advantages of investing as they are relying on the home to appreciate to see a return. With the current interest rates, not only will you be buying in an exceedingly competitive market, but you will also see a monthly cash return.

As a side note, 50% of homes listed in Bozeman are selling in 30 days or less when priced at or below $250,000. Hopefully that will give you a sense of the nature of our current market.

Good luck in your search! I would love to be of assistance if you do decide to invest.
0 votes Thank Flag Link Wed Oct 31, 2012
0 votes Thank Flag Link Wed Sep 5, 2012
I would agree that it is a good time to buy in Bozeman, but your pricing seems on the high end for a condo. It depends on what you are looking for, but if you intend to rent, think about whether you want students, a family or vacation rental. For a student rental you can probably find something on that low end, looking near the MSU campus for a condo that is walking/biking distance to school and town.

For reasonable pricing on a family rental you might try the area near Emily Dickinson or Hyalite School. For a vacation rental think close to downtown, easy access to Bridger Bowl and Yellowstone--again either near downtown or towards Bridger Canyon.

There seems to be quite an inventory right now, so don't settle until you really get to know the local market. Inventory is still high, but the better properties aren't sitting as long.
0 votes Thank Flag Link Wed Sep 5, 2012
Mike,
I think the market here has bottomed out but is still climbing out. Now would be a good time to buy if you can stand to have some rental company manage it for income until you want to use it yourself. I don't think interest rates will be as low in 4 to 5 years as they are now.
Tony
0 votes Thank Flag Link Fri Aug 31, 2012
Have you considered Whitefish, MT? Google: Whitefish Chamber, Whitefish Convention and Visitors' Bureau, Glacier National Park and finally, Whitefish Real Estate. Mountain condos, log cabins, homes in town or out. Four seasons. #22 ski resort, top 50 golf destinations, blue ribbon trout streams, hiking, photography, wildlife, white water rafting, snowmobiling, hunting, great shoppes, top restaurants, horse back riding and mountain views that lean you back. Lakes, rives. More water than anyone. One of our neighbors is the largest freshwater lake west of the Mississippi. Canada, one hour. Fresh air? We sell it to the rest of Montana. Don McLean wrote: "Starry, Starry Night." Yep, that was about us. Not too far from Bozeman. Makes for a nice ride.
0 votes Thank Flag Link Fri Aug 31, 2012
Mike: It is sort of a unique time in the Bozeman, Montana real estate market. Local prices areconsiderably lower than what they were 3-4 years ago, interest rates might go lower but not by very much, and the Bozeman rental market has right around a 3% vacancy rate which has pushed rents up.

Properties that are well located and in good condition are renting in a matter of days in the current market. I am hearing almost daily from people that they can not find rentals. I would be happy to visit with you further regarding other reasons why I believe that waiting 4-5 years to by might be a mistake. With the time/value of money you should strike while the iron is hot!
0 votes Thank Flag Link Fri Aug 31, 2012
Yes. By purchasing now you get the opportunity to purchase at the lowest price, the best interest rate we have ever seen in my 34 years as a full time agent, a tenant to pay off part of the principal for you, and great tax benefits while you wait to move in.

Lloyd Mandeville
Prudential Montana Real Estate
1925 N. 22nd, Suite 201
Bozeman, MT 59718
406-580-9566 cell
0 votes Thank Flag Link Fri Aug 31, 2012
Purchasing now rather than later would ensure a low interest rate, and potentially big savings on the purchase price. Our market has been on an upward trend for about 6 months, and as long as our economy continues to improve purchasing now could give you a greater return on your investment. Rental rates are very high in Bozeman right now. Hope this helps! Feel free to call if you would like me to elaborate.

Tamara Williams
Re/max Realty Group
406-223-6823
0 votes Thank Flag Link Fri Aug 31, 2012
Mike,

There is no better time to make an investment in real estate than right now. It's anyone's guess what interest rates, availability of inventory or prices of quality condos will be years from now. What's even better news for you is that there currently appears to be a rental shortage in Bozeman -- especially for nicer 3/2 rentals. Let me know how I can help! Dianne Click, Bozeman Broker Group
0 votes Thank Flag Link Fri Aug 31, 2012
Mike,

The prices in Bozeman are still near the bottom of the market. That coupled with interest rates near historic lows makes right now an amazing time to buy in Bozeman. If you were to purchase sooner then later you could either do yearly rentals or VRBO weekly rentals to help you carry the property until you need to use it. On a different note what part of MN do you hail from. I moved to Bozeman 18 years ago from the Twin Cities. Best of luck on your hunt.

Ryan Kirt
Realty Executives of Gallatin Valley
REALTOR, ABR, SFR
406-223-2880
0 votes Thank Flag Link Fri Aug 31, 2012
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