If you’re wondering how much $400,000 would buy you in real estate, the answer is: not as much as you think.
You might be thinking that because it’s a lot of money, it must be enough to buy a house or two. That is not the case, however! The $400,000 figure is based on the average home price in the United States. It doesn’t account for all the factors that can influence how much you get for your money.
Things to consider before buying a property
If you’re looking for land or an apartment in an area with low prices but still demand for new homes, then buying at $400,000 might be the best option. On the other hand, if you’re looking for an expensive penthouse in New York City or Los Angeles—or one that overlooks Central Park—you may need to look elsewhere.
According to Point2Homes analysts and evaluations from the country’s 100 largest cities, $400,000 will get you less than 300 square feet in New York City and a paltry 267 square feet if you choose to buy rather than rent in Manhattan.
What you can get for 400k?
– A small home in a good neighborhood with one or two bedrooms (about 1500 square feet).
– An apartment in a decent neighborhood with 2-3 bedrooms (about 2100 square feet).
– If you want more space, some larger homes are available for over $300K. But they tend to be in less desirable neighborhoods and don’t have many amenities.
Cities where $400,000 can buy you reasonable property
Indianapolis, Indiana; Milwaukee, Wisconsin; Tulsa, Oklahoma; and Lubbock and El Paso, Texas are among the cities where you may get the most value for your $400,000. For the typical property price in these cities, buyers can acquire between 3,000 and 4,000 sq. ft. of living area.
$400,000 buys you a 1,905 sq. ft. in Colorado, 4,444 sq. ft. in Toledo OH, 5,882 sq. ft. in Detroit, MI, 3,846 sq. ft. in Wichita, KS, and even better in many suburbs
Hopefully, this analysis has given you a better understanding of how buying real estate in different regions can affect your financial bottom line
