I just received an email from a property manager that I have worked with confirming what I have suspected. The investment property market is starting to heat up in Boise Idaho. Depressed home prices, low mortgage rates and extremely low vacancy rates are leading the way to both price appreciation of homes and cash flows via increasing rents!
According to the Southwest Idaho Chapter of the National Association of Residential Property Managers Vacancy Survey Report based on units occupied or vacant as of Mar 23rd, 2011 here are some of the findings:
- 4 bed single family homes, there were 459 units managed and of those only 8 were vacant which is a vacancy rate of only 1.7%.
- The median average rental was $1041.
When you compare that to buying a home in Ada County (Boise, Idaho) you will see that based on the current median prices and interest rates, that buyers are better off buying a home instead of renting it if they can. As of May 27, 2011; in Ada County there are:
- 837 four bedroom homes active (including contingent offers) in the Intermountain Multiple Listing Service (IMLS) for sale.
- Median Price of a 4 bedroom single family home is $209,900.
- 682 four bedroom homes active (excluding contingent offers) in the Intermountain Multiple Listing Service (IMLS) for sale. Median Price of these four bedroom single family homes is $232,600.
Since the median price of a 4 bedroom rental in Ada County is currently $1,041, that compares to a buyer getting an FHA loan at 4.25% interest rate (APR 5.160%) and 3.5% down payment for $183,500.
There are currently 228 homes meeting these criteria for sale that don’t have offers on them! 68 of those homes are brand new with at least a 2 car garage so instead of renting an existing home, why not consider having a brand new home built for less?
My company is an A+ accredited business with the Better Business Bureau. I have been a licensed Realtor in Boise for 20 years and have closed hundreds of homes including brand new homes with over 50 separate builders. I have owned rental properties for over two decades and thanks to my tenants, some of them are free and clear. Whether you are looking to rent, buy, build, or invest, please give Jim Paulson a call for a no obligation complimentary consultation to discuss the market and your options.
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