The state of Washington offers a plethora of promising investment opportunities for buyers. But which type of property will give you the best returns? Ah, there is the rub. It doesn’t matter if you are a pro investor or an individual looking for a second source of income. You don’t need a real estate agent to tell you that investing in Kirkland homes or rentals depends on your own preferences as well as a host of other factors. Here is what you should know –
Properties such as single family homes appreciate faster than rental units such as condos. This is mostly because most buyers do not exactly relish the idea of paying more for a property that they will have to maintain later, especially if the property in question is old.
This is also why a lot of investors include single family homes in their investment portfolios. If you plan on selling the property anyway, all you have to do is to make necessary repairs once. An investor who owns multi-family housing will have to fund maintenance or repair costs in each housing unit.
Of course, rental properties also have huge potential. Here are some benefits that you might want to take into account before you make your decision –
This goes without saying. A rental property such as an apartment complex is a cashflow machine provided that you have a consistent flow of tenants to fill up units when the previous ones pack up and leave. For example, an apartment complex that is near a university campus and offers affordable housing for students is a promising prospect for a real estate investor.
The value of your rental property will steadily increase over time. Couple that with a monthly income and you have a real estate that promises consistent ROI.
The rental property market is the only one that is not dominated by investors. In other words, any individual can invest in rental properties and make a profit. Like stocks, you do not have to have a plethora of knowledge to own and manage such a property. Plus, such properties are often safe investments. Chances are that your chosen rental complex will still increase in value over time even if it happens to be the worse of its type.
Rental properties come with a host of tax benefits. While this is not the only factor that should help you decide tax benefits do come in handy if your property is negatively geared.
In the end, your decision depends on your personal preferences. If you would rather hand over all the maintenance to someone else in the near future, investing in a single family Kirkland houses will be your best bet. However, if you prefer a property that guarantees consistent cash flow then a rental property would be a better choice.
If you are interested in investing in the state of Washington, connect with us and we will answer and questions that you may have.