Investing in real estate can be viewed in a number of different ways. If you own a home, you have already invested in real estate. Whether you bought the home with the intent of making money on it, or you bought the home because it’s pretty, real estate purchases should always be treated as investments because of the potential for monetary gain. There are plenty of people that make real estate investing their main source of income, and I believe that it is more possible than you might think. Louisville’s Germantown area, roughly defined as the 40217 zip code, is a prime example of a neighborhood that makes investors out of people that aren’t planning on it. Here’s why:
First Timers Buy Cheap
According to the National Association of Realtors, about 40% of home buyers each year are first-time home buyers. The average age of a first-time home buyer is 31 with a median household income of around $61,000. Most first timers these days will purchase a home well below the amount that the bank pre-approves them for, mainly because they are scared of losing their house, and rightfully so. I never recommend that someone max out their budget, especially on their first home. Life happens sometimes, and you need to be prepared to make adjustments if you have to. If you can buy a home that is priced lower and needs a little updating, you should be able to realize a sweet profit when you go to sell that home. The average price of a sold home in Germantown for 2013 was $112,530, which is up from 2012’s average of $107,336. For average first-time home buyers and even below average buyers, this is extremely affordable, especially noting the proximity to the Highlands, downtown, and U of L.
The Sky’s the Limit
The highest sale in Germantown during 2013 was $229,000, while the lowest was $75,000! There have already been at least two sales in Germantown this year that were even lower than $75,000. This is not to say that you can buy a home for nothing and immediately turn it into a $230,000 home, but it should show you that this is an area of Louisville where if you make the right moves, your first home can turn into a serious down payment on a second home.
What are the right moves?
My job as a Realtor is not to assess the structural integrity of a home. My job is not to design a new layout for your first home so that you can sell it for a profit. My job is to know the market and use that market knowledge to assist buyers in making a wise real estate investment, whether it’s their first home or their forty-first home. I need to make sure that you do not overpay for your home. I also need to make sure that you know what will improve the home’s value, and where that improvement might turn into an over-improvement. There are so many moves that you can make, so many factors involved that combine to create the perfect formula for a “good deal”.
If you are thinking about buying or selling a home in Louisville, I would love to speak with you about options. If you already own a home and you’re thinking about purchasing an investment property, call me or email me to find out how. 502.509.9278 – firstname.lastname@example.org