So far the first half of the year has shown very little movement in small apartment building sales.  When looking at 4 plexes there have been 10 sales year to date, nearly on track with 2008 volumne of 11 property sales. On top of that the average price is $271,000 for this year.  The typical 4 plex that is 5 years old is averaging a the low 300's.  Compared to the same time last year the average price was $344,000 or a 21% drop in value.

According an article published in the Idaho Business Review yesterday apartment vacancy rate is up slightly to 9.5%. I personally see a wide variety of apartments for rent in the Boise valley. From high end luxury apartments with all the country club amenities to more basic (somewhat older units). From what I am seeing applicants on some of our units are moving down in price point and amenities. Prospective tenants are very budget conscious. As a result I see vacancies higher in the luxury market that the quality mid range and a bit higher in the low end (older) units as the mid priced and newer units have adjusted in price.

I often get the opportunity to work with senior clients or clients who have parents who are in need of senior housing.  The housing needs that are most often requested is for a bedroom on the main level that offers some privacy for a live in parent but does not occupy the mater suite.  There are two other alternatives.  The first alternative is a separate detached “mother in law unit”.  These typically must be in neighborhoods with lot sizes that will accommodate a separate structure - usually on an acre or more. The second option is a townhouse that is in a senior community – 55 and over.  These can be purchased in the low – mid 100’s and are located in Meridian.  These offer an investment option down the road as well.  More to follow on that subject.

Luxury living spaces continue to be very popular in the Eagle area.  It’s not unusual to find built in fireplaces and commercial grade BBQ’s on many extended patios.  What is unusual though is finding the tranquility and privacy of mature landscaping with a modern home. Here is anoutstanding example of both.

Considering estate living in a rural setting for you and your extended family, you must look at this four bedroom house on a park-like acre.  It has a separate cottage for Granny complete with a kitchen, full bath, living room, bedroom, and private patio.  All just 20 steps from your back door!   Granny will be minutes from the Eagle Senior Center where she can join contemporaries for luncheons, bingo, and exercise classes.  She can also enjoy knitting classes at the library, lunch at the Blue Moose Café, or trips to Coldstone’s for ice cream with the grandchildren.

Take a virtual tour of this home.

People talk about the value of their home they will readily tell you how much they paid for it and how much money they have made on it. They talk about their mortgage and what their interest rate is. What people often overlook is the real reason they purchased a home and it’s what I call the “emotional value”. Meaning this is the place they call home.

The American Heritage Dictionary defines home as: An environment offering security and happiness.

I like this definition as your home really is an environment. 
 

• An environment that you are in control of. 
   
• An environment that offers security and safety.
   
• An environment where happiness can be found.

When you talk or think about your home – think of the life you will lead there.  The lessons you will teach your kids, the laughter you will have with your friends, the memories you will make with your loved ones.  These assets are the most valuable, irreplaceable and uninsurable items that you will ever own.  These are assets that anyone can have, money doesn’t matter, age doesn’t matter, status, race and religion don’t matter.  All that matters is that you create an environment offering security and happiness.  We all have the power to create this environment.  It starts with our own attitude.   

A client asked me this question today and here was my answer. 

Basically it comes down to the type of tenant. A tenant leasing a single family home is typically more stable (key word "family") where an apartment tenant is more transitional. So - on a tenant by tenant basis the single family tenant is more stable BUT if you have one vacancy you are 100% vacant vs. a duplex you are only 50% vacant.  Our single family home tenants typically stay for 16 months where our average apartment tenant stays for about 10 months.  Turn over is a much bigger factor on apartments vs. single family homes and turn over is a large uncategorized expense.  

Ok – you are buying a service and let’s say that service is an attorney or real estate broker.  You want the best deal possible so naturally you ask for a reduction in the person’s fee.  The person almost instantly capitulates to your request.  Yahoo for you ……… and bummer as well.  Why bummer – well you just hired this person to negotiate for you and, um, ah, they can’t even negotiate for themselves. Remember you are not buying a product but the advice and experience that person has to offer.  In this case you quite literally get what you pay for.

I project Jan – March to be the best buying opportunities for upper end homes in the cities of Boise and Eagle that we have seen in over a decade – but, don’t wait too long.  Inventories are shrinking daily so get-a-movin if you want a bargain.  “But Darrin I have a house to sell in Boise first and now’s not the best time.”  I hear clients say this all the time. My answer is in the form of a simple question.  What if I can show you how you can make $75,000 - $100,000 by selling low and buying-up? Would you be interested?  Answer: YES.  Ok – here is how it works.  We sell your $350,000 house that you thought was worth $375,000 at the top of the market a year ago.  We put that on the market for $325,000 to get it sold fast - right now.  Audible sigh and slight groan:  Now I show them 4-6 homes in the 700-900k range that I know are valued higher or could be purchased at bargain prices - as much as $200,000 under market highs.   Big smile and “That’s cool!” comment.

Now – all this sounds easy but it requires extensive market knowledge of the Boise and Eagle Idaho real estate and experience in negotiating with banks, builders and attorneys. .  When I say experience I mean more than a decade as Realtor.  Remember 80% of all Realtors have never worked in a market like we have now. That was about eight years ago.  So don’t you be the guinea pig.  And by market knowledge your agent should be able to demonstrate why a property is a good value and why it is a good investment for you and your family.

I have just sketched out a few basics here.  Feel free to drop me a line or leave a comment if you have general question or if you would like to talk about your personal goal.