An upscale suburb of Minneapolis, Edina is a town of approximately 50,000 residents and one of the best places to live in the state. Due to this—and various other reasons—investing in Edina real estate is a smart idea for those who want to diversify their portfolios and increase their wealth. Interested in learning more? Here are the most compelling reasons why buying homes for sale in Edina is the perfect investment.
1. Continued Low Mortgage Interest Rates
Mortgage interest rates hit rock bottom during the heart of the pandemic and, after a short jump, have again plummeted. The interest rates on a 30-year fixed interest loan are hovering around 3% while a 15-year fixed loan is closer to 2.3%. Though Edina real estate experts don’t expect rates to rise significantly before the end of the year, it’s a good idea to buy now before any increases take place. If you have a good enough credit score to qualify for the best rates, you could potentially save yourself hundreds of dollars on a monthly mortgage payment and maximize your ability to make money on a rental or build equity at an accelerated rate.
2. Rising Sale Prices
When sale prices rise in an area, it brings up the value of real estate for all homeowners. The current median price of homes for sale in Edina is $615,500, up a staggering 39% from one year ago. When you get your hands on Edina real estate, you can expect that the value will continue to rise and that you will be able to sell your investment for a sizable profit should you choose to do so in the future.
3. Low Inventory
Low inventory and high buyer interest have created a strong seller’s Edina real estate market. There are currently 312 homes for sale ranging in price from $119,000 for a one bedroom, one bathroom apartment to $3.75 million for a five bedroom, six bathroom property with an outdoor pool and prime location on Minnehaha Creek. Though it may be a bit more of a challenge to find homes for sale in Edina that meet your investment needs, this lack of inventory means that values and sale prices will continue to increase, maximizing the amount of equity you will be able to build.
4. Continued Interest in Suburbs
The pandemic changed the way we live and work. When COVID struck and the majority of Americans began working from home, there was a mass exodus from metro areas as people sought out quiet spaces with extra room to spread out and lower housing costs and living expenses. Though the migration from Minneapolis was not as strong as it was in some other areas like Manhattan and Los Angeles, there were still plenty of people who left the crowded city in search of less packed suburbs like Edina.
Though many people have returned to their offices either full or part-time, there are still plenty who are able to work from home or who are willing to commute in order to keep the peaceful lifestyle they’ve become accustomed to in the past year and a half. With a location only 14 miles from downtown Minneapolis, Edina is the perfect suburban location for those who work in the city. This fact will ensure that, if you decide to rent out the Edina real estate you buy, you will always have commuters who are interested in leasing homes. Or, if you choose to flip your investment, you will have plenty of prospective buyers.
Tips on Buying Homes for Sale in Edina
Are you interested in maximizing your real estate investment by purchasing homes for sale in Edina? The competitive market may lead to some challenges when attempting to buy, but these tips will help you be successful:
◾ Work with an experienced Edina real estate agent. When you work with a well-connected agent, you can get notified of listings early—either as soon as they hit the market or even prior to being listed. A good agent can also connect you with property that is for sale off-market and not offered to the general public. Your Edina real estate professional will also be able to help you craft an offer that will be appealing to sellers and represent you in a multiple-offer or bidding war scenario.
◾ Get pre-approved for a loan. Are you getting a mortgage or other loan to pay for your real estate investment? Make sure you get confirmation of your private loan or a pre-approval letter from a mortgage lender before you start looking at homes for sale in Edina. This will show the seller you’re a good-faith buyer and will increase the odds that your offer will be accepted should you choose to make one.
◾ Consider dropping contingencies. In a competitive real estate market, you’ll have to make an initial offer that is near, at, or even over the asking price. You’ll also have to consider dropping common contingencies based on the results of an appraisal or inspection or on your ability to get financing. Though this does open you up to certain risks, it may be worth it to obtain a piece of highly valuable Edina real estate.
◾ Know what you want in a property. Before you begin looking at homes for sale in Edina, you need to know what you want in an investment property. Do you want a fixer-upper that you can flip and make a profit on? A condo or apartment that you can quickly lease out without making any improvements? A single-family home that your family can live in until you decide to sell for a profit? Once you know what you’re looking for, you can convey this to your agent so he or she can narrow down the properties to show you.
Investing in Edina real estate is a smart move for anyone who wants to increase their wealth and diversify their portfolio. If you’re ready to get started on the home search, reach out to local agent Steve Schmitz for expert assistance.