Getting the money together for a down payment on a new home doesn’t have to be hard. If you plan, save, and make use of potential resources, you’ll be on your way to owning a home in 2021.
If you’re looking to invest in real estate, Seattle, WA is one of the best places to park your capital.
In This Article:
- Where to Buy Investment Properties in Seattle, WA
- What Makes Seattle a Good Location for Investors
Are you looking for the best place to buy investment properties in the U.S.? Be sure to add Seattle to your shortlist. The city has many of the fundamentals investors look for, including strong housing demand and a stable local economy.
Where to Buy Investment Properties in Seattle, WA
When it comes to choosing a city for buying investment properties, you have a dizzying array of options. In fact, that’s one of the biggest challenges for many investors — especially those who are buying their first investment home. Where do you start? What city, or cities, should you focus on?
There are many factors to consider when choosing a location for your first (or next) investment. The strength of the local real estate market, housing demand, employment, in-migration and population growth — all of these factors have a bearing on your choice. They can all affect your return on investment.
What Makes Seattle a Good Location for Investors
One could argue that Seattle is one of the best cities in the U.S. to buy investment properties. There are many factors that support this notion. Here are just a few:
Steady housing demand
The Seattle real estate market has suffered from very low levels of supply for several years now. And while inventory appears to be rising at present, it could be quite some time before the market becomes truly balanced again. This is partly what makes Seattle a good location choice for real estate investors. Renters and buyers alike are competing for limited inventory, especially when it comes to detached single-family homes. So there’s plenty of demand in the market.
Strong local economy
The job market is another key factor to consider when choosing a city for your next investment property purchase. A high employment rate means that there are more buyers and renters in the area with the financial means to buy / rent your investment property.
And Seattle gets high marks here as well. The city has a strong local economy, bolstered by a mix of older industrial companies and newer tech companies. And as a “tech city,” it attracts highly skilled, high-earning residents from elsewhere in the country.
A growing population brings more demand for housing, on both the purchase and rental sides. (All of those new residents need somewhere to live.) Buying an investment property in a city with a gradually rising population can be a smart move, and it could also boost your return on investment over time.
Over the past few years, the population of Seattle has risen above 700,000. And it’s still climbing. The city has much to offer — good job prospects, natural beauty, and cultural activities, to name but a few. These and other attractions will bring new residents and sustain housing demand for the foreseeable future.
Rising home values
Homeowners in the Seattle area have been earning a pretty good return on their investment for years now. Home prices have risen sharply over the past year and are expected to continue increasingly into the near future.
That means homeowners of today can take advantage of an increase in equity as their homes appreciate over a short period of time.
When buying an investment property in a real estate market like Seattle, there’s a pretty good chance you’ll be able to sell it for a profit down the road.
Using a Mortgage Loan for an Investment Property
Mortgage loan requirements can differ for investors and “regular” home buyers. For example, a person who is buying a home to serve as a primary residence might be able to put less money down. While a person buying a property in Seattle to serve as a rental income property might have to make a larger down payment. (Though there are exceptions to this.)
That’s just one example of how the financing process can differ between investors and owner-occupants. There are also different financing limits and requirements for single-family versus multifamily properties. That’s why it’s so important to speak to a knowledgeable loan officer who can explain all of your financing options. So be sure to contact our staff with any questions you have. Apply Now or Get Pre-Approved!
Sammamish Mortgage is a local, family-owned company based in Bellevue, Washington. We serve the entire state, as well as the broader Pacific Northwest region that includes Idaho, Colorado, and Oregon. We offer a wide variety of mortgage programs and products with flexible qualification criteria since 1992. Please contact us if you have mortgage-related questions.