What do millennials look for in a location? Under $300,000 is the sweet spot for Millennial buyers, they also want great schools, easy commutes to work, and local amenities. If you buy in a location that is equally attractive to the largest pool of buyers you will have a much easier time when you go to sell. The average person moves every 7 years, so if you pay attention to who your buyer is likely to be in the future it will make selling it down the line a lot easier. When you're buying a house you should do so with a plan. The number of millennials who are choosing to buy instead of renting is growing. Is the area you are buying in attractive to this demographic? If so, that is a strong indicator you are buying in a location that is going to have strong demand, and demand raises real estate prices. Understanding that millennials represent over 60% of buyers is extremely important when searching for a location. Safe neighborhoods are good to consider, even more, important though is to ask the question 'where will this neighborhood be in five years?' Millennials Just because the neighborhood is safe right now, doesn't mean it's going to be safe in five years.Īlternatively, just because the neighborhood isn't safe right now, doesn't mean it won't be safe in five years. ![]() This is what I call reverse-engineering the future of the location you are buying a home in.Ī lot of Real Estate Agents will tell you 'buy in a safe neighborhood' and while this makes sense it is missing the fundamentals of real estate investing. People need to stop looking at the current status of the neighborhood and start paying attention to the future of the neighborhood. They are great cities to live in! Everyone seemingly want to live downtown, especially millennials and millennials make up more than 60% of all buyers. Raleigh and Charlotte are some of the most desirable locations for millennials, young families, and retirees. This home is less than a mile from Downtown Raleigh, NC, and with the growth of the city, there are plenty of buyers raising their hands to buy in this location. Meaning the neighborhood is less likely to depreciate since it's already considered 'bad' and this reduces risk. Guess what buying in a 'bad neighborhood' offers, that buying in an already 'good neighborhood' doesn't? A higher floor. This neighborhood is now one of the more desirable locations, especially for millennials. UPDATE: This home is now estimated at 325,000 (in 2021). There's another, smaller home, listed for sale at $319,000 on my street as well (it's overpriced). ![]() Ten months later I am up an estimated $63,000, and considering a less desirable home down the street sold for $200,000 in three hours on the market, it's up more than that. Let's start with a real-life example of a home I purchased in a 'bad neighborhood.' ![]() For the best investment, you want a neighborhood on the verge of being 'next' best. Do your research when it comes to neighborhoods as well just keep in mind most of the best neighborhoods are going to be more expensive investments. Well, guess what, neighborhoods change, just like everything else.ĭon't buy in a good or bad neighborhood, buy in a neighborhood that you can see the future of. Reverse Engineer the Future of the NeighborhoodĪnyone who doesn't understand how the real estate market works will tell you to buy in a good/safe neighborhood.
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