Is Philadelphia a Good Place to Invest in Real Estate?
Back in 2020 and the years that followed, the COVID-19 pandemic hit everyone hard across the globe. The unprecedented events caused huge economic shifts on a global level.
But, despite the dire outlook for many industries, there was one industry in particular that continues to thrive, despite the setbacks: the real estate market.
Real estate in Philadelphia is particularly booming. Homes are selling at the fastest rate in history, taking an average of just nine days to sell in analysis reports.
Plus, thanks to shifts in work and education, more families are looking for bigger spaces for remote work and learning. For people considering property investment in Philadelphia, this means more and better opportunities in the short and long term.
Keep reading to learn why Philadelphia is a great place to invest, where to invest, and how to invest in the city.
Where Should I Invest in Property in Philadelphia?
Before you start your real estate investment journey in Philadelphia, it’s important to understand the landscape. Real estate investment is about playing the long game and looking for patterns and opportunities that may not be as evident on the surface.
One thing that is especially helpful for prospective real estate investors is understanding what neighborhoods are considered to be the most attractive for buyers in Philadelphia.
Neighborhoods like Chestnut Hill are particularly attractive to executives, managers, and other high earners. With a median rental price of around $1,700 per month and a median purchase price of $624,000, it’s considered one of the best neighborhoods in the city.
Another popular spot is Logan Square, one of the most vibrant parts of the city. This ranks slightly higher on the median monthly rent, at around $1,800.
Fishtown is notable because of its popularity with hipsters, artists, and students. Full of great restaurants, pubs, and coffee shops, it’s an attractive area. Fishtown has a median purchase price of $348,000.
If you’re looking to cater to families, Port Richmond is a good choice, with a medium purchase price of $144,000.
If you’re on a limited budget, a good place to invest in Philadelphia is Grays Ferry. Properties in this region go for around $140,000 per property, with values that have grown almost 100% since 2019.
How to Set Up Your Real Estate Business
Once you’ve gained an understanding of the market, the next thing to do is to think about setting up your business. Investing in real estate in Philadelphia requires long-term thinking.
If you’re a new investor, you’ll need to learn to network and connect with top investors, appraisers, house flippers, title agents, and more if you want to succeed in property investment. Wholesaling real estate in Philadelphia is a common strategy that investors use too. However, you’ll need a formal wholesaler license for that.
Next, you need to look at your business model. The most common property management business structures are an incorporated business (S-corp or C-corp), or a Limited Liability Company (LLC). Each has its own pros and cons, so you’ll need to do research on which one is the right fit for you.
Forming a new LLC in Pennsylvania costs a minimum of $125 for the Certificate of Organization filing fee. Other fees may include a name registration, business licenses, notary fees, and more.
Other documents and fees may be required for S corporations. Learn more about setting up a business in Philadelphia and what fees/registrations are required.
In summary, Philadelphia is a great place to invest in property. Regardless of what kind of business model you choose, there’s never been a better time to invest in real estate in Philadelphia. Make sure you take advantage of the current climate, and move in while the market is still thriving.
The most popular areas to invest in are Chestnut Hill, Logan Square, Fishtown, Port Richmond, and Grays Ferry. Which area is best for you depends on your budget, intention for purchase (i.e. flipping a property or renting a property), and the type of buyer or renter you want to attract.
Before investing in a Philadelphia property, consider speaking to a local real estate company. At Brotherly Love Real Estate, we are your local property experts. We buy and sell houses fast for cash in Philadelphia. Contact us today at (215) 769-9875 for a chat about where to invest in Philadelphia to maximize profits.