Why Invest in Milpitas, CA Real Estate?
Boasting an impressive transportation infrastructure, charming parks, vibrant shopping centers, great leisure ops, and high rankings on livability scales, Milpitas hosts more than 77,000 residents. The place has experienced a 0.19% population growth rate in 2017, attracting both people looking to permanently relocate and commuters in search of higher-paying jobs.
Milpitas is located in southern Bay Area’s Santa Clara County, in close proximity to California's Silicon Valley hubs. The area's economy is strong and constantly growing, with manufacturing, professional services, technology, scientific services, healthcare, and social assistance being the largest industries. These sectors are continuously expanding, creating jobs, and generating revenue.
Although it's a highly competitive city, Milpitas' properties are some of the lowest-priced in the entire Santa Clara County. This applies especially to entry-level homes, which makes them a desirable choice for real estate investors.
Investment Considerations for Milpitas Real Estate
There are a number of factors to consider, including:
- Growing Economy- Offering excellent transportation infrastructure for residents and commuters from the technology industry, Milpitas enjoys economic development as well as benefits from the Silicon Valley's economic growth. The unemployment rate is 3.8%, lower than the 5.2% national average, with 14.1% of people working in high-paying professions. Moreover, the city's job growth rate was 3.3% in 2017 and is predicted to be 42.9% over the next decade. SanDisk, LifeScan, and View, Inc are just some of the companies headquartered in Milpitas which accommodate the predicted growth. As a result, real estate investors have the chance to choose from renters and active buyers who are employed and able to pay the rent.
- Affordable of Entry-Level Properties - The median price for homes in Milpitas is $1,238,890, which is considerably lower than $5,549,000, the highest median property price in the Santa Clara County. Hence, while property values grow, the entry price of homes stays affordable. 31.82% of the properties are renter-occupied units, so, besides active home buyers, there are always a lot of tenants searching for a place to rent. This is a great advantage for real estate investors looking for a positive cash flow likelihood and a steady year-round profit.
- Gentrification of City Neighborhoods - As mentioned above, properties in North Tustin have experienced an appreciation rate that increased by 13.1% during recent years. Furthermore, it's estimated that it will continue rising by an additional 5.7% throughout 2018. This goes hand in hand with the relatively low property prices compared to the rest of the county. Real estate investors can translate that into recouping their investment and seeing profit.
- High Ranking on Livability Scales - Milpitas offers good schools (John Sinnott Elementary School, Milpitas High School, Curtner Elementary School, and so on), low crime rates, affordability, and superb recreational amenities. That's why it’s considered to be one of the best living destinations for STEM workers from the Silicon Valley. This is awesome news for real estate investors looking for renting out or flipping properties and enjoying steady incomes.
What are the best neighborhoods to invest in Milpitas
- The entire Milpitas is awesome for investing in property, yet areas like East Calaveras Boulevard is one of the best, as it's central and very walkable, thus preferred by numerous renters and buyers.
- With an overall cash on cash return of 0.63% and average rental income of $2,791, Milpitas stays profitable and provides a large number of real estate opportunities while being one of the county's most affordable cities.
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