Have you ever thought about buying investment property in Boise? Perhaps you know of someone who has and you are wondering if it is a good idea or not. Have you heard of the late night infomercials about get rich quick schemes? They make it sounds so easy but reality is usually a lot different. Offering things like buying on pennies on the dollar, “flipping” them overnight, or going from unemployed to making hundreds of thousands over night is very difficult to do. However, if you are looking to build true wealth over time, willing to do the work, and are patient you can be a successful real estate investor.
- Prices are Low. With the current market conditions and high number of distressed sales, you might be able to pick up a nice home in Boise for under the median price of less than $140,000. After putting 20% down, this home could cash flow on a monthly basis with just the rental income covering the mortgage payment, eliminating the stress of being negative each month. This does not even take into account the potential tax savings. You might want to consider multi-unit Boise income properties as well.
- Demand for rentals is high. Vacancy rates in Boise right now for single family homes is less than 5% and for the first time in years, the average rent is starting to increase. Part of this demand is due to the large number of foreclosures. People must live somewhere; many lost their homes and cannot buy a home due to their financial situation. See Idaho foreclosure properties.
- The potential for long-term appreciation is good. Real estate is cyclical and we have been enduring a major market correction. However, historically, real estate does goes up over time and combined with the current existing tax advantages, this is the way to build true wealth. Yes, you may be able to “flip” a property and make a few bucks in the process but for most investors, the risk involved is not worth it. The long-term holding of the property is where wealth will grow.
The time is right to consider buying a Boise investment property. Prices are low, the rental market is strong, and the potential for long-term appreciation is excellent. Unlike the mid 2000’s, an investor usually has to come up with a minimum of 20-25% down payment. This will require a commitment from real estate investors if they require a mortgage. Are you in for the long haul? If yes, buying Boise real estate may be just the opportunity for you.Kevin Hughes