There is little debate about the fact that real estate investing has produced innumerable millionaires over the many years. In fact, at least 30 U.S. billionaires made their money through real estate.
Recently, Boise, Idaho has begun attracting the attention of property investors. According to a 2016 U.S. Census Bureau, the state is receiving a net migration of nearly 19,000 people per year.
On top of that, the people migrating there are young professionals and tech sector employees with money to spend. Taking in those running away from big cities and attracted to Boise's recreationist's paradise.
Apart from these, there is more to why they choose Boise, Idaho to invest. Here are some of the reasons why Boise is such an attractive property investment destination:
Reasons for Buying Boise Investment Property
1. Boise has a High Livability Rate
Boise offers the perfect domestic balance between rural access and urban feel. It’s where people want to settle down and stay. In fact, Boise is favorably ranked on a U.S. News list of the best places to live.
There is a trendy cuisine scene, access to numerous museums and new construction all over the area. Right outside its urban center, Boise gives way to a rural paradise with direct access to lakes, deserts, rivers, and mountains.
2. Boise Is Business-Friendly
The Boise economy is as robust as ever with jobs plentiful and stability reliable. Business Insider ranked the city as the third fruitful location to find a job.
The unemployment rate in Boise is 2.9%, which is 1.5% lower than the national average. The Wall Street Journal recently praised Boise as having one of the nation’s fastest-growing job markets.
The city’s tech industry is a hub for many new start-ups and is home to giants like Micron and HP. Besides the growing technology trend, Boise still remains a healthcare and hospitality hub. Many Boise residents are employed by St. Alphonsus Health Systems and St. Luke’s Health System.
3. Boise Is Remarkably Safe
Idaho is one of the safest states in the country. In fact, MSN voted Boise as the 8th safest city in the world.
The safety index starts at 82.29. This means that many people still leave their doors unlocked, and kids can comfortably walk home from school without worry.
Best Areas to Buy Investment Property in Boise, Idaho
1. East Boise
East Boise is a fast-growing area and is proving to be desirable for new people moving in. Because of the new construction, the area is commanding higher prices.
Boise’s Green Belt is even more desirable. It’s a 25-mile long bicycle and pedestrian path that links over 850 acres of parks and natural areas along the Boise River. The area features abundant wildlife, lush riparian areas, and towering trees.
2. North End
North End is also a desirable area in Boise to invest in real estate. It’s home to a particularly liberal community of Boiseans and characterized by tree-lined streets and century-old, ivy-covered houses.
Homes here are unsurprisingly higher priced. It’s close to downtown Boise, has good walkability, and is in close proximity to recreation. Talking of recreation, North End is in close proximity to historic Hyde Park – which is popularly known as “the heart of the North End.”
Boise is the central business district of Idaho, located north of the Boise River. It is very desirable for Millennials. Apartments, condos and converted historic homes here are higher priced and a short walking commute to many of the cities employers, arts and entertainment venues, as well as dining areas.
4. Central Bench
Central Bench features a low cost of living, lots of local amenities and has a high income per capita. Homes are mid-priced and it’s still possible to find investments in this Boise city for under $250,000.
5. West Boise
Beyond the hustle and bustle of Boise downtown, nestled between I84 and Hwy26 reaching as far west as Meridian, lies West Boise. It’s home to Boise Towne Square and a mecca of more affordable housing.
It’s a central location for commuting to downtown Boise, Meridian and Eagle.
According to 24/7 Wall Street and USA Today, Meridian is the country’s best city to live in. The rapidly expanding job market, lower unemployment rate, and low crime rate make it very attractive not only for people but also for businesses.
A newly developing area at 10-mile is slated to be the new “center of the Boise Metro area.”
Take time to find a good resource to help you understand the best areas of Nampa to invest in. Neighborhoods can vary dramatically in desirability.
North of the Interstate can be considered preferable to South by some because of commuting advantages. While new housing pushing the outer boundaries to the south may offer beautiful homes, close to wine country with magnificent views, from a rental standpoint these homes may be a little far out to attract tenants who have to commute to Boise for work.
Livability.com named Nampa one of the best affordable places to live in the U.S.Housing and utility costs are about 22% below average compared to other cities. Also, it has a cost of living that is about 5% less expensive than the national average.
The cost of living in Caldwell is 9.7% less than the average cost of living in the U.S. Select neighborhoods can be great investments, and still be quite affordable.
Things to Consider Before Investing in Boise’s Real Estate
1. Expected Cash Flow and Profit Opportunities
The goal of any investment is to generate profit. Ideally speaking, the property should be able to adhere to the 1% Rule. The 1% rule states that if you buy a property at a specific amount, you should be able to generate a monthly income of at least 1% of the amount that you bought it for.
For example, if you bought the property for $200,000, then it should be able to give you $2,000 every month in rental income. However, investors are stretching to invest in properties in the Greater Boise Metro area that no longer fit within this parameter. Instead, they are relying on capital appreciation and increasing rents to satisfy their investment model.
2. Buy a Move-In Ready Home
This means buying a home that is ready to be immediately occupied. While it is true that fixer-uppers cost less, the cost savings may not be worth the time required to transform the home into a move-in ready one.
3. Consider Hiring a Property Manager
If you are not well-versed with Idaho’s landlord-tenant law or if you do not know the local landlord entry laws, it would be best for you to consider hiring a manager. At Realty Management Associates, we specialize in managing residential properties and would be happy to speak with you.
4. Make Your Property Attractive to Tenants
An attractive property will easily draw good tenants to your home.
Real estate investment in Boise can be very rewarding. If you are looking to invest in Boise, ID, we hope that you’ve found this article informative. Remember that successful real estate investing requires a lot of patience and investment of time.