Here’s a Secret to Making Money in Real Estate
I just found this blog called Money-ish which gave me some food for thought when it comes to making money in real estate. Believe it or not, Americans who own homes that are closer to a Trader Joe’s grocery store — as opposed to Whole Foods — saw higher home price appreciation. That info comes from data released from real estate analytics firm ATTOM Data Solutions. The study looked at 1,275 zip codes nationwide with a least one Whole Foods store, one Trader Joe’s store and one ALDI store.
According to ATTOM Data Solutions, homeowners nearest to a Trader Joe’s Grocery Store have an average 5-year home price appreciation of 67%, compared to 52% appreciation for homeowners near a Whole Foods. Average appreciation for all zip codes with these grocery stores nationwide is 54%.
Plus, homeowners near a Trader Joe’s also have added equity, owning an average 36% equity in their homes ($232,439), compared to homeowners near Whole Foods, who had an average of 31% equity ($187,925).
Establishment vs. Trendsetting?
While it’s not clear why exactly homeowners near a Trader Joe’s are coming out ahead here, experts say it could be that, while Whole Foods tends to put its stores in more established, affluent neighborhoods, Trader Joes might pick trendier, a little-less-established one. That makes sense to me considering that although established affluent neighborhoods have seen plenty of home price growth lately, homes that are located in up-and-coming and super trendy neighborhoods can see even faster home price appreciation.
Selling quickly? That might be a different story.
If you’re an investor hoping to flip your home — meaning that you will buy and sell it within a year — however, the calculations may be different. “Properties near an ALDI are an investor’s golden goose with an average gross flipping ROI of 69%, compared to properties near a Whole Foods which had an average gross flipping ROI of 41% and Trader Joe’s at 36%,” the report revealed. “The average gross flipping ROI for all zip codes with these grocery stores nationwide is 57 percent.”
Looking for an excellent Santa Barbara investment property?
For those real estate investors, I have a listing for a great Santa Barbara Investment Property. It’s a wonderful downtown triplex located a short distance from State Street, theaters, restaurants, and parks. (And not far from Trader Joe’s!) The excellent investment property consists of a 3 bedroom, 2 bathroom and 2 bedroom, 2 bathroom duplex and a separate detached 3 bedroom, 2 bathroom house. The property is complemented by off-street parking and is all separately metered for ease of operation. Graciously appointed and updated units have stable tenants and offer downtown living with flexible owner user options.
For anyone interested in making money in real estate, consider any of my current listings in Montecito, Hope Ranch or any of Santa Barbara’s upscale communities. Just check out my comprehensive website then give me a call at 805.886.9378 or email me at [email protected]. By the way, there are four Trade Jo’s here!