Jeff Williams is a top-producing Realtor with Windermere in Tacoma specializing in the purchase and sale of historic and luxury homes. Click here to email Jeff or give him a call at 253-303-1135.
According to an article in the Seattle Times, Gene Balk examined recent census data surrounding an emerging trend that points to a shift from King County to more affordable Pierce county.
Gene notes, "It's no secret that newcomers are pouring into King County from around the country and the globe. In fact, we broke a record in 2014 for the number of new arrivals from out of the state, which I wrote about in my last column. But could we also be witnessing the emergence of a countertrend – that of a growing number of folks fleeing pricey King County and heading south to Pierce? New data on U.S. counties, released by the Census Bureau on Thursday, hints that this may be the case." Click here to read Gene's full article.
The reporter's observations certainly support what we as Realtors are seeing here in North Tacoma on a routine basis. Many of our new buyers are people moving to Tacoma from the Seattle area, and our last four North End listings have sold to folks from Seattle. So… what does this trend mean? Well, we're currently seeing an upsurge in prices and a significantly low level of home inventory in North Tacoma. (you can review those trends here). Thats good news if you currently own a home here, but not such good news if you're in the market to buy this spring.
Jeff Williams is a top-producing Realtor with Windermere in Tacoma specializing in the purchase and sale of historic and luxury homes. Click here to email Jeff or give him a call at 253-303-1135.
The demand for rental homes in Tacoma’s North End is high, with landlords charging as much as $1800-$2000 per month for a nice three bedroom house in a desirable location like Proctor or the Stadium District.
Many homeowners were able to secure extremely low interest rates by refinancing when the market was low, which prompts some to consider holding on to their primary residence as a rental property when purchasing their next home. Residential real estate in Tacoma’s North End is certainly a great investment. With the economy stabilizing and job growth expanding in our area, some are predicting as much as a 20% gain in market values over the next 3 years.
So whether it’s a property that you purchase specifically as a rental or a primary residence that you’ve decided to convert into a rental, it’s important to ask yourself a few questions before deciding to become a landlord.
5 Questions to Ask Yourself BEFORE Renting Your Home
1. Do you know how to screen potential tenants? Credit-worthiness? Employment and rental history? You can find out more about tenant screening at Bigger Pockets.
2. Will you allow pets? Cats? Dogs? Large? Small? Allowing pets will obviously increase your potential applicant pool, but pets can take a toll on a house which might cost you more than it’s worth in the long run.
3. If your house is located near the University of Puget Sound, will you rent to students? You may be able to earn more income if you rent by the room, but you can also expect more wear and tear on the property.
4. Have you talked to your insurance company to find out if there will be an increase in your premium if you convert to a landlord’s policy? You can find out options from our preferred insurance agent Jerry Hallman at Farmers.
5. Have you spoken with your accountant about the potential tax implications associated with owning and/or selling an investment property? Capital gains taxes are easier to avoid when selling a primary residence than they are when selling a rental property.
Another route to consider would be purchasing a property for use as a short term rental. The startup and maintenance costs (furnishings, utilities, supplies etc.) may be greater and the property will require more hands on attention, but the earning potential of a daily, weekly or monthly rental will be higher. There are a number of sites available for marketing a short term rental, including www.airbnb.com, www.homeaway.com and www.vrbo.com. Lastly, if you’re reluctant to deal with the active management of a rental property, you can always enlist the assistance of a property management company. Locally we recommend Parkwood Property Management and McNally Property Management . If you’re interested in purchasing an investment property, let us know. We’d be happy to help you navigate the waters.
Mark Pinto is a top-producing Realtor with Windermere in Tacoma specializing in the purchase and sale of historic and luxury homes. Click here to e-mail Mark or feel free to give him a call at (253) 318-0923.