Despite, or perhaps because of, raging price wars, property values skyrocketing, and more than 40% of homes on the market in the Puget Sound area selling for more than their property value, the Seattle area is one of the best places to invest in real estate in the United States. The area, including Seattle, Bothell, Kirkland, Sammamish, Issaquah, and other areas surrounding key companies like Boeing, Microsoft, and Starbucks. In fact, recent reports from Seattle and Bothell property management companies actually suggest that the Seattle area is in the top 7 best places to invest in the United States.
Those statistics may seem difficult to believe considering the steep investment costs associated with Seattle real estate, they are consistently backed up by foreign and global investors, who are snapping up second and first tier real estate and developments around the area. With more than 200 new companies moving into the area over the last year alone, Seattle has become a hotspot for jobs, and therefore for property sales and rentals, resulting in a massive influx of global interest. In fact, global investments skyrocketed from almost nothing to 18% in 2013, as the market proved that it is remaining stable, and the job market continued to grow.
While more competition in the form of foreign investors does mean more expensive property in some cases, it also means market interest in property value from more than one area. While prices are high, so are rental rates for everything from offices and apartments to storage units.
Investing in Bothell Property
Initial pricing is a major consideration, especially for first time investors, but although Seattle area property goes for a higher initial cost, it does incur higher profits over longer periods of time. If you want an immediate turnover with a lower profit in ten years then Seattle area property is not the way to go, but if you want losses at first with higher turnover later, then it most definitely is.
However, with low cap rates, investors can expect to loose money for the first few years, which can be considered as part of the investment, until rental rates go up, and they can recuperate the initial expense of the property. As a result, larger multi-family homes and condos are almost always a better investment, and the more units, the better the return, which makes Seattle more ideal for larger investors and corporations, rather than individuals and first time investors.
Smaller investors can still get a foot in the door by investing carefully. Many larger investors are currently getting in on very large apartment housing and office complexes, which leaves the smaller units (both commercial and residential), open for lower budget investors. While larger investors also have the advantage of hiring professional marketing teams, smaller investors can fill units just as easily by taking advantage of Bothell property management companies to help increase profits as well. Essentially, while the large scale investment properties and developments are still controlled by corporations, the Seattle area is a rich investment opportunity for anyone with the startup capital.