Kansas City is gaining wide-spread attention as a great place to invest
Part of my job as the CEO of an established turnkey company in Kansas City is setting the vision for our business. To do this well, I have to be looking at the big picture, the overarching trends, the high-level view. I take this seriously. I want to earn my seat every day, just like my team members earn theirs. And so, I read, talk with others, and listen to everything I can get my hands on about business, investing, and real estate.
Knowing this, it is probably no surprise to you what I immediately thought of after Think Realty asked me to write this article. I thought of another article I read recently. What you probably won’t have guessed is that the article I thought of actually came from a digital news source produced in the Middle East.
What does a digital news source in the Middle East have to do with Kansas City real estate, you may be wondering? Well, I thought the exact same thing when my “Kansas City real estate” Google alert delivered this hit from International Media Investments: “Despite Pandemic and Slowing Economy, US Property Market Remains Attractive to Investors.”
The U.S. Property Market they are referring to? Kansas City.
In many respects, Kansas City has flown under the national radar as far as real estate markets go. Because I live and run my turnkey business here, I have a different perspective. But, for most other Americans, Kansas City is painted as a cow town with little interest. I don’t know as much about the global perspective of Kansas City. Prior to reading this article, I figured the world MIGHT know about Kansas City’s football team, the reigning Super Bowl champs. But, I highly doubted the rest of the world even knew Kansas City existed, let alone recognized it as a great market for real estate.
Since the secret is apparently out globally, here is why we at Bridge Turnkey (and International Media Investments) like Kansas City so much:
Historically the Kansas City market has been relatively stable — even in spite of massive outside economic influences like the financial collapse of 2008-2009. Our steady 2.3 percent property appreciation reflects our ability to maintain upward trends without succumbing to huge highs and lows like other markets may see.
RELATIVELY LOW PROPERTY TAXES
Property taxes are something every real estate investor should be taking note of. Because they are out of your control, it is important to understand the trends around property taxes in the areas you buy. In Kansas City, property taxes land within the preferred rate of 1 to 1.5 percent of the value of the home.
DIVERSE EMPLOYMENT OPPORTUNITIES
Investing in a city that is attracting new residents and one that isn’t too dependent on any one industry is paramount to the success of a buy–and–hold real estate investor. Kansas City boasts both: diverse employment opportunities with a variety of big corporate players (Garmin, Hallmark, Sprint, and H&R Block to name a few) and a steadily growing workforce drawn to the city’s low cost of living.
How has Kansas City fared during the national pandemic?
A lot of people had concerns about how the real estate markets would respond to the global pandemic of COVID-19. Though the reports vary from market to market, the one from Kansas City has certainly drawn some attention. Our real estate market continues to thrive. We are experiencing huge retail and rental demand with properties selling quickly and renting quickly.
The conditions that make Kansas City an attractive place to invest are the same conditions that make it less affected in a crisis than other areas of the country. Nothing is for certain, of course, and we had our share of concern in the initial days of the pandemic’s emergence. But, now, we can look back and say with confidence that April and May of 2020 were two of the best months our business has ever had. EVER.
Inventory in Kansas City is tight right now. It is a seller’s market, for sure. We are having to be creative and work hard to find the deals that will work for us and for our clients. But, property values continue to rise, investors continue to invest, and we are as pumped as ever to keep providing incredible rental properties to clients all over the world who want to invest in our great city.
Nathan Brooks is the CEO of Bridge Turnkey Investments, a Kansas City-based company renovating and selling 150 turnkey properties every year. He is an active investor, speaker, and educator — teaching investors about real estate as part of his passion for helping other people. He resides in Kansas City with his wife and two children where he enjoys the outdoors, MMA, and coming up with new business ideas to crush.