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- Your Daily Dose Of Knowledge! November 8, 2024 - #192
Your Daily Dose Of Knowledge! November 8, 2024 - #192
Today's New Post - Real Estate - Stock Market - Start Your Business - Boost Your Knowledge - More
Welcome Back,
Hi everyone, I hope you are all having a great Friday today! Today we are back to discuss to Real Estate Market of Madison Wisconsin. I also hope your excited as Saturday will be our very first email on our newest topic. Enjoy!
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Real Estate Investing
Market Snapshot:
Madison, Wisconsin
The Madison real estate market is on an upward trend, with the median home price at $435,000, representing a 7.4% increase year-over-year. Madison’s strong economy, bolstered by its tech and healthcare sectors, continues to drive demand, particularly among young professionals and families. Inventory is slightly limited, with 2,200 active listings, down 2% from last year, adding to the competitive nature of the market. The city’s high quality of life and relatively affordable pricing compared to other Midwestern hubs make it increasingly popular among both buyers and investors.
Median Home Price: $435,000
YoY Price Growth: 7.4%
Active Listings: 2,200 (down 2% from last year)
Deal Of The Day:
Triplex in Downtown Madison
Price: $650,000
Units: 2 (3-Bed, 3-Bath each)
Monthly Rental Income: $5,600
Cap Rate: 7.0%
This well-located triplex in Madison’s downtown area offers strong cash flow potential with each unit generating $2,800/month in rental income, totaling $5,600 monthly. With a cap rate of 7.0%, it provides solid returns and benefits from proximity to universities, healthcare centers, and tech companies, ensuring demand from a wide range of renters. Ideal for investors seeking reliable rental income and the chance to capitalize on Madison’s steady growth.
Real Estate Tip:
Investment Strategy:
Blanket Mortgage Financing allows investors to finance multiple properties under one mortgage, often with a lower interest rate and fewer fees compared to taking out individual loans. For example, purchasing three properties under a single loan can streamline management and reduce closing costs, benefiting investors who want to expand their portfolio with minimal hassle.
Current Interest Rates:
Madison, Wisconsin
30-Year Fixed Residential: 695%
15-Year Fixed Residential: 6.1%
Commercial Rates: Starting at 6.4%
Interest rates in Madison are around 6.95% for a 30-year fixed mortgage and 6.1% for a 15-year fixed loan. These rates, while higher than previous years, have kept rental demand high as more residents choose renting over purchasing. Commercial rates starting at 6.4% continue to offer investment opportunities in the multifamily and mixed-use property sectors.
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Economic Conditions
Madison’s economy is robust, supported by growth in technology, healthcare, and education, with an unemployment rate of just 2.9%, below the national average. Rising costs of construction, up just 3.4% year-over-year, compared to other areas, have slightly change the amount new developments, keeping housing supply steady. This economic resilience, coupled with demand for rental properties, provides a stable foundation for real estate investment.
Why College Towns Are Hotspots for Real Estate Investment
College towns, like Madison, present unique opportunities for real estate investors due to the high rental demand driven by students, faculty, and university staff. Properties in these areas often enjoy lower vacancy rates, particularly in neighborhoods near campus facilities or popular student housing areas. Additionally, these locations tend to appreciate steadily, even in slower economic periods, thanks to the reliable influx of new students each year.
For investors, targeting college towns can mean consistent rental income and less fluctuation in property values. It’s also worth noting that such properties can be rented out as long-term or short-term rentals, depending on demand. This dual-purpose appeal makes college town properties a versatile addition to any portfolio, providing stability and cash flow in nearly any market environment.
The Real Deal: Myth busting
Myth: Real estate investment is only for those with high capital. (False)
Many investors start small with single units or through partnerships, making real estate accessible at various investment levels.Myth: All property values increase over time. (False)
While many areas appreciate, some markets fluctuate based on economic conditions, location, and property type.Myth: Investing in a college town is risky due to student turnover. (False)
College towns generally maintain high demand, and vacancy rates are often low due to the consistent presence of students, faculty, and staff.
Common Real Estate Questions
If you have a questions regarding real estate reply to this email or email us at [email protected]
Key Takeaways:
Madison Market Update: Median home price is $435,000, up 7.4% YoY, with inventory at 2,200 active listings.
Deal of the Day: Triplex in Downtown Madison priced at $650,000, generating $5,600 monthly rental income with a 7.0% cap rate.
Tip: Evaluate local rental demand when investing in multifamily properties to ensure steady occupancy.
Investment Strategy: Use blanket mortgage financing to simplify purchasing multiple properties with one loan.
Interest Rates: Madison’s rates at 6.95% for a 30-year fixed mortgage, maintaining high rental demand.
Economic Impact: Madison’s low unemployment and steady demand for rentals support strong investment conditions.
That’s All For Today
I hope you enjoyed today’s issue. If you have any questions regarding today’s issue or future issues feel free to ask. Come back tomorrow for information on how to grow your income and wealth. I hope to see you.
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