It’s a Great Time to Buy Property in Gallup and McKinley County
Thursday, October 10, 2019
Gallup, New Mexico is a convenient and affordable location within the Southwestern United States. Many businesses and families are choosing to locate here because of area amenities, easy transportation access, job opportunities and the possibility of purchasing a commercial property or private home at a fraction of what it would cost in other Southwestern states like Colorado. Geo Bia, a Gallup Realtor with Coldwell Banker said, “One huge advantage for businesses to locate in Gallup is the location and its proximity to major markets. In addition, Gallup serves as the hub for a huge area of the state and the Navajo Nation. The Navajo Nation including Navajo Enterprises, nearby Navajo Chapters, tribal residents, and rural communities within the vicinity of Gallup, create a large demand for business services, entertainment, healthcare, etc. In addition, travelers and/or tourist rely on Gallup for goods, services, and employment.”
Geo Bia has worked with many families who have moved to Gallup for the plentiful job opportunities. Once here, they find Gallup to be friendly, a convenient location and an affordable community to settle down in. “My clients have told me that they are moving into the area for jobs because it is very affordable to rent and/or own. In fact, in Gallup, it is cheaper to own since interest rates are still at historic lows,” he said.
Gallup, New Mexico’s housing prices are affordable and offer residents the opportunity to purchase their own homes. Bia further explained the importance of home affordability in relation to income. “For housing to truly be affordable, the monthly payment should not exceed 30 percent of a family’s income. In McKinley County, the median household income is $43,598. Our average home price is $152,950. With those numbers, the average family can afford to purchase a home in the county, while paying less than 30 percent of their income towards the mortgage.” The affordability in Gallup and McKinley County serves as a stark contrast to cities like Denver, Colorado Springs or Santa Fe where home values have skyrocketed, and many people have found that they can no longer afford to purchase a home.
For those looking to rent, Gallup and McKinley County offers many affordable options. When asked about current rental inventory, Bia said, “Rent is quite affordable in New Mexico and McKinley County. According to the New Mexico Mortgage Finance Authority report, most renters in McKinley County can afford the median rental rate of $627 per month. In addition, the percentage of renters who have enough money for median-priced homes is a respectable measure of affordability due to the fact that most renters eventually purchase a home – a trend that we are seeing on a frequent basis.”
Opportunities for Real Estate Investors in McKinley County
There are numerous opportunities for real estate investors looking to invest in Gallup and McKinley County. Our growing workforce can afford to purchase homes and there is need for more inventory. On a large scale, this creates opportunities for housing and mixed-use developments. In addition, smaller real estate investors can benefit from purchasing older homes, making renovations and selling them for profit.
“Flipping homes as an investment represents a huge opportunity for investors. The majority of the homes in Gallup were built in the 1940’s; therefore, rigorous rehabilitation of older homes is critical. Investors have the opportunity to purchase these homes and use loans that are specifically designed for rehabilitating them. For example, the FHA 203k loan allows you to borrow money using only one loan for both home improvement and a home purchase. They are guaranteed by the FHA which means lenders take less risk when offering the loan and often are insured by a governmental agency to make the risk more acceptable to the lender. A rehab loan is definitely a great way to revitalize neighborhoods and purchase properties as an investor,” said Bia. “Recently, a property sold on the Northside of town where the investor utilized an FHA 203k loan,” he continued. “The investor purchased the property for $60,000 and wrapped an additional $30,000 into the loan for rehabilitation, for a total of $90,000. Afterwards, the home appraised for $140,000, giving them a $50,000 profit rather quickly. In this way, homeownership can help families to build wealth and stability.”
Families, Businesses and Investors Welcome
Gallup and McKinley County are welcoming to new families, businesses and investors looking to purchase properties, make investments and contribute to this growing community. The benefits of doing so are enormous.
Families moving here find an affordable environment in which to build their own American Dream.
Businesses find that Gallup offers a convenient place to headquarter, manufacture products and distribute them throughout the country. Plus, the affordable real estate costs can help to reduce expenses contributing to business profitability.
Investors find it easy to purchase properties, renovate them and turn a profit, given the growth in Gallup’s workforce and the high demand for housing. Investors with the capital to build new housing developments also find a ready market for newer properties.
In Gallup, opportunities abound. We invite you to learn more about our community, contact us with questions and to discover why Gallup is a wise investment.