Is now a good time to buy multi-family in Boise?
Many investors are rushing to multi-family housing in the Boise area and for good reason. The reasons are as unique as the investors but the fact that prices are low and rapidly increasing are pivotal trends in the market. Prices are off peak prices by nearly 30% so bargains are still out there and one significant strategy in investing in purchasing at the right price at the right time. Waiting to purchase after the price has peaked will cause an investor to miss out on a lot of appreciation they would otherwise have capitalized on.
Another major factor in buying multi-family in Boise is the fact that there are a very high number of renters in this market. The majority of people in the Boise area will be renters, and possibly long term renters at that. Having a plentiful supply of renters the multi-family is key to investor success.
What is the long term prognosis of multi-family in Boise?
The major factor in buying a house or investing hard earned cash has always been and will always be loan rates. Most investors are aware that they will need at least 20% down to get into a loan and the low rates maximize profits. The low interest rates of today will make the long term multi-family market attractive to any observant investor.
Another factor which indicates the health of the Boise multi-family market is the fact that rent rates are actually increasing. Many people expect rent rates to go down since the real estate market is recovering, but there is one significant factor, which we will discuss at the end of the article, which will keep rent rates going up.
What is a good way to rate potential investment properties in Boise?
The most reliable way to predict the direction of a market is to consider local market trends, such as localized development trends. If the property you are thinking of purchasing has a great capitalization rate, that is always a plus, but is not indicative of the overall trend of the area. As new development occurs in certain areas, it can cause and even increase valuable traits such as cap rate and appreciation. Knowing where this development is occurring most frequently and investing in a proactive and predictive manner is key. Capitalization rate is and has always been a very reliable way to evaluate a property for its investment potential but utilizing the local development trends is a must for the long term.
For more information on investing in multi-family housing in Boise, email me at firstname.lastname@example.org.