Will a Seattle area duplex property appreciate more than a condo?

October 18th, 2009 Jacquie Cliff - Real Estate Agent and Loan Officer

With prices in the Seattle area low many first time home buyers are coming back to the market to find a property.  The question is whether it is better to buy a heavily discounted condo or buy a duplex property and take advantage of having tenants help pay part of the mortgage.

We all know that over the last two years condo prices have taken a significant hit, while the prices of duplexes have remained more stable.  This would mean to me that as the economy recovers, we will see stronger increases in the condo prices vs. the price of duplex properties.

Does this mean that buying a duplex property instead of a condo is not a good idea?  No, in fact the reduced prices on duplexes makes it a great time to buy.  A quick search of the MLS reveals a good number of duplex properties across King and Snohomish counties all priced in the $200,000 – $300,000 range.  So you can buy more property and still have about the same monthly payment or even have it be a little less depending on your loan!

This does mean more work, but it still gives you a home with a yard instead of a box in the sky, and long term it means that you have control of an income producing property for a very small amount down in comparison to conventional multi-family loans.  In addition to that, but because you now own a rental property, you are in business for yourself which means you can deduct many more things on your taxes.  Find a good CPA or Tax Attorney and ask them what it can do for you!

Would I recommend a duplex over a condo based on straight appreciation?  No, but appreciation is only one factor in evaluating if a property is a good deal.  Too many people got short sighted on that during the boom, and forgot that equity building and cash flow are important too.  For those willing to do a little extra work, I would definitely recommend a duplex over a condo as the property to purchase for a first time home.

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