North King County vs. South King County appreciation

[Jack B.]

I read in the latest NWMLS update that North King County is appreciating at 28% while south King County is appreciating at 11%. 

All of my houses are in South King County. :-(

What cities make up North King County that I can find homes for 300-400K?

I found this map that seems to help: https://www.seattletimes.com/business/real-estate/king-county-housing-market-kicks-off-2018-even-hotter-than-before-as-seattle-breaks-price-record/

[Peter Nelson]

Jack, I would recommend not making a knee-jerk reaction based on one article.  It is true that the North end historically has appreciated higher than the South end.  But there are LOTS of other factors to consider.  One of the biggest (if you are local) is where you live.  I live in the south end and our portfolio is located entirely in Seattle and south.  If you are in the south end do you really want to drive to Duvall to rebuild a leaky toilet?

Another thing to consider is specific neighborhoods.  For example, I am bullish on the Rainier Valley.  As it gets gentrified it may see appreciation far greater than the north or south ends.

Finally, remember the 3 rules of real estate -- location, location, location.  A well-placed property in the south end can knock the doors off a poorly placed north end property.  (Sorry about the pun!)

Also, don't get greedy. If you put 20% down and have an 80% mortgage then you are leveraged 5:1. That means your lowly 11% appreciation is returning 55% ROI. I don't know about you, but 55% ROI is just fine by me! I put a video together explaining all this. Search youtube on our Full Service Property Management channel if you want to watch the video.

In a nutshell: buy and hold.