Are you planning to invest in Spokane real estate properties?
Smart real estate investments can reel in a considerable return on your initial purchase. But how do you make smart investments? The answer lies in due diligence. You need to understand the visible and hidden potential of a particular city or neighborhood.
When it comes to Spokane real estate investments, we’ll fill you in with all the important details right away. This Washington State city offers great investment potential for anyone looking to obtain a rental property.
In the following paragraphs, we’ll guide you through the main reasons why you should consider investing in a Spokane, WA real estate investment property. You’ll learn about the local economy, housing and investor opportunities.
1. Strong Appreciation Rate
Did you know that the appreciation rate of Spokane investment properties is on the rise? Some of the recent years have seen an appreciation rate of over 10%. For instance, a $250,000 home gained an additional value of over $25,000.
This means two things. As an investor, you should act sooner rather than later because there’s no reason to believe this upwards trend would halt in this decade. Plus, your well-timed investment can experience significant ROI in the long run.
2. Comparatively Low Tax Rates
The West Coast cities are notorious for high tax rates. For instance, California can take up to 11% of your income. The peak tax rate for the State of Washington is a tiny bit over 9%, making a sizeable difference long-term.
It’s not only the income tax rate that supports the investment potential of Spokane, Washington. The property tax rate is lower than the national average: 1.1% vs 1.2% of the rental property’s assessed value.
3. Limited Supply of Housing
Spokane is isolated on the West Coast, its geographical position limiting the potential of housing construction. The mountains pressing against the ocean means you have restricted grounds to play with.
The rapid property appreciation of cities like Spokane and Portland is partly explained by geographic factors. Further restrictions are due to designated wilderness areas and national parks located close to the cities. That’s good news for real estate investors as there is solid potential for continuous appreciation.
4. Cheaper Housing Than in California or Seattle
The California real estate market features strong demand and sky-high prices. You could buy two Spokane properties for the price of one in California. It’s easier to diversify your real estate investment portfolio in Spokane. This is why more investors are flocking to places like Spokane.
The same holds true in comparison to Seattle. Spokane real estate is significantly cheaper than similar properties in Seattle. This means that you can purchase a rental property for one-third of Seattle’s price while commanding rent that’s only half of Seattle’s average. Proportionally, that’s a significant increase in profits.
5. Numerous Neighborhoods to Choose From
Investing in Spokane real estate means that you have a variety of areas to pick from. Although Spokane isn’t as large as Seattle, there are still plenty of unique communities in the area.
If you are looking to invest in an eye-catching neighborhood, High Drive is one of your best choices in Spokane. A six-minute drive from Downtown, its stunning panorama views make this neighborhood stand out from the rest.
Investing in University District is a great idea. This neighborhood hosts five universities and their offshoots, including the University of Washington, Gonzaga, Whitworth and Washington State. The University District is a top-class choice for anyone considering a student rental strategy.
The history and beauty of this neighborhood is alluring. Since this community is surrounded by nature on all sides, it’s coveted by people with a penchant for tranquil areas. Even though the general feel is secluded, its residents are able to quickly reach downtown.
Similar to Peaceful Valley, the neighborhood of Vinegar Flats has an isolated feel that makes it desirable among certain target groups. Latah Creek is the element that shapes this community, draining into the Spokane River.
Most of the homes are pretty modest, yet offer considerable value for real estate investors.
This neighborhood is comprised of two distinct areas: Downriver and Audubon. Since both of these communities share Northwest Blvd, they are typically regarded as a single residential entity.
This is the area you want to invest in if you are looking for affordable investment properties. For instance, the prices may be up to $100,000 less than comparable real estate in South Hill.
The rent prices in this neighborhood start from $1,000. The local architecture of South Hill is beautiful and inviting. You can find mansions, cottages and even Victorian homes in this area.
West Central/Kendall Yards
The neighborhood of West Central/Kendall Yards shows a steady appreciation of the local home values. Its residents appreciate the mix of older and newer buildings. The overall demographics are changing as more families and young professionals enter the scene.
6. Landlord-Friendly Real Estate Market
Compared to California, the State of Washington has a generally landlord-friendly real estate market. For instance, you won’t face a cap on security deposits, and you’re allowed to raise the rent as long as you comply with the laws.
The Final Word: Real Estate Investing in Spokane, WA
Real estate investing in Spokane, WA is an excellent idea. You could earn a solid monthly income and boost your long-term personal wealth. Since Spokane isn’t far away from Seattle, the comparison between these places always comes up. Spokane is a more affordable alternative with a competitive draw.
The interest in Spokane investment properties has skyrocketed over the previous decade. That’s because Washington’s real estate and rent prices haven’t stopped growing. Investors and renters are looking for lower costs without sacrificing the great quality of life.