Real Estate Investing

There is a new trend in Australia of picking up investment properties as a first home. According to Mark Bouris of Wizard Home Loans, it’s a smart financial decision to “[pay] off their mortgage while still living somewhere affordable.”

The reasoning with this is simple…

1. Invest in a rental property
2. Build equity by letting the renters pay down the mortgage

For the Aussies that do this, they cannot afford to buy a home in the areas that they want to live. So investing is their way into the property market. Investments in Idaho, including single family homes, are nowhere near the prices of places like Australia’s east coast. However, rental properties in the Lewiston and Clarkston area still seem to make good investments. In fact, because they are so much lower they are great investments.

Take a look at our housing statistics pages to see the average prices of homes in the area. For one reason or another there are always people looking for a place to live whether they’re college students or people just waiting to build their dream home. Contact us and we’d be happy to discuss investment potentials in your price range.

In an effort to strengthen our local REALTORS^® both educationally and relationally, Judy Higgins started a bi-monthly breakfast meeting at the Red Lion for any agents wishing to share and strengthen their relationships. This morning the group discussed our new MLS system, Paragon 3, which comes with strong positive recommendation from the Moscow, Idaho MLS and others. We also noted a downward trend in our pricing, for the first time in nearly a year. We have enough inventory in every area except affordable housing, which is our biggest selling niche. Clarkston, Washington has announced that at lleast three new subdivisions will be opening in 2006. Lewiston has none we are aware of. Our area would be perfect for developers to come in and introduce housing that would sell in the $100,000 to $150,000 range, as the median home in that range was built in 1945, according to our MLS sold statistics since 1-1-05. Many of those homes are functionally obsolescent, but the only choice buyers have. Approximately 161 homes have closed in Lewiston in that category since January 1st. We will meet again December 21, and State President, Mike Johnston, will be our guest speaker.

In places like Atherton, California, where Google employees are cashing in stock for homes, real estate prices are sky rocketing while homes are becoming scarce. Idaho, on the other hand, allows investors and homeowners to responsibly stretch their dollars as they buy at relatively rock bottom prices.

Since the 1950’s, the affluent have poured money into Idaho because of the grandeur of its outdoor beauty and recreation. Idaho has attracted celebrities such as Bing Crosby, Patty Duke, Brooke Shields, Arnold Schwarzenegger, Clint Eastwood, and Jamie Lee Curtis. Herbert Allen (Allen & Company, Inc.), investment banker and Idaho property owner, attracts tech and media moguls such as Bill Gates (Microsoft), Michael Eisner (Walt Disney Company), Warren Buffett, and Michael Dell (Dell Computers).

Idaho is the place to invest.

Even considering the 26% rise in home prices, the average price of homes in the Lewiston area is still only $144,213 (source:local MLS data). For a California investor, whose average home price is $743,367 (source:ReReport), Idaho provides unique and profitable investment options… Imagine six rentals for the price of one!

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