Buy an Investment Property Now or Wait? What to Consider

Current Housing Market

It's important to consider current market data when deciding if now is a good time to purchase an investment property. Let's look at the numbers here in Kitsap County, Washington. While the number of sales was down last quarter, the average sale price rose to $665,000. And despite higher than average interest rates, home sellers overall still received 96 percent of their asking price. These numbers indicate that the housing market here remains strong. And remember, $665,000 was the average sale price in Kitsap County, an area with a lot of different types of properties. This includes everything from high-end waterfront homes on Bainbridge Island to small condos in Bremerton, and everything in between. With so much variety, it’s possible to find a second property that meets your financial budget and investment needs.

Current Rental Market

Kitsap County's rental market remains healthy. We gathered data using the 700+ rental properties we manage here at Windermere Property Management. The following rental rates are the average for a 3-bedroom, 2-bath single-family home:

• Bainbridge Island: $3,200 per month
• Bremerton: $2,319 per month
• Hansville: $2,100 per month
• Kingston/Indianola: $2,600 per month
• Port Orchard: $2,775 per month
• Poulsbo: $2,800 per month
• Silverdale: $2,813 per month

As you’re researching investment properties, keep these averages in mind. Take time to do a cost-benefit analysis of various properties with a mortgage calculator to ensure that rental rates will more than cover your monthly expenses. And remember, while interest rates are higher than average right now, as real estate experts often say, you marry the home, but date the rate. You can always refinance when the rates go down, which will allow you to make more on your rental property in the future. If you have specific financial questions, we recommend talking to Windermere’s partner at Penrith Loans. Penrith Branch Manager/Mortgage Consultant Cherie Kesti is an excellent local resource. She has over 20 years of experience in the home financing industry. 

Buy Now or Wait?

Based on Kitsap County’s real estate market and his local expertise, Cameron Tappe, thinks now is a good time to buy. Tappe is a former Windermere Realtor and one of our current Windermere Property Managers. "In Kitsap County, the demand for housing is on the rise, with nearly 1,500 new housing units needed each year to meet the growing needs of the community. Whether through purchasing income-generating properties, developing new housing units, or purchasing your first rental property, seizing this moment can pave the way for long-term wealth accumulation and financial security. With increasing demand for housing in Kitsap County, investing in real estate not only makes financial sense but also contributes to meeting the critical need for housing in our community," explains Tappe.

Managing Your Rental Property

If you do decide to move forward with purchasing a rental property, you’ll have to prepare it for future tenants. Then you’ll have to decide whether you want to be a landlord, which comes with many responsibilities. Being a landlord involves much more than simply renting. You must be familiar with local tenant laws and know how to manage renters. This includes screening tenants, drawing up a lease, setting a security deposit, collecting monthly payments, managing preventive maintenance, and fielding fix-it calls as needed. While not a full-time job, managing a rental property is a significant time commitment. If you have concerns about owning a rental property, this list of common misconceptions may help assuage your fears and help you better understand the benefits.

Utilizing a Full-Service Property Management Company

If managing a rental property sounds like too much to deal with, Windermere Property Management is available to help. A full-service property management company, we serve property owners and tenants throughout Kitsap County. Our staff takes care of handling all your rental management needs. This includes effectively marketing your property, correctly pricing rentals for our market, screening tenants, collecting payments through our tenant/owner online portal, resolving maintenance issues, and more.

We are also able to find and screen renters quickly. Our average turnover time for the rental properties we manage is 15 days. This is much faster than most individual landlords can achieve on their own and with a lot less stress. For more detailed information on how our trusted, locally-owned property management company can help, you can learn more on our website or contact us today.