Rentals in Hillsboro>Question Details

Mindy, Home Owner in 94306

Considering Hillsboro for investment property. Howz the economy in 2012 future, average rate of vacancy? Average duration of tenancy for plex

Asked by Mindy, 94306 Tue Sep 25, 2012

or condo?

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Answers

4
Hi Mindy

It almost doesn't get any better, Like Christopher says with Intel, Kaiser and Genetech hiring lots of people the home prices and rates are at the bottom.

Here is Marcus & Millichap rental report highlights for Portland Metro 3rd quarter
"Portland Lifestyle Remains Attractive to Renters"

2012 Annual Apartment Forecast

1.9% increase
in total
employment

Employment: Employers in the Portland metro area will hire 19,000 workers this year, marking a 1.9 percent increase in total employment. In 2011, the total job growth was 1.3 percent with 12,300 new hires.

1,000 units
will be
completed

Construction: Developers will complete 1,000 units through 2012, at a 1 percent increase to cur- rent stock. Last year, just 71 rental units were brought online, marking the lowest annual addition to inventory in the last decade.

50 basis point
decrease in
vacancy

Vacancy: Despite a significant addition to total inventory, the vacancy rate for rentals in Portland will decline 50 basis points this year to 2.2 percent. Last year, metrowide vacancy descended 180 basis points.

2.8%
increase in
asking rents

Rents: In 2012, asking rents will rise 3.8 percent to $870 per month. Effective rents will advance 4.6 percent to $800 per month. Asking and effective rents charted respective gains of 2.2 and 2.7 percent last year.

If you need help give me a call, I live in the area and know the market very well. To look for homes in Hillsboro click on this link.

http://www.quality-real-estate-service.com/hillsborohomesfor…



Kevin Sucher
Principal Broker
503-214-4139
ksucher@prunw.com
1 vote Thank Flag Link Tue Sep 25, 2012
Accurate rental data is not easy to obtain and there are paid services for that.

Plexes are always better than SFR more units softens your vacancy rate. A good rule is to plan on a 20% vacancy rate.

Investing in rentals is not all about the rents and the rents are subjective to many factors they are cyclical and you have very little control over them. Having a rental is about cash flow, appreciation, after tax ROI and equity generation.

http://www.quality-real-estate-service.com/hillsborohomesfor…

Kevin Sucher
Principal Broker
503-214-4139
ksucher@prunw.com
0 votes Thank Flag Link Thu Sep 27, 2012
Hi Kevin and Christopher, thanks for your responses. It's encouraging to know. Another option for me is to buy near downtown, a plex property or something. What is the demographic of renters in this area (students or professionals) and is it a good idea? Has there been rent $$ increase in past couple of years? If so by how much?

Thanks for providing the report details.
0 votes Thank Flag Link Wed Sep 26, 2012
Intel is building a new fab. plant and should bring in 1,200 new jobs in the next 3 years. Kaiser is finishing their new "general" hospital and Genetech just got FDA approval to start manufacturing and will start building on more of their property. When jobs are created, housing is needed. As for occupancy rates, they are 100% with a waiting list (see Nexus and Lions Gate). I am the community manager of Arbor Pass, a new home condo community which is in walking distance of shops, work and the Max. Our prices start out in the $120s.
0 votes Thank Flag Link Tue Sep 25, 2012
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