Most people are aware of the record-setting lows Boise mortgage rates are chalking up right now
—the kind of rates that create tempting cashflow projections for even the most conservative would-be
investors. But, of course, other factors enter the decision, whether they are planning their real estate
investment for their own residence or as a rental. Given the uncertainty in the economy, prospective
buyers are asking themselves if now is the right time to be investing in Boise.
Bankrate.com, the popular investment site, just tackled that question. Its reasoned response: the
answer is yes and no(but
mostly, yes). “It’s hard to see such low rates and not reach for your
checkbook,” was its understandable response. But even so, some time-honored qualifications remain.
The first proviso has to do with how long the investor plans to hold the property. If the answer is
anything short of 5 years, transaction costs take a considerable bite out of the financial benefit—even
considering the unusually attractive interest rates. For that reason, younger prospective homeowners in
particular should consider if the property will accommodate a growing family. It may make sense to
consider a larger property than is currently needed—particularly if these rarely-seen mortgage rates make
it budgetarily sensible.
For others who are considering an investment in Boise as a landlord, the same considerations apply.
On the other hand, for others who may be planning a “quick flip,” the unknowns in the economy could
make that investment one that requires a heightened degree of caution. In most instances, though, if you
are planning on holding the asset, if the cash flow projections make sense, the ‘yesses’ outweigh the
With mortgage rates as attractive as those seen now, investing in Boise is an undeniably tempting
proposition. Of course, the first step is the one that underlies all: identifying the right property. Call me
today to discuss what is out there right now!