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Answers (4)
Best Answer
- Donna J. DeStefano, "DonnaDeStefano"
- Contributions:20
Hi Ken,
First, congratulations for being a forward thinker. Predictions indicate that the Feds will keep interest rates low through 2014 so your willingness to invest is a great choice. Regarding your investment in the City as oppossed to the suburbs, the real question is which location will carry itself without you putting money out of your pocket each month. When you generalize and say "suburbs", it certainly depends on location and the amount of the potential rental income that property will produce based on the market in a specific area. Center City Philadelphia is certainly a desirable market and one that easily rents. However, the monthly condo fees are a factor in your equation in addition to vacancy loss, lease expiration date (which should be during rental season), manaagement fees, reserve and principal, interest, taxes and insurance (PITI) for an investment property. Remember, your rate will be a bit higher if this is an investment property and your debt to income ratios will determine your qualifications. To discuss in further detail, feel free to contact me. We also offer a free one year home warranty to our buyers* which would cover the systems in the property. *Some exclusions apply.
Have a good day.
Donna
- Joseph Cordova, "Joseph S. Cordova"
- Contributions:42
Ken,
I feel Donna hit the nail on the head! I went to an Otteau Valuation Group seminar last year and a lot of the discussion was on how our real estate market is shifting to a European Market Model. This is from Driveable-Suburban to Walkable-Urban. Gen Y wants walkable & affordable mixed-use. Estimated that 1/3 of buyers will pay more to walk to shops, work, & entertainment. This will drive your appreciation in the future. Best of luck!
I feel Donna hit the nail on the head! I went to an Otteau Valuation Group seminar last year and a lot of the discussion was on how our real estate market is shifting to a European Market Model. This is from Driveable-Suburban to Walkable-Urban. Gen Y wants walkable & affordable mixed-use. Estimated that 1/3 of buyers will pay more to walk to shops, work, & entertainment. This will drive your appreciation in the future. Best of luck!
- jrtpapa
- Contributions:84
Sounds like you are an investor. Philly of course has a higher Wage Tax as well as poorer schools than the suburbs. Those two things will tend to push people to the suburbs, and consequently may place a ceiling on your return-on-investiment. However the property taxes are higher in the suburbs. That may change this fall when the Philly properties are all re-assessed to make the property taxes more equitable (see articles about a year ago in the inquirer about property tax inequities in various parts of the city.
- Timothy Garrity, "Philly Urban Living"
- Contributions:28
Hi, Ken.
It's hard to say that one is better than the other because they are both large areas with smaller, more specific sub-markets.
In my opinion, there will be more options for you in Philadelphia than in the suburbs and there is also a greater demand for rentals. Reason being, Center City Philadelphia is where most of the area's jobs are and it's surrounded by 3 large universities (Penn, Drexel, and Temple).
I specialize in working with people looking to buy/flip and buy/hold properties in the city. If you need help, please feel free to contact me.
Best,
Tim
It's hard to say that one is better than the other because they are both large areas with smaller, more specific sub-markets.
In my opinion, there will be more options for you in Philadelphia than in the suburbs and there is also a greater demand for rentals. Reason being, Center City Philadelphia is where most of the area's jobs are and it's surrounded by 3 large universities (Penn, Drexel, and Temple).
I specialize in working with people looking to buy/flip and buy/hold properties in the city. If you need help, please feel free to contact me.
Best,
Tim
Condo in Philadelphia or Suburbs
Thanks,
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