My good friend, Michael, and I both lived and worked in Chicago for years. He became a real estate agent after a time, whereas I looked for a way to work in real estate without a license. Of course, I found my way by becoming an investor and, over time, did quite well for myself. Eventually, I moved back home to the now somewhat-hip neighborhood of Bates-Hendricks and started buying property to renovate and resell there and in neighborhoods like it. Before long, Michael moved back to Indy as well. But, not wanting to go back to being an agent, he asked me what I thought about the market here and whether he should start investing, too. I told him that I could think of several reasons why he should invest in Indianapolis real estate—and, to keep from holding him up, I’d narrow my list to five.
Why You Should Invest in Indianapolis Real Estate Now
In some ways, my talk with Michael ended up being a kind of beginner’s guide to real estate investing that could be applied to a variety of markets around the U.S., not just Indianapolis. Wherever you invest, you always want to take into consideration, for example, the state of the local housing market and whether or not realizing good returns are possible. But, even an area’s unemployment rate, cost of living, and population growth matter since these factors often dictate whether a long-term career in real estate investing is achievable. So, it’s in taking a broad view of your market’s potential that you get a good look at what’s really possible.
Of course, keeping all of that in mind, the Circle City stands out in many ways. And, we’re going to take a closer look at the five considerations mentioned above since they’re some of the most critical to consider when buying, renovating, and selling—or renting—investment property.
- Stable housing market. The housing market in Indianapolis is a relatively stable one compared to most other cities in the country. It didn’t fall as far as other markets during the housing crisis and so it didn’t take as long to bounce back. And, it’s bounced back with a bang. For the third straight quarter this year alone, foreclosures are down by another 50%, according to the MIBOR Realtor® Association, and traditional sales are up. Median sales prices for all types of sales, and properties, are up as well. Plus, sellers are getting close to 100% of their asking price. On the same token, Indy’s housing market hasn’t become inflated like other major metropolitan areas. So, while there are always risks to investing in residential property, Indianapolis remains poised for more short-term growth and long-term stability—which could position your investment business for the same.
- Low unemployment. Not only is Indy’s unemployment rate below the national average, but it is also significantly and regularly less than most cities in the U.S. Thanks in large part to companies that are now headquartered in Indianapolis, like Anthem, Inc. and Angie’s List, between 96.5% and 97.2% of the city’s residents have been employed this year, according to the Bureau of Labor Statistics. But, as impressive as these recent numbers are, employment in the area has historically been strong. And, it’s likely to stay that way as the industries of information technology and the biosciences continue to expand their hiring reach into the Circle City. For you, that means that Indianapolis could become one of the best places to buy rental property or houses to renovate and resell since most people should be able, and eager, to meet the cost of their housing obligations.
- Low cost of living. Considerably more affordable than cities like New York and San Francisco, the cost of living in Indianapolis is also lower than many of its Midwestern counterparts. In fact, affordability is so high in Indy that it frequently holds a spot among the top ten places that national news outlets consider one of the least expensive to live. And, when mortgage payments or rent, taxes, and utilities are low—as they tend to be in Indianapolis—the number of individuals and families who want to stay in or move to the area is high since their money goes further. Assuming you can keep all of your investment business expenses low as well, including the ongoing costs you’ll incur should you choose to be a landlord, you shouldn’t have any trouble selling your homes or filling your vacancies at market rates that attract a lot of competition from folks looking for housing.
- High population growth. Together, Indy’s low unemployment and reasonable cost of living have helped to create an environment that is very appealing to new residents. And, for years, there’s been a steady increase in the city’s population. But, last year, it saw the biggest jump yet as about 23,000 people moved to the Indianapolis-Carmel-Anderson metro area, helping to make the Circle City the 34th largest metropolitan area out of the almost 400 studied by the Indiana Business Research Center at Indiana University’s Kelley School of Business. Of course, with this influx of new residents has come an ever-growing demand for housing. Demand is so great, in fact, that available inventory is down and median home sales prices are up, by almost 14% and 9% respectively, according to MIBOR Realtor® Association. As long as you have a way to find conversion-ready leads, it’s possible to help meet the growing population’s demand for housing while growing your property portfolio quickly too.
- Potential for solid ROIs. With so much else going for Indy, it should come as no surprise that realizing potentially solid returns on your real estate investments is certainly possible. With the right real estate investment analysis and valuation tools to help you correctly calculate your costs so that you can buy, renovate, and sell—or rent—at the best numbers, it’s even probable. Of course, you may not necessarily see the kind of news-making ROIs that routinely get shown on reality television. Remember, Indianapolis is a relatively stable housing market with a history of long, steady growth overall. But, with a lot of hard work and enough of it to keep you busy, your returns can add up to a good, long investment business history of your own.
Provided you have a solid foundation of training under your belt and access to strong resources, each of these factors can be fairly easy to assess and navigate no matter when—or where—you enter the market as an investor. Getting the right support is simply a critical component to becoming a real estate investor who succeeds not just when times are favorable, but also when times are tough. So, though it’s a great time right now to invest in Indianapolis real estate for all the reasons stated above, it’s an even better time to make sure you enter the market putting your best foot forward.
Enter Indy’s Market From the Best Starting Point Possible
As a former real estate agent, Michael knew a few things about investing in real estate since he’d worked with investors, like me, for years. But, that didn’t necessarily serve him well when he wanted to transition into being an investor himself. And, it wasn’t just because he switched markets. He needed a more comprehensive understanding of how to successfully buy and renovate properties for the best possible returns, as well as access to a variety of tools and resources to help him implement his training in the real world—all the things I received when I became an independently owned and operated HomeVestors® franchisee back in Chicago. Plus, if and when the time comes to change markets, as I did, it’s not as hard to pull off with an ongoing source of HomeVestors® franchise network support to help you enter a new city—even one as great as Indy—from the best starting point possible.
There’s never been a better time to invest in Indianapolis real estate as a HomeVestors® franchisee than now. Contact the “We Buy Ugly Houses®” team for more information on how to get started today!
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