Philadelphia Real Estate Investing 101

Many of the clients that we have here at InvestPhilly are, in fact, investors. Investor clients generally have different expectations of their property. Rather, than a place to live, they desire a return from their asset.

There are many reasons why someone might choose to invest in real estate and specifically Philadelphia real estate. Over the next several weeks, the team here at Invest Philly will embark on an ambitious project.

Our aim is to educate our audience about some of the risks, benefits, and unique nuances of real estate investments in the city of brotherly love. Our upcoming blog entries should not be considered authoritative academic texts. Rather, they are a collection of writings from professionals to relate our experience, to pique your interest and to provide a primer for further study.


Also, as we publish entries, we ask that you send us suggestions about subjects you’d like to see written about in the blog. We’re always available at admin@investphilly.com and welcome your input.

To begin our series, let’s discuss why someone might consider real estate investing as opposed to other asset classes.

Benefits:

1.Cash Flow:

Many investor in rental properties do so in order to produce a cash flow. This source of income, which is largely passive, is ongoing and regular allowing many investors to pursue other interests or increase their holdings to further grow their cash flow.

Real estate cash flow is stable, predictable and often given as a reason to get into the field. Barring unforeseen maintenance expenses and the occasional bad tenant, this is often suggested as one of the best reasons to get into real estate investing.

2. Tax Benefits:

When discussing taxes, an important stipulation is to always consult with a qualified accountant or financial adviser before making any decisions. That said, federal and state tax laws are often favorable to real estate owners. Whether homeowners or rental property owners.

This before getting into discussions of tax abatements, which are an article in and of themselves and will be discussed at a later time.

3. Appreciation:

As the saying goes; Buy land, they're not making it anymore. This little nugget of wisdom comes from basic economic theory. Increasing demand for a product with a fixed quantity leads to higher price under most circumstances

Astute investors know where to find undervalued bargains. And, barring a major recession, land values tend to rise over time. Thus making it a good investment. This is especially true in a city. A city like Philadelphia.

 

We hope you’ve found this introductory blog entry informative and hope that you will stay tuned for more detailed articles that are coming soon!

As pictured, successful investments will allow you to buy progressively larger houses.

As pictured, successful investments will allow you to buy progressively larger houses.