Sunday, January 11, 2015

Is Buying a Home in Minneapolis/St Paul a Good Investment in 2015?

Owning a home is still the American Dream. But is buying a home in the Twin Cities metro area a good investment in 2015? According to it is!

Forbes just released the list of the top 20 cities of where investors should buy housing in 2015. Minneapolis/St. Paul/Bloomington came in at #17. These are all cities with strong population and job growth and relatively affordable home prices.  According to Forbes research, Twin Cities market is currently undervalued by about 7% and has a good rental value. 

So if buying is good for an investor, is it also good for the average first time home buyer? Absolutely! 

But buying a home is an investment.  So buy smart and treat your purchase like the investment it is. 

Key considerations of a home purchase

  • Buy Smart--Price, Interest rate, Type of Mortgage and Resale Potential are all part of the equation. 
  • Maintain and Protect Your Investment--Adequate insurance and scheduled maintenance are essential. 
  • Don’t Jeopardize Your Investment--Be cautious when considering an equity loan.
One of my favorite type of client to work with as a REALTOR® is a first time home buyer. It is rewarding to educate them on How to Buy Smart. Buying smart is not as simple a foreclosed property at a good price. It is a combination of a buying at a good price with a mortgage at a low interest rate; preferably with a fixed rate of interest so it will not fluctuate into a payment that is not affordable.  

But it goes beyond the financials. A smart home buyer, always considers resale. If a home has negatives that cannot be repaired or replaced, it might not be the best investment. Homes on busy roads, near power lines, industrial areas, gun ranges, rail road tracks, cemeteries and airports could be considered less desirable to many buyers. I had one buyer who wanted to be miles away from any golf course due to the chemicals applied daily to keep the grass green. Granted some people would not mind any of these locations, but a location cannot be changed so it is important to weigh any negatives carefully.

Likewise an unusual floor plan or unique style to the home can be a deterrent. I showed a home once with the only kitchen in house on the lower level of the home. My buyers weren’t impressed and thought it odd. And honestly in all my years as a REALTOR® showing hundreds of homes, I’ve only seen one home with the main kitchen in the basement.

The best way for an home buyer to avoid a misstep in a housing investment is to have a good team of professionals to assist you through the entire home purchasing process. I partner with my clients and help them through every step of the process from loan preapproval through closing day. With an knowledgeable professional at your side, purchasing smart is much easier. 

Is 2015 the year YOU will INVEST IN YOUR FIRST HOME? 
Let me be your professional guide. If you are buying, selling or relocating to Minnesota and need help from a professional REALTOR®, give me, Teri Eckholm of RE/MAX Results, a call or visit my website for a FREE Home Buyer Success Guide or FREE Home Value Report. I specialize in acreage and lakeshore properties in the north and east Twin Cities metro area including Ham Lake, Lino Lakes and all communities in the Forest Lake School District! Serving Anoka, Chisago, Ramsey and Washington Counties in Minnesota.

Copyright 2015