Whether you know it or not, Washington state is closer to home than you think. Have you ever received a package from Amazon or logged onto a Microsoft computer? How about sipping a latte from Starbucks? All of these businesses started in Washington. With its thriving economy, diverse culture, and breathtaking landscapes, it’s no wonder Washington has become a prime destination for international real estate investors. Not to mention, Washington state does not leverage a personal income tax, making it an even more appealing destination for foreign investors. Purchasing a Washington investment property as a non-U.S. citizen involves navigating complex legal, financial, and market-specific challenges. This guide provides foreign investors with a comprehensive overview of the Washington real estate market and what you need to know as a foreign investor.
We are providing the following discussion to you for informational purposes only. All investments, including real estate, involve risk, and we encourage you to invest carefully. The information in this article is not intended to replace or serve as a substitute for any legal, real estate, tax, or other professional advice or service. You should consult with a professional in the respective legal, tax, accounting, real estate, or other professional area before making any decisions or entering into any contracts relating to a rental property.
Washington's real estate market is diverse and full of potential. Cities like Seattle, Bellevue, and Spokane are particularly attractive for investment, offering everything from luxury condos to multifamily homes. The demand for housing in Washington remains strong, driven by the state’s booming tech industry, high quality of life, and robust job market. It is important to highlight that major employers such as Amazon, Microsoft, Boeing, Starbucks, Costco, and Expedia contribute significantly to the region's economic stability and job growth, making it a prime location for real estate investment.
For foreign investors, understanding each area’s unique dynamics is essential. With its tech-driven economy, Seattle offers high demand for rental properties, making it ideal for long-term rental income. Conversely, smaller cities like Tacoma provide more affordable options with the potential for significant appreciation over time.
As the largest city in Washington, Seattle offers a strong job market, beautiful recreational areas, and a diverse economy. Seattle’s population is growing fast, too – some studies predict that Seattle’s population will surpass that of San Francisco by 2040. All of these factors, in addition to the fact that home prices have appreciated 9.4% year-over-year, make Seattle a prime location for rental property investments.
Tacoma is an up-and-coming city with a growing economy and affordable real estate prices compared to Seattle. In fact, new figures show that it is one of Washington’s most populous cities– with the population estimated to be at 225,100. This is supported by a higher birth rate and more new residents.
Located in eastern Washington, Spokane offers a combination of affordability, a robust job market, and a thriving tourism industry. With an average home value of $389,697, Spokane presents a more budget-friendly option compared to other major cities in the state. The city's popularity as a tourist destination also contributes to increased demand for short-term rentals.
For investors with a larger budget, Bellevue, an affluent suburb of Seattle, presents an attractive option. Bellevue offers high-quality rental properties with strong potential for appreciation and average monthly rents around $3,300.
Not the Canadian city. Vancouver, located in Clark County, is a growing city with a strong economy and affordable housing options. It is also attracting numerous tech companies and startups that create job opportunities for skilled workers. Its strategic location along major highways and railroads enhances commerce and makes it a hub for business expansion. Its proximity to Portland, Oregon, also makes it an attractive location for commuters, especially considering median home prices are around 11.9% lower.
Choosing the right property type is critical for maximizing your investment. Washington offers a variety of options, including single-family homes, multi-family units, condominiums, and commercial properties. The choice should align with your investment goals, budget, and risk tolerance.
Careful research and market analysis are essential before deciding what type of property you are interested in buying.
It’s important to be aware of common documentation requirements that lenders have for foreign nationals. That way, you can keep these in mind and prepare for requests as you begin your investment property search. Many lenders will request the following documents:
When buying investment property in the state of Washington, there are many legal and tax questions to consider. While you should discuss all considerations with legal and tax professionals, here are some terms to be aware of:
Explore your options with Waltz
Investing in Washington’s real estate market can be rewarding and challenging for a foreigner. With careful planning and guidance, your investment in Washington real estate can yield substantial returns.
Waltz is an ideal partner if you’re a foreign national interested in buying investment real estate in Washington state. As mentioned before, you’ll need a registered business in order to obtain a DSCR loan. As part of our Investor Kit, we help you get started by providing you with:
Fill out our investor interest form to learn more about our comprehensive services and how we can help you achieve your Washington real estate investment goals.