Sammamish Property Management Dilemmas – Is Now the Right Time to Buy?One of the major dilemmas for any real estate investor is whether to invest in property at a certain point of time. As with any type of investment, the main goal is to buy low and then rent or sell high, which can be difficult in a market with a demand for property that is currently higher than the number of homes and units available. However, the question of whether or not the market is still available for sound investments is still more than debatable. Sammamish property management companies are noting a steady increase in the cost of rentals, which while lower than those in downtown Seattle, are still significantly higher than those of a year ago, with sometimes-average increases of $300-$400 in rent over that time. So, is now the time to invest?
Property Pricing in Sammamish
Unfortunately for property investors, the pricing of single and multi-family homes has gone up considerably since a year ago, with the average home now somewhere between $800,000 and $600,000. The median sale price of $640,000 is a full $90,000 more than the same median a year ago, or a 16% increase. Despite this, median home sales have fallen as more foreclosed homes hit the market. The result is that while most single-family houses are expensive, there are still deals that may be worth investing in.
More to the point, multi-family and multi-unit apartment housing often sells for more, but for considerably less door-to-door pricing. This means that the investor with a large investment portfolio is better off looking for large-scale apartments to build or buy. These typically vary in cost with pricing determined by the condition, location, and number of units in the building. A large scale, new, apartment complex might retail for as much as 10 million, while a smaller unit might go for a great deal less. On average, apartment units sell for just around $200,000 per, or some $450,000 less than comparable single-family homes in Sammamish.
Is the Market Worth Investing In?
The truth is that for the most part, property prices might not be changing anytime soon. While real estate might not rise too much in cost, it could remain stable for some time, meaning that any investments will have to be made in this pricing environment. However, buyers can ‘shop smart’ when looking for property, and compare the cost of building new and buying lots, to the cost of purchasing a complex. Purchasing buildings in need of renovation may also save money, although it is important to consider the cost of renovations when making purchases. Lower demand areas such as away from downtown and on city limits will also sell for less, but it is important to consider that demand is lower, meaning that rental rates are lower as well.
If the current rental rates hold steady, a $200,000 apartment unit could pay for itself in as little as 10 to 15 years depending on rates, repairs, and upkeep. On the other hand, if the bottom drops out of the market in the next few years, anyone who invests in new property now could be in for a loss. On the other hand, those who shop smart and do not invest until they get a bargain could see profits either way.