Roseville Vs Merced CA, Where would you invest?

Roseville Vs Merced CA, Where would you invest?

Real Estate Agent · Tracy, CA · Member since 2016 · 5 posts · 0 votes

Hello All,

I see my clients, friends are equally divided investing in either Merced or Roseville, Sacramento area for SFH.

I would like to know from local seasoned realtors or investors: Do you have a preference over any particular area?

If someone thinking of investing anywhere from 500k-700k, SFH, decent appreciation & rental market, which is a better area?

Why?

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Real Estate Broker · Rocklin, CA · Member since 2020 · 221 posts · 82 votes
4y

I would say Roseville because I'm from Rocklin which borders to Roseville. Schools are best in this area and the area is growing.Roseville is very diversified and pretty close to Sacramento. Great for rental, very low crime rate in Roseville. I been living in this area for the past 25+ years.

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  • Real Estate Broker · Rocklin, CA · Member since 2020 · 221 posts · 82 votes
    4y

    I would say Roseville because I'm from Rocklin which borders to Roseville. Schools are best in this area and the area is growing.Roseville is very diversified and pretty close to Sacramento. Great for rental, very low crime rate in Roseville. I been living in this area for the past 25+ years.

  • Eric HammPro Member
    Developer · Merced, CA · Member since 2017 · 44 posts · 26 votes
    4y

    I can't speak to the Roseville market, but I can regarding Merced. I own Next Door Real Estate, the largest independent brokerage in Merced. My wife owns Rental Zebra, the largest property management company. For $500-700K, you can buy 2 SFR's in Merced (possibly 3!). Merced is the #2 fastest growing city in California (based on %) and #7 in total population despite being a community of under 100K residents.

    As someone who has lived in Merced, basically, my entire life, I can tell you it is WELL POSITIONED for growth over the next several years.  Our city leadership has never been better and with UC Merced (the newest campus in the UC system), we will continue to see growth for many years.

    Of course, there are are areas of Merced you wouldn't want to invest, but for the most part, there's something for everyone here.  

    Bottom line, I am personally investing in Merced because I see, firsthand, the potential here!

  • Real Estate Agent · Tracy, CA · Member since 2016 · 5 posts · 0 votes
    4y

    Thank you, Ranjit. Any major projects happening in the area? Any new employers?

  • Real Estate Agent · Tracy, CA · Member since 2016 · 5 posts · 0 votes
    4y

    @Eric Hamm, Thank you so much for your insight, Eric. Other than UC Merced, What is the renter profile looks like in Merced?

  • Investor · Turlock, CA · Member since 2016 · 13 posts · 4 votes
    4y

    I personally invest throughout California. Although I'm more of a flipper investor, from my perspective and side of the business it all comes down to the individual deal. I've purchased properties in Stockton for $26,000 to a recent house right above Elk Grove for $286,000. Both are amazing deals, it seems like your investor client will be purchasing properties off of the MLS? Sorry if I am not much help but I wanted to give my input from the flipper perspective, it's all about the deal.

  • Real Estate Broker · Rocklin, CA · Member since 2020 · 221 posts · 82 votes
    4y

    Hi Rohini,

    I'm a broker and own my company NMA Realty. Yes, there are many new projects and one of them was Amazon, built on Foothills Blvd along with Restaurant Depot. Also new Nugget market was built on Blue Oaks Blvd. Lot of new constructions are going on baseline road as well. Roseville is growing towards HWY99.

  • Investor · El Dorado Hills, CA · Member since 2012 · 1k+ posts · 1k+ votes
    4y

    I grew up in Rocklin/Roseville and a few years ago I spent some time taking a hard look at the Merced area.  I almost bought a gas station in Winton.  I see the lower entry point and the growth.  I was partnering with the former mayor.  But overall there just was not really any reason to be there other than if you were from there or were tied to the school.    My fear would be the exit.   If the market turns places like Merced will take the brunt of it.   If covid variations keep popping up I think colleges are in big trouble.   Nobody is paying full tuition to take online classes while living at or near the school.  Or maybe kids and parents catch on and educate in other ways.   At this point there isn't a major penalty from employers for going to school online vs in person.  Roseville area has a much stronger and diversified employer base and people that really want to live there.  

  • Eric HammPro Member
    Developer · Merced, CA · Member since 2017 · 44 posts · 26 votes
    4y

    @Rohini Parab -  The UC is more of an economic driver here in Merced.  Sure, there are investors who have done well renting to UC students.  But what the UC is doing in Merced is driving growth.  For instance, the State of California just spent $2.3 Billion on construction at the campus.  That means jobs.  The Walton family (Wal-Mart) just invested millions of dollars on a few large projects in our downtown (hotel, apartments, theater/entertainment center) because they see the long term viability.  As a result, there are now several other projects popping up to capitalize on all that growth.  The ACE train is going to be connecting Merced with Sacramento & the Bay Area in 2025. 

    The former Castle Air Force Base is now a test track for autonomous vehicles.  Google was the first tenant.  Now you’ll see nearly every auto manufacturer out there.  And the test track only takes up a fraction of the space out at the old base.

    On top of all that, housing inventory is beyond scarce.  The minute a rental property becomes available, it’s filled with 10 more applicants wishing they’d been selected.

    @Joe Bertolino made some good points about colleges in general, but UC’s are not colleges.  They are research institutions and are funded by the State.  He also said he’d looked at investing in Winton.  Winton is not Merced.  And, as I said in my previous post, there are areas you wouldn’t want to invest.

    Having said that, Roseville is also a very attractive area.  You’ll likely see great growth there as well.  I would see where you can find the best team…if you plan to invest from out of town.

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