TIME TO INVEST in Boise Valley Real Estate ?????When would you say is the best time to invest? at the bottom of the market or at the top of the market?
The question is obvious, however what is not obvious is when - where is the bottom.
When & Where are the key components separating the smart investors from the herd. We all understand the "herd" principle - wait until everyone is doing it and jump in right? That would be those that jumped into the market in 2006 -2007
For those of you that are waiting for the return of the 2004-2006 market conditions that propelled 20% - 30% + appreciation per year - forget it - not here - not now and probably not again in your lifetime. That was what is called an anomaly - an abnormal set of conditions that are not likely to prevail again.
OK so now what?
Let's check back in on Reality - From 1982 - 2002 Real Estate in the Boise Valley appreciated quite consistently at around 3% - 5% per year. This meant that if you owned a $150,000 home you were receiving added value at the rate of about $4,500 per year more than your neighbor who was renting. If you were the landlord, your renters were paying off your mortgage and providing you with a $4,000 + savings account that was probably more than you could save from your paycheck.
Then came the "herd" and everything went crazy and now of course the aftermath.
So now let's get back to that question about when and where is the bottom of the market? Wouldn't it be nice to invest at the bottom instead of the middle or top?
Those of you that have been listening to my advice about the Boise valley Real Estate over the past several years may remember that I have constantly advised you that SE & East Boise properties have always been the highest appreciating properties during times of appreciation and conversely during the rare times of depreciation have seen the least depreciation. This is not an accident or an anomaly; it is simply a result of supply & demand.
So Now you have one of the answers to "Where" ..now about when .. the answer: the 1st quarter of 2009.
Now let's talk about HOW
1. It is probably the absolute "Best" time to consider selling your existing home at a discount and buying your move up home at a greater discount. + pick up a better location with enhanced appreciation and less commute ( consider gas in the future at $5 a gallon in this equation and calculate additional savings)
2. This would be a great time to consider moving your Retirement account into a "self directed Real Estate Trust" and investing in prime locations with stable conditions. If you don't have enough money in your retirement account to purchase outright you can use your 401 K or other retirement funds for a 30% down payment and let the lessee make your payments.
When considering Real Estate investment you should plan on 20% - 30% down for positive cash flow in the Boise Valley unless you need negative cash flow for tax purposes.
This is probably the best "Buyers" Market you will see - don't let the media hype deter you from making sound decisions. I am certainly not advocating that you can go out there and just jump into any short sale or foreclosure because it's a "steal" It is a great time to make careful and extremely selective choices - It is not a slam dunk by any measure, and I certainly do not recommend any purchase without carefully analyzing your own unique situation and tax and investment strategy.
Dale Alverson is a career Realtor with43 Degrees North Real estate, A Certified Buyers Agent, an Accredited Buyer Representative with 35+ years representing client's interests - not sales!
Dale can be reached at 208-863-3093
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