Investing in the city outskirts can be quite a profitable decision. When you invest in suburbs of Milwaukee, you open the door for many new opportunities. With just a few skills, you may make a fortune!
In the latest years, more and more people invest in suburbs. A lot of people, mostly Millennials, decide to move away from the cities and to find a more affordable, peaceful location. This means that finding tenants or potential buyers in the suburbs can be an easy task. But this kind of investing also has some downturns. Here are some pros and cons of investing in properties on the edge of the city.
1. More Long-Term Tenants
Most people who move to suburbs want to stay there for a long time. This means that you are more likely to find long-term tenants and that you’ll have less turnover. Not only does this mean more pay checks for the investor, but long-term tenants will create bond with the property, so they will take better care of it. This will create less repair expenses for you. And who knows, some tenants may even make improvements on the property! Long-term tenants are a dream come true for most investors, and suburbs might be the way to find them.
2. You Can Get a Bigger Property
The price of a square foot is usually way lower on the outskirts of a city compared to its downtown. When you invest in suburbs, you can get a bigger house for the same price. This means that for an affordable price, you can get an attractive, profitable property. Also, suburban houses tend to have a big outdoor space. Even if there isn’t a big yard, some kind of outdoor space is almost mandatory in the suburbs. This can add to the curb appeal and overall attractiveness of the property.
3. They Aren’t that Far from the City
Compared to rural areas or farmlands, suburbs are closer to the city. Usually, you can reach the downtown in up to an hour ride. This makes it easy for residents to reach that club or gallery they love. This is a perfect combination of peace and quiet and entertainment and city glamour. When you invest in suburbs of Milwaukee you are allowing yourself to get the best of both worlds. Just make sure your property is near to some public transportation!
4. More Income
Typically, suburban families have several income earners. This means they have a larger budget and are prepared to spend more. This can also mean more profit for real estate investors. Families with more income tend to buy bigger properties, so clients outside of the city are usually more profitable. Wealthier families are also more likely to own a car, which is a great advantage as the distance from the railroad or a bus station won’t make a difference for them.
5. Less Crime
Suburbs have a lower crime rate compared to urban areas. This is a statistic that is found not only in the US, but all around the world. Researches have shown that urban areas have more violent crimes, thefts and property crimes. Also, police brutality is a problem more commonly seen in the city’s downtown. At the same time, they are quieter, while not being as isolated as rural areas. Safety is a big concern for most renters and homebuyers, which is one of the main reasons why people are more willing to invest in suburbs in the latest years.
1. Fewer renters
If your plan is to focus solely on rental properties, you should know that even though suburbs tenants are looking for a place to stay long-term, there are less of them compared to cities. You have to make a plan and to invest smart. Finding the right location is the key, as this can make a huge change in demand. The more appealing the property, the more tenants you’ll find. Also, try renting out office homes or commercial properties as well.
2. Less Variety
If you are thinking about diversifying your portfolio, investing in suburbs probably isn’t a good idea. Most properties you can find are single-family homes or two-family homes. Multi-family homes or apartment buildings are quite rare to find, so don’t waste time looking for them. Also, there are limited options when it comes to retail or office spaces. This is another reason why you have to work hard to make your property stand out, once you’ve found it.
3. Less Public Transportation
If your tenants or homebuyers don’t own cars, they’ll find it hard to get by in the suburbs. Public transportation is rare, sometimes even non-existent. Homes that are closer to the railroads or bus stations will get more attentions. If your property is far from any means of public transportation, this may be a turn off for many potential buyers or renters. Location is the key when you choose to invest in suburbs.
4. Suburbs Can Be Boring
Let’s face it. There isn’t much to do in the suburbs. Nightlife is rare and some of them don’t even have a theater, let alone a gallery. Even though this isn’t true for some suburbs, it’s still a stereotype that many believe in. If you invest in suburbs, be sure your property is close to some means of entertainment, and make your potential renters and buyers aware of that. Advertise local activities and restaurants and let everyone know that suburbs don’t have to be boring.