Market Essence: Supply & Demand
Portland's current market creates opportunity for buyers to really capitalize on the downturn. Compared with peak prices in late 2006 we're down significantly, more than RMLS numbers reflect in some areas. Demand for single-family homes is still there and sellers are beginning to realize that price reductions are necessary to move sales(see Portland Property Appreciation and our commentary for the latest trends). The remainder of 2008 and well into 2009 will most likely be an awesome time to take advantage of a long term real estate investment. Contact us to find out what areas will provide the best return.
Portland's rental market is really picking up for owners. Rents have increased a good 10% within the last year alone and show no signs of slowing. For example; a $200,000 single family house would have rented for $950/mo in 2006 but today that same house would rent for $1095.
Single family homes do not provide the greatest cash flow but have several advantages over condos and multi-family investments. Some of those include ease of rental, lower advertising costs and liquidity when it comes time to sell.
Buying Portland Real Estate can be very lucrative. Timing is a big factor and this buyer's market is worth investigating. Feel free to call me direct on the cell and pick my brain!
Condos & Townhouses:
Buying a condo or townhouse as investment can be a bit tricky. Although there are perks. Low or nonexistent maintenance is a big plus for out of state investors and landlords who want the hands-off experience. Return on investment for this style of home has been affected by a simple factor; There are a billion of these out there!
Townhouse living gained popularity starting around 2000 and has since skyrocketed. Portland's mass transportation (MAX train) and bus system tend to run very close in proximity to higher density housing. Not by accident. The Portland Metro Area's urban growth boundary has significant impact on planning and where townhouses or condos can be built. The more our transit system expands the more high density housing follows.
Return on investment has an additional factor to consider with attached homes. HOA fees typically run in from as low as $75/mo to well over $300/mo. These fees will often cover exterior building maintenance, landscape, and garbage. Tenants are now finding a personalized water bill rather than having it included in the rent. Look for separate meters when purchasing as water will cost around $45/mo.
The shear supply of our homes for sale in this arena is cause for concern from an investment standpoint. Hey, I'm not saying that you can't make a good investment out of the condo scene, just educate yourself about different areas. Happy to discuss your particular situation and goals to help make Portland Real Estate Investment a successful venture. Call us to find out more.
Having said that, the new condo projects along Portland downtown waterfront and the Pearl District can be sound investment. These condos will reshape downtown living as more and more baby-boomers are approaching retiring age within the next 10 years. This target market will have transform real estate investment strategies rapidly. Click to learn more about Portland downtown waterfront condos for sale.
Multi-family homes / apartments have traditionally been great as income properties and long-term investments. Many investors, however, lack the analytical know-how to differentiate the SUPERB investment from the average performers. Aside from looking at locations, you must analyze the immediate return on investment. Computing the capitalization rate is one of the simpliest and easiest ways to determine your profitibility ratio. Check out how capitalization rates are calculated here.
Portland's market for rental properties remain relatively strong in downtown Portland, and parts of NW Portland. However, apartment rentals are softer in most part of Hillsboro, given the over-supply of condos, townhomes, and stiff competition from other apartments. Property managers are using various gimmicks to attract renters such as free rent, free TV, etc.. Investors need to be cautious in selecting the right location to invest in for multi-family residential properties.
Contact us to learn more about the more secured neighborhoods to invest in. Or to inquire about SPECIAL apartments / income properties that are not listed anywhere in the MLS system to expand your choices. We have the technology, the access, the expertise to help you find the best investment.
Office properties had been relatively soft in most parts of Portland the last several years. But beginning in late 2005 and throughout 2006, the office sector has been revived. There're office development projects all over the Metro Portland area and the demand is strong.
The retail sector is booming. This is particularly true in "revival / transitional neighborhoods" like North Portland and NE Portland. There are also some hidden opportunities in self-storage, land, and some retail space in selected neighborhoods all over Metro Portland area.
All You Need is Dave
Contact us to discuss your investment goals today. 503-789-7633 (cell), Toll-Free 1-877-629-5825, or email us below to see how we can help you with your Portland real estate investment needs.
Call us at Toll Free at 1-877-629-5825 or 503-789-7633 (cell) or email us to see how we can help you with your Portland & Lake Oswego property investment needs.