When and where should you begin your real estate investing journey? Is your family ready and excited to own a new home? Well, today happens to be perfect for investing in your family dream home – and smart investment. The time is now, and your wait is over.
What you should know before you buy.
- These are the priorities and parameters Developers’ study, measure and research seriously. You’ll see in the following list what they deem imperative information before they buy a parcel for residential development. Good information for the home buyer too.
What to Look For
Let’s talk a little bit about what makes Developers think that an area is so great.
Real estate investing can be tricky, and it’s important to find the right balance between demand and existing value. For this, we look at the growth trends in specific areas to see what is popular and booming right now.
However, it doesn’t always mean those places that have the most attractive growth now. While these cities certainly look enticing, they also look attractive to everyone else. Meaning, the market could easily be oversaturated and overpriced in a few short years, leading to an investment that stalls or even loses value when the bubble eventually bursts.
Instead, you should look at the projected growth in a specific area, to see where that market is expected to be in three, five, or 10 years. Medium-growth markets are much more sustainable in the long-term and provide the platform to be attractive both now and years down the line.
- Hermiston is now the largest city in Umatilla County OR. It promises continued accelerated growth. The average rate of growth leads the state of Oregon
- It’s true that this place is still somewhat small, at just over 18,000 people, but with these trends, it won’t be small for much longer.
- Ongoing housing shortage in Hermiston has increased existing home prices and increased the cost to rent a home.
Jobs Added and Planned
The more jobs an area can offer–especially from popular, reliable, or high-paying companies–the more people are willing to move and buy homes there. So, it is important to consider moving to / investing in a market that has a great job market now, has recently become a hub for a large company, or is expected to see the addition of a reliable industry soon.
For instance, companies like Amazon are setting up hubs all around the country, with cities vying to be the next chosen location. The addition of a company like this to a housing market means guaranteed jobs, area growth, and an influx of newcomers and new homebuyers alike.
- And in fact, Hermiston has been chosen as the location for Amazon to build a new data center near Hermiston! The center will house servers for the popular online retailer and will bring construction jobs, and around 40 permanent jobs to the area. Housing may also see jump due to the new jobs being created. They’ll need data techs, management positions and more.
- Lamb Weston and the City of Hermiston welcomed Oregon Gov. Kate Brown, who got a look at the site where workers are expanding to build a $250 million facility. Located on Westland Road in Hermiston, the new factory opened in spring 2019 and is expected to create 170 new jobs. Director of Communication from Lamb Weston said the nearby Boardman plant employs about 400.
- WinCo Foods has plans to build a distribution warehouse and Costco is ‘likely’ to be adding one very near Hermiston
- –Future Job Growth in Hermiston: estimated at 35.3%.
Vacancy Rate and Current Home Prices
An area with promising growth doesn’t mean that you should invest in real estate there. Investing in a market that already has a high vacancy rate or extremely high housing prices could mean owning an investment property that is difficult to fill. If vacancy rate is high in an area (above 8%), even if the economy is booming, you will inevitably struggle to find a balance between occupancy and profitability.
- The Homeowner Vacancy Rate in Hermiston is 1% (LOW) – which means this is an excellent area for buying a home for an investment rental property to generate long term passive income – rental properties are in high demand so there is very little competition for renters in need.
- The Rental Market in Hermiston (zip 97838):
- Renters make up 35.8% of the Hermiston population
- – 0.7% of houses and apartments in Hermiston (zip 97838), are available to rent
- The Average net worth of families who rent is around $5,000 compared to the average net worth of homeowners of around $250,000.
- The American dream is home ownership and Homeownership means living the life you dream of with family and friends
The neighborhoods that appeal to you will largely be a matter of personal choice. However, a truly great neighborhood will have a few key factors: accessibility, appearance, and amenities. Your neighborhood may also dictate the size of the lot on which your house is built. In terms of accessibility, you should look for a neighborhood that is situated near your city’s major routes and that has more than one point of entry. Commuting to and from work is a big part of many people’s day, so a house with easy access will be more desirable than one that is tucked away and can only be accessed by one route.
The appearance of the neighborhood is also important. Large trees, landscaping, and nearby green or community spaces tend to be desirable.
A great neighborhood should also include important amenities such as grocery stores, shops, and restaurants. Most people like to frequent places that are convenient – if you need to drive a great distance to get to anything, this is likely to make your house less attractive. Schools are another important amenity – even if you don’t plan to have kids, if you want to sell your home this is something many buyers will be on the lookout for. Future and planned amenities are also a key factor in determining viability of Developing
- At MonteVista Homes, we realize the importance that neighborhoods make in any home buying decision – whether for investment, and/or a single-family home. Creating Neighborhoods is our passion. We recognize that “well-being” encompasses body, mind and spirit. We know that social interaction and camaraderie are as important to personal growth as physical activity and food. MonteVista Homes is creating communities where folks can build and renew relationships with friends, family, and neighbors. Where all are welcomed home.
- There are 42 restaurants, cafes, and snack shops in Hermiston. There are 12 Grocery Stores in and around downtown Hermiston, including Safeway and Walmart Super Center. Plus, several specialty grocers for added variety. 9 national and local hotels /motels /inns – all in the downtown area. A growing number and wide variety of restaurants, casual dining, fast food, dine dining and sandwich shops.
Home site Location
The next thing you need to consider is where the house is located. In this instance, there are a few things you should watch out for. For example, if your home is on a busy road, you will probably get it for a lower price, but it will also be more difficult to sell down the road. The same may hold true for houses that stand next to or back onto commercial property, such as a grocery store or gas station, or houses on streets that get an unusual amount of parking traffic and parked cars, such as those near large churches or community centers. Therefore, many such homes are rentals.
So, as it turns out, Hermiston Oregon is an outstanding choice for Residential Home Buying- and an excellent place to live in the beauty and wonder of Eastern Oregon. We hope to see you there soon. We’ll show you around.