Investing in Boise Idaho Area Homes & Real Estate

I can show you the money. Investing now in Boise Idaho homes and real estate could deliver hug e returns from appreciation in the long term and in the short term- dependable returns from cash flow, tax shelter and equity build-up. Ask me to prove it. (208)866-3481

Low Rates.  The best reason for buying homes now- the cheapest money we may ever see in our lifetimes, locked in for 30 years! These near-record low interest rates combined with a smart purchase means positive cash flow is more attainable on rental property than it has been in many years in the Boise area.  Monthly income, combined with the tax benefits and principle reduction- as your renters pay off more principle with each payment- ensures a decent return on investment, before any appreciation.

Buying Low.  The stock market feels like gambling these days and gold is already way up. CD's pay less than inflation. Savings are even worse. Where do you put your money? Only one hard assett is down and that's real estate. Can't scrape up a 20% down payment? Get a partner or two. You can also use retirement funds to invest in real estate, even as one of the partners, through a self-directed IRA.

Boise area median existing single-family home prices are down 35-50% from just 4 years ago, the lowest in over 7-years, but appears to have bottomed-out. The Ada/Canyon county housing market is poised for appreciation with less than a 3-month supply of homes on the market and falling numbers of foreclosures and short sales. Home sales are the strongest in 4 years, but below "normal" levels, when taking into account the large population increases of recent years in SW Idaho.  The laws of supply & demand dictate there's only one way for home prices in the Treasure Valley to go and that's up. How fast is the question that makes real estate a long-term bet.

On a nationwide scale, I see both foreign & domestic investment money flowing back to real estate as consumer confidence improves. That could include billions in retirement funds as people learn about the self-directed IRA and feel safe investing in homes and real estate again. Real estate has always delivered long term gains in value that can be leveraged into double or even triple-digit returns.

The Foreclosure Bubble in Boise Metro- Short Sales and Foreclosed.  
Short Sales-  the number of distressed homes listed for sale monthly fell 30% during 2011. As of January 1, 2012, just over 32% of all homes listed for sale in the Boise-Nampa Metro are short-sales and priced for liquidation to avoid foreclosure. In my experience, these sellers will accept a low offer and then try to get the lien-holders to approve the contract, which can take an extra 1-4 months.  The lien-holders will most often try to work you up on price, but are willing to accept a discounted price to avoid the costly foreclosure process.
  
Foreclosed homes-   Repos come with none of the time-line uncertainty of short sales and are also priced to liquidate.  The number of foreclosed homes (REO) for sale in the Boise Metro has fallen over 70% from just a year ago. Still, about 7% of all homes listed in the Treasure Valley are foreclosed homes. This ample selection of government and bank-owned foreclosures includes existing homes, homes with acreage, condos, townhomes, luxury homes and a handful of multi-family income properties. 

Ada vs Canyon County.  In terms of recovery, Ada County is much closer than Canyon. The percentage of short sales and Repos is much lower in Ada County including the cities of Boise, Meridian, Eagle, Star & Kuna. With higher Repo inventory in Canyon county and with higher property taxes cutting into profits, I would lean toward Ada County for investments.  That being said, prices have fallen further in Canyon County- Nampa, Caldwell & Middleton.  

Fixer-uppers too!  Contractors or investors with skills & time can create wealth by repairing/improving homes right now.  Hundreds of foreclosures and short sale homes are available and needing repairs and sold as-is. Since the average home buyer will not take on major repairs or may be limited by financing, greatly reduced competition and an inherent discount makes fixing homes a great way to make money.

Learn more about real estate investing: Single or Multi-family?, Live Auctions, Flipping Homes  

Repoman always knows where the best buys are. See my articles on Bank Repos, HUD Homes and Repomans Best Buys.

Dan Rowe ABR CRS GRI
Broker of Dan Rowe Realty
danrowe@cableone.net
(208) 866-3481

Dan Rowe has been licensed in Idaho for 20+ years serving buyers, investors and sellers in Boise, Meridian, Eagle, Star, Kuna, Nampa, Cadlwell, Middleton, Ada County, Canyon County, Treasure Valley and SW Idaho. Dan has earned the following designations: Accredited Buyer's Representative, Certified Residential Specialist and Graduate of Realtor Institute. Repoman also specializes in foreclosure properties including short sales, pre-foreclosures, foreclosed and repossessed homes and real estate; HUD, VA and Bank-owned REO.

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