Moving to Seattle for a job. Seeking advice on Rent vs Buy

[Louis Wong]

Hi all,

First post on BiggerPockets, but I've had an interest in real estate for about a year now.

I'm moving from the bay area to Seattle for a job in downtown. I was thinking of purchasing a plex and live in one unit and have the other unit's rent cover a good amount of the mortgage.

I've been getting some mixed signals on buying vs renting, and hopefully some experts can share their insights on it.

Some of the arguments that I've received for renting first is:

• I don't really know the areas in Seattle, and buying a property will lock me down in a long and big investment. I should really take my time to find a place I really like and get to know the areas.
• It's not that expensive to rent at the moment. ~12k spent on a 12 month lease.
• The housing market might head to a correction.

Some of the arguments for buying is:

• Seattle's housing market is really hot. Even though prices are flatlining, property is still being bought up fast.
• With the help from renting out other units, the price of the mortgage could be cheaper than renting.
• The property I'm interested in may not be there anymore.

I'm interested in a property in North Beacon Hill. I really like that it's close to downtown, international district, and has a Link train station. I'm not too sure why it's relatively cheaper than most areas. Is it bad on crime?

Any insight is appreciated. I'm also open to connecting to anyone with similar interests or anyone willing to pick up a mentee for real estate investment in Seattle.

Thanks.

Louis

[Jake Alger]

Hi Louis,

I’m a broker in the Seattle area and know it can be tough to decide on renting vs buying. Each point you’ve listed is valid for both sides of the rent vs buy argument. 

It’s true, the value in our market is in the land and given that there has been much higher demand than supply the last few years, prices have gone crazy. It’s been a tamer and mellower market this summer with houses staying on the market longer, but is really a function of price point. You still have some homes selling rediculously fast, but far less. We’ll see soon if that continues to be the case.

Rents have doubled in the last 5 years and will likely remain high. Rent prices in some areas are still affordable but they can have their drawbacks. It would be important to find a neighborhood that fits your lifestyle and needs to see if renting is viable for you. 

I’d be more than happy to connect with you and discuss your needs. I’ll send you a PM and perhaps we can chat further. 

- Jake