Investing in property is regarded as one of the best ways to go for long-term returns, especially if you want something that starts returning quickly, rather than taking 10-15 years to start putting money back in your pocket. While Kirkland property is selling high to both local and international investors, it’s still a good time to invest if you have the money, because real estate and job trends suggest that the market may continue growing. That aside, if you’re looking for a small, first time investment in a single piece of property, and want it local, then your two choices are a condo or a house. While you could also invest in newly developing property, or find something to develop yourself, that requires a considerable investment. The following overview for smaller investors can help you with choosing a house or a condo investment in the Kirkland area.
A condo is an apartment, duplex, or home that you purchase and put up for rent, and it has it’s pros and cons. Kirkland usually has quite a few condos on sale thanks to local developments, people moving into larger houses, and people who are moving. For that reason, there are usually plenty of options, and as of the first quarter of 2015, prices average just over $200,000 to upwards of $800,000 depending on the location, size, and amenities, with $200-$400,000 being the norm. At the same time, rental rates typically hover around $1,000-$3,000 per month depending on the area, size, number of bedrooms, and amenities.
The cons of a condo are that you do have to share the property with other investors unless you choose to purchase the whole building, that the hallway, grounds, and lobby are independently maintained, or co-maintained, so it is more of a hassle, and that there may be restrictions on what you can do with the building.
A house in Kirkland offers you more freedom but does require a larger investment. While there are often many houses going on sale, including multiple that start on auction for as little as $50,000, there is a lot of competition in terms of buyers. Your best bet here to get a good deal is to check foreclosure auctions and auctions, and then familiarize yourself with everything, and bid on property to try to get a good deal. Normal prices start at around $250,000 for fixer-uppers, but average between $500,000-$750,000 for a normal house. Most rental prices for a single family home range between $2,000-$3,000, with some going up considerably higher.
Probably the main consideration when choosing between a condo or a house is your initial capital and what’s available. If you can afford a house or a small apartment complex rather than a condo, then by all means, go for it, as you will have more autonomy, more choices, and fewer restrictions. On the other hand, if you’re on a very low budget and feel that you absolutely must invest, then condos are in-demand, popular, and can still offer a return within 10 years in most cases.
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The discussion herein is of a general nature only and is not to be construed as specific legal advice, which requires the establishment of an attorney-client relationship and fee agreement. SJA Property Management does not provide legal services.