The One Reason To Buy Homes Close To Lake Nokomis Vs. The Rest Of Minneapolis
So heres the thing, its always a good idea to buy a home thats priced within the lowest 10% of the market in a good neighborhood. If the median value of homes sits at about $280,000, you should be looking for something listed for less than $180,000.
For the sake of argument, lets look at the Northrup, Field, and Page (South of 46 th St.) neighborhoods three great communities that, in my opinion, are grossly over-looked in the market right now. Coincidentally or not so coincidentally the median value of homes in that area sits at about $280,000.
Now, each and every home in the area even those valued at less than $180,000 comes with the benefits of the location. Homes within the lowest 10% of the market will have the same access to the lake, nearby creeks, good schools, beautiful views, and walkability to the 48th and Chicago area as those that land at, or above, the median value. Youll get all of the positive aspects of the neighborhood, but youll get them for $100,000 less and your monthly mortgage payments will be $800 lower as well. To add to that, lets say the market shifts or the economy takes a turn for the worse. I hope it doesnt happen, but if it does you will be better off owning a home in the lower price range. For example, if you owned a home priced around $175,000, it would garner more demand than one priced at $280,000 assuming they are equal in condition simply because it would be more affordable to those looking to buy.
Ill be honest, lower-priced homes will likely need some work but you shouldnt let that dissuade you from looking at the more affordable end of the market. Putting some extra money and time into a home can raise the value while also allowing you to tailor the space to your own taste and lifestyle. It is possible that after putting $30,000 into a property that is currently on the market for $175,000, that it would be worth about $220,000 and it would be an awesome place to live!
In the end, my point is that it is always a good idea to look for a home in a good neighborhood that is also priced below the median value of the area. It may need some work done, but the investment of your money and time will be worth it after all is said and done.