The COVID-19 pandemic has hit everyone hard across the globe, causing huge economic shifts on a global level. But despite the dire outlook for many industries, there’s one industry in particular that seems to be thriving despite the setbacks. Real estate in Philadelphia is booming, with homes selling at the fastest rate in history, taking an average of just 9 days to sell in July this year.
Thanks to shifts in work and education, more families are looking for bigger spaces to do both remote work and remote learning. For people looking into investing in real estate, this means more and better opportunities in the short- and long-term.
Where Can You Invest?
Before you start on your real estate investment journey, it’s important that you understand the landscape. Real estate investment is about playing the long game, looking out for patterns and opportunities that may not be as evident on the surface.
One thing that will be especially helpful for prospective real estate investors is an understanding of what neighborhoods are considered to be the most attractive for buyers.
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 and ranking a bit higher on 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, with a median purchase price of $348,000. If you’re looking to cater to families, Port Richmond is a good choice at $144,000. If you’re on a limited budget, try Grays Ferry, which goes for around $140,000 per property but whose property values have grown almost 100% since 2019.
Regardless of what area and budget you’re looking at, there’s no better time to invest in real estate than now. According to Drexel University’s Lindy Institute for Urban Studies, the suburban Philadelphia real estate market has broken records over the past year— proof enough that the time is ripe for investment.
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, and you’ll need to learn to network and connect with top investors, appraisers, house flippers, title agents, and more.
Next is 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 their 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 name registration, required business licenses, notary fees, and more. Other documents and fees may be required for S corporations.
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.
Article specially written for www.brotherlyloveproperties.com by Oli Greens