Philly is no doubt one of the most iconic cities on the East Coast. Its rich culture and history surely have a lot to do with this, plus it’s the center of Pennsylvania’s business and commerce. But that’s not all – the booming real estate market is also among the top reasons too. That being said, it offers great opportunities to all the potential investors out there. If you’re one of them, continue reading to learn all about the Philadelphia real estate market.
Why invest in Philadelphia?
When purchasing a property it’s important to steer clear of rash decisions. With this in mind, before you decide to test your luck in the Philadelphia real estate market, you’ll want to research it thoroughly. It doesn’t matter if you’re buying a retirement property or a vacation home, you’ll need to inform yourself prior to the buying process. The first question to ask yourself is – is it worth it? And, consequently, the answer to the fate of your investment property lies in the economic situation. Luckily, in the case of Philadelphia, you can relax as the city’s economy is steady.
Although there is a fear of a possible downturn in the whole country, Philly’s economy is going strong. The job growth is increasing at a steady rate of 1.4% year over year. On top of that, this city is expecting a boom in construction projects, due to an increase in population. All these are clean enough reasons that Philadelphia is thriving, but before you speed up your packing process, you need to think ahead.
What does the future say?
Yes, things are looking good right now, but this is not a guarantee that you will get a return on investment in the future. Except, of course, if you take a look at some of the predictions of the Philadelphia real estate market. Most people would argue that looking far into the future is risky, and yes, real estate markets can get bumpy. However, both current and future Philly investors don’t have to worry about this. According to Zillow, the value of properties is expected to rise and the real estate appreciation will be above average as well. This is all mainly due to population growth and the booming housing construction. There is a large pool to choose from, but the bidding wars can be harsh as well. You can shop around until you find the most affordable piece of real estate, even if it’s further out of the city. Once you’ve found the right property for you, you can move out of your Philadelphia apartment in no time.
Picking a location
Speaking of finding the right property, one of the biggest considerations apart from the price is the location as well. Of course, these two factors are almost always inter-related. Hence, depending on how much money you’re prepared to spend is how you’ll choose the neighborhood you’ll live in. When it comes to Philly, there are numerous neighborhoods to take into account. Of course, some parts perform better than others in terms of good returns, but it’s up to you to find the best deal. For example, East Mt. Airy is among the best neighborhoods on the investment radar. This is one of the neighborhoods where the entry point is low yet the prices are on the rise, so you can expect a good return in the future. Another neighborhood that is experiencing an ascent in the Philadelphia real estate market is Strawberry Mansion. This up-and-coming area is definitely becoming more and more popular so now is the perfect time to place your bets. Last but not least, if you plan on investing in single-family homes, Harrowgate is among the neighborhood hot spots for you. Whichever one you choose, remember that detailed research is a must!
Opting for the right strategy
Before venturing down the investor road, remember to take things slow. The most important thing to keep in mind is developing a strategy unique to your situation and goals. To do this properly, it might be a good idea to hire a real estate agent to help you on your journey. After all, they are professionals in this field and have tons of experience. Just like, when relocating, you’d want the assistance of experienced movers such as zippyshellphl.com, a cash flow strategy requires professional advice. To give you an idea, here are some of the options you can choose from:
FHA Loans – These types of loans require a small down payment and the interest rate is usually fixed.
Hard Money Loans – With these loans, you put up an asset as collateral
Veteran Administration Loans – As the name suggests, they are only suitable for veterans. The plus side is that they have zero down payment with a fixed interest rate
Private Loans – If you’re looking for greater flexibility, private lenders have different options.
Conforming Loans – The down payment is usually from 5% to 20% and they usually follow GSE guidelines
Once you have the right strategy under your belt, all that’s left is to bide your time and pick the best season for moving.
Why now is a good time to buy?
So we’ve taken a look at the future of the Philadelphia real estate market and it definitely looks promising. But, what is it about Philadelphia right now that should make you want to invest here? Let’s recapitulate that the job market is improving, with the unemployment rate numbers falling at a fast pace. This, in turn, means more people are flocking to Philly and taking advantage of the growing job market. Furthermore, this impacts the demand for rentals and real estate, and although the prices are likely to rise over the coming years, they are still quite low when compared to the national average. And while it’s quite possible that Philly investment property can bring you profitability, this depends on the neighborhood as well. So, before you sign on the dotted line, make sure you’ve done your research. After all, this is a long-term investment, so it matters you get it right – the return will follow.