Why do you invest in real estate? Likely, it’s because you recognize the opportunities for recurring rental income as well as long-term growth. You know there are a lot of rewards to owning property. There are also a lot of risks.
As you balance the risks and the rewards, especially in today’s market and economic climate, think about how they apply to your unique investment goals. That’s what will drive the decisions you make and the tolerance you have for risk. It also impacts how you identify the rewards when they show up.
All investments are both risky and rewarding. In the stock market, you have unpredictable market trends and frequent highs and lows. Real estate, at least, delivers you a tangible asset and a hedge against inflation. Those are two rewards right out of the gate.
Bellevue’s Rental Market
Let’s talk about some of the rewards of investing in Bellevue first.
The local economy is strong, and most of your tenant pool will be high earners. The tech industries, healthcare industries, energy, and education industries are creating new job opportunities every quarter. There’s also a decent amount of tourism.
Population is also growing. It’s seen a steady increase since 1990, and the more people we have moving into Bellevue and the surrounding areas, the more likely you are to have tenants looking for great homes. As interest rates continue to go up, mortgages are getting more expensive. That’s keeping more people in the rental market, which is an excellent investment reward.
Bellevue Home Values
The sales market is hard to follow lately. There have been unusual spikes and strengths, and we’re certainly dealing with a competitive market in Bellevue. Here, home values are high, and local real estate has been appreciating steadily over the last five years.
So, investors need to know that there’s a risk they won’t earn a lot of appreciation right away, nor will the cash flow be high or even positive the first few years you own your property. But, if you’re willing to hold your investment property for the long term, you’ll find you own a property that’s worth significantly more than it was when you bought it. And, you’ll have enjoyed years of tenants paying down your mortgage and covering your property expenses.
There’s a risk that you may be paying more than you want to for a home in the current market. But, that investment will begin making you money immediately. That’s where smart investors find the reward.
Buy the Right Bellevue Investment Property
Another risk in any real estate market is that you’re buying the wrong home.
Remember that you’re not looking for a property that you’re going to occupy yourself. It doesn’t have to have a large master suite and granite counters. Know your market and your neighborhood. Tenants want a clean, functional property in a good neighborhood. That’s what you should be looking for; not the perfect home.
Don’t try to navigate the local real estate market without professional help. If you’re thinking about an investment, let us help you. Please contact us at Real Estate Gladiators. We serve Monroe, Issaquah, Bellevue, Everett, Lake Stevens, Kirkland, and other cities in and around King and Snohomish counties in Washington State.