If you are considering investing in real estate in Boise, Idaho, you can pat yourself for deciding right. Finding the perfect investment opportunity is equivalent to spotting sleeper opportunities that will bring in high returns in the future. When you get ready to invest in real estate, it is essential to narrow down locations where the demand is growing, yet it isn’t too hot at the moment. That being said, investing in Boise at this time is the right thing to do. With the COVID-19 taking center stage, real estate prices are going down. This is your best time to invest and by doing so, you can avoid getting burned by paying top market value.
About Boise
Boise is the capital of Idaho. It is located in south-western Idaho along the Boise River. It has a population of around 228,790 as of 2018 and is a fast-growing city. Interestingly, the Boise housing market was ranked as number one in the country by the metro level housing forecast for 2020 carried out by Realtor.com. They created the rank list based on factors like yearly percentage growth in home sales and prices expected in 2020.
Some Stats To Help
If you are still on the fence about investing in Boise, it is time to learn a few interesting facts about this quaint up and coming city in Idaho. Boise has plenty to offer other than potatoes. It boasts of a population of over 200,000 people. This is without including the people living in the metro area. With a growing demand for affordable houses in Boise, the prices have also gradually started rising in and around the city. In fact, the last month alone bore witness to a growth of 3% in the real estate appreciation rates. If the growing rate stays steady this could go up to almost 12% to 16%. It’s no wonder that the experts in the real estate industry have earmarked Boise as the next hotspot for investments.
Why Is Boise a Hot Place For Real Estate Investment?
Several factors contribute to make Boise the next hot spot for real estate investments. They include:
- Strong population growth
- Low unemployment rate at around 3.5%
- Low cost of doing business
- Low Taxes
- Excellent quality of life
- High-quality schools
- Job growth 2-3 times national average
- Ranked #6 by Forbes for most job growth.
With benefits like these, it’s no wonder that Boise currently has more qualified buyers and fewer homes for sale on the market. With a strong market basics backup, Boise real estate market is targeted to continue growing for the next three years.
Key Factors To Examine Before Investing In Real Estate
Investing in property is, after all, no small game. So before you go ahead and invest in Boise real estate, here are a few things you need to be aware of to avoid common real estate mistakes:
Take A Closer Look At The Metrics
When you have a property on the table for investment, it is prudent to evaluate its ability to generate wealth. According to the experts at Stewart Realty LLC, you need to take into account several factors like vacancy rates, historical growth trends, nearby employment, and demographics, population growth. By arming yourself with this knowledge, you are in a better position to determine whether the house is suitable for families, young professionals, or retirees.
Rent Survey
Any property that you invest in brings in returns in the form of rent. So it is a good idea to conduct a rent survey in the neighborhood on Boise that you are interested in. A rent survey will give you an indication of whether there is real potential in the property. Many first time investors make the mistake of not doing a rent survey. But then they bear the burden of investing in a property that offers low returns. You can avoid falling into this trap by seeing if there is a demand for renting a property, like the one you want to invest in.
Have the Property Inspected
Before investing in any real estate, located anywhere in the world, you need to get it inspected by professionals. This includes checking for pests, mold, condition of the appliances, condition of the electrical and plumbing system. This inspection also includes checking whether the building meets the local building codes. Hiring a licensed building inspector will result in a detailed report about the condition of the building as well as the necessary repairs and upgrades. You can make the final decision based on this report.
Assemble a Team
Every successful real estate investor has a team of experienced professionals working with them. If you are planning on building your real estate portfolio, you would need some good hands. It is recommended to include a real estate agent, an honest appraiser, a real estate attorney, and a lender on the team. Since buildings often require necessary upgrades and repair, you will need some more personnel. You can add a painter, a plumber, an HVAC contractor, an electrician, and other professionals on your team. You can also take the shortcut by hiring a property management company to take care of your real estate property.
Keep An Eye On Cash Flow
Nothing can eat through cash faster than necessary maintenance, renovation, and repairs on the property. You need to keep a contingency fund aside in case the costs cross the budget. If you are planning to hire a property manager, you will need to include their fees as well within the cash flow.
Keep The Exit Strategy Ready
Many people find out that investing in a property and maintaining it are two different things. Maintaining a property includes repair and renovation, which can eat into the cash flow easily. This is why it is essential to have an exit strategy while investing in real estate.
Once you have mastered these factors, you will find that investing in a real estate property in Boise is easy. It can fetch you more returns in the near future. With the way the market is leaning, it is wise to invest as soon as possible. Boise offers decent return values on your investment without having to pay through your nose. The low property taxes in Boise are just cherry on the topping. Boise is poised for fast growth, take advantage of this COVID-19 opportunity to improve your real estate portfolio.
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