I was recently appointed the exclusive agent in the Wenatchee real estate market area for a large investment network out of California. I am now getting calls from the members, even though we haven't offically announced the opening of the market. Since Wenatchee has received so much national publicity, their radar are up and they are beaming in on buying investment homes here.
Very few of them know where we are or anything about our area, let alone how to pronounce Wen-at-chee . They have lots of questions. One of the first things I tell them is what is driving our appreciation. In a nutshell, it is our diverse economy and great weather.
Our desert like climate, with 300 days of sunshine, is one drawing card but we also have several major employers: Agriculture, Hydro-electric power industry, Alumuminum production, Medical services, Educational services, Government services (local, state & federal), and tourism.
In addition, last October we were named the Safest City in Washington for 2006, our unemployment is at historical lows AND we are a recreational mecca (with those 300 days of sunshine) for active retirees.
For investors, with median home sale prices rising 21% from $179,900 in December 2005 to $218,000 in December 2006, we are no longer a positive cash flow market. We are a negative cash flow investment market, with current rent rates.
But, so what! Who cares about a negative cash flow of $200 - $300 per month ($2400 - $3600 per year) if you're going to realize an appreciated value in the neighborhood of $40,000 per $200,000 of market value per year?
Something to think about.
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