Philly residents may find some great deals if they choose to buy instead of rent
The housing collapse of the late 2000s has made many homebuyers in the City of Brotherly feel relatively tentative about investing in a home. Instead, many of them, particularly younger ones, have opted to rent instead, which has pushed up rents to high levels. This imbalance could create an ideal opportunity for some residents to buy one of the homes for sale in Philadelphia, PA, with the aim of having a valuable asset down the road.
With its abundance of cultural options and respected universities, Philadelphia has long been considered a coveted rental market, but it has become increasingly so in recent years.
"Our advice to the prospective renter is to bring a checkbook, because if you find something you like and delay a decision, it could be gone in 20 minutes," Rich Lauletta, chief marketing officer of the Philadelphia Apartment Company, told the Inquirer.
This competition has pushed up local rents to $1,300, a high figure for the city. As such, some residents are re-evaluating the local housing market and trying to decide if it might be a good time to buy real estate in Philadelphia, PA. With prices that are still low in the wake of the recession - although rising by many accounts - and increasing rents, it is in fact a good time to buy, according to many sources.
CNN, for example, included Philadelphia on its list of cities where buying a home instead of renting is a wise move. According to the source, the still-low median home price of $187,300 makes buying property a good move. At that price, a homeowner would make back his or her investment in three years, one of the lowest amounts of time in the country. In fact, for those who buy one of the homes in the city's limits, this figure drops to 2.3 years.
With this in mind, it is quite important for prospective buyers to expand their search and consider as many options as possible. While buying a house within the city might be an easy decision, finding a home in one of the pricier suburbs might be a different story. According to the source, in many communities outside the city limits such as Haddonfield, it can take more than a decade to break even.
With city rents rising, creative homebuyers may be able to find their dream home in Philadelphia and actually save some money in the process.