A Comprehensive Guide To Real Estate Investing In Spokane
Have you been considering buying an investment property in Spokane, WA? You can expand your sources of income by investing in rental property. It might be the channel to grow your wealth over a prolonged period.
Spokane is experiencing substantial gains when it comes to real estate investors. Being an affordable place providing great life quality, it’s among the best options for property investment. Well-established companies are also establishing their presence in Spokane, e.g., Amazon. That means that this area’s job market will expand. Additionally, local businesses are thriving, with more restaurants, bars, and independent shops opening here.
Any new investor should have the goal of maximizing their real estate investments to create more income. And although many people already know that rental homes can build your wealth significantly, you must take the time to learn how. Therefore, the more you learn, the more you could use that information in your rental investment.
This article will begin with the fundamentals of real estate investing in Spokane. You will also find recommendations to apply such that you get to enjoy the advantages that accompany owning a rental property.
Spokane Housing Market
Spokane has always been described as the gateway to the American West, and it has evolved from the quiet rail town it was into a vibrant domestic city. It’s found in Spokane County, which is in eastern Washington, U.S. Spokane has preserved a peaceful and serene ambiance despite expanding to provide many opportunities for its residents. For more info on the health of Spokane’s Housing Marketing check out this guide.
Many people living in today’s crowded cities, such as Portland or Seattle, prefer moving to Spokane. The primary reason for such consideration is the presence of traffic-free commutes. The global COVID-19 pandemic has also turned life upside-down. However, Spokane has specifically gained from the pandemic with a significant rise in value after the outbreak.
You might be wondering how this is possible? Well, with numerous workers having the option of working from their home’s comfort because of the pandemic, people are relocating in considerable numbers to do away with the high standards of living in cities and the high population density. Most people are often attracted to Spokane primarily because of the proximity to their offices. The good news is that this is no longer a limiting factor for individuals working from home.
Why Invest in Spokane Real Estate?
Slowly but surely, the overall Spokane Real Estate Market exceeds Seattle and San Francisco when it comes to growth. Research has also shown that Spokane is one of the major cities that real estate investors need to keep an eye on. And although the pandemic has redefined the ideal location to live in, one of the best choices to invest in is in the Spokane Real Estate market.
Here are several reasons you should consider investing in Spokane real estate:
1. Strong Appreciation Rate
You should know that there is a substantial increase in the appreciation rate of investment properties in Spokane. Some of the past years have experienced an appreciation rate exceeding 10%. For example, a $300,000 home got an extra value of over $30,000.
That means that as an investor, you’ll need to act as soon as possible since there is no reason to expect this upwards trend to stop in this decade. What’s more, your well-timed investment may ultimately experience substantial ROI.
2. Limited Supply of Housing
Isolated on the West Coast, Spokane has a geographical position that limits the possibility of housing construction. Because the mountains press against the ocean, you have limited grounds to play.
Geographic factors partially explain the quick property appreciation of cities such as Portland and Spokane. More restrictions are because of designated wilderness areas as well as national parks situated near the cities. Fortunately, this is exciting for real estate investors since there’s solid potential for constant appreciation.
3. Comparatively Low Tax Rates
Quite frankly, the West Coast cities tend to be notorious when it comes to high tax rates. For example, California may use up to 11% of your income. Washington’s peak tax rate is a tiny bit over 9%, making it a significant difference long-term.
Apart from the income tax rate, many other factors facilitate the investment potential of Spokane, WA. Generally speaking, the property tax rate is considerably lower compared to the national average – this is 1.1% vs. 1.2% of the assessed value of the rental property.
4. More Affordable Housing Than in Seattle or California
Typically, the real estate market in California features strong demand and extremely high costs. Diversifying your real estate investment portfolio is much simpler in Spokane. You can actually purchase two Spokane properties for the cost of one in the state of California. That is the reason more investors are coming to places like Spokane.
It applies to Seattle as well. In comparison, Spokane real estate is much cheaper compared to similar Seattle properties. That means that you can buy a rental property for a third of Seattle’s cost while demanding rent that is only half of Seattle’s average. That is proportionally a substantial increase in returns.
5. Landlord-Friendly Real Estate Market
Unlike California, the entire Washington state has a landlord-friendly real estate market. For example, you will not have a cap when it comes to security deposits, and you are permitted to increase the rent provided you adhere to the laws.
6. Many Neighbors to Choose From
Real estate investing in Spokane implies that you have a range of areas to choose from. Spokane might not be as big as Seattle. However, there are still many unique communities in that area, such as High Drive, Peaceful Valley, University District, Audubon/Downriver, Vinegar Flats, West Central/ Kendall Yards, and South Hill.
Although the market is really hot and generally comes with some competition, Spokane provides the best return to investors and home sellers. The primary reason behind this is the rising demand for houses in that area. There are also plenty of other reasons why most people are planning to relocate to Spokane.
At least for the time being, Spokane’s housing market might be confidently regarded as a seller’s market. Individuals owning property and real estate investors will gain from the situation as is. If you are considering downsizing or sell your Spokane home fast, this is the market for you. Rich King Real Estate can help you through this process. It would be best to grab this opportunity while it lasts!
Is it a good time to buy a house in Spokane?
It’s worth noting that mortgage interest rates in Spokane are significantly low at the moment. Quite frankly, they are close to all-time lows. As a result, now is an ideal time to purchase a house in Spokane to experience substantial savings in terms of interest payments on your mortgage. Although rates are still anticipated to remain low all year, there is a high likelihood that they might not be as low as they’re nowadays.Using this fact, along with the expectation that there will be a steady increase in home prices makes it a prudent choice to buy now instead of waiting.
Is Spokane an excellent rental market?
The real estate investing community in Spokane generally appears to be positioned to gain from increasing demand. According to Apartment List, Spokane’s rents have significantly increased compared to the nation’s 100 largest cities. Since Spokane has a price-to-rent ratio of 20.33, then the rental property owners will get good rental demand because costs are significantly high. And because only fewer people can afford to purchase, more people will opt for renting. With the demand alone, savvy investors should boost their cash flow in today’s market.
Is Spokane a buyers or seller’s market?
As of June 2021, Spokane is considered a seller’s market. That means that there are more individuals interested in buying than there are houses on sale.
Are home prices dropping in Spokane?
Since the global pandemic made people work from home, movers from large cities decided to relocate to a less expensive area. Spokane’s median house price ranges around $350,000, which is almost 20% more than 2020.
Is Spokane up and coming?
From the banks of the Spokane River to the amazing Manito park, there is a lot of natural and man-made beauty for all kinds of people. Therefore, Spokane is certainly up and coming! A Redfin report also shows that Spokane is among the few places expected to grow over the next decade.
Is Spokane a good place to live?
Well, Spokane is truly a fantastic place to stay. It is much simpler to move around, and many things you require are within proximity. What’s more, the cost of living is considerably cheaper in comparison to the rest of the Pacific Northwest. It is undoubtedly an ideal place to live and even raise your family. It would be best if you consider buying a property with Rich King Real Estate.
Should you use a real estate agent to purchase an investment property?
Because real estate agents may assist in bargaining an offer for their clients, it enhances the likelihood of receiving a reasonable price for the property investment. Before hiring anyone, it would be prudent to get some references from past clients and learn the agent’s capability to cut a good deal.