Philadelphia, PA, is known as “Philly” and “The City of Brotherly Love” by its 1.6 million residents. Founded in 1682, it’s one of the nation's oldest and most historically significant municipalities—and occupies an area of about 162 square miles. It was where America’s founding fathers put pen to paper in signing the Declaration of Independence in 1776 and the nation’s Constitution in 1787. Tourists flock to “The Rocky Steps,” made famous by actor Sylvester Stallone in the Rocky movie franchise and the Liberty Bell and Independence Hall.
Devon is a suburb of metropolitan Philadelphia, where the median home price is currently $735,000—down from last year’s astonishing median price of $2,800,000. Despite this drop, Devon homes for sale are still closing within five days of listing—compared to 165 days one year ago. Philadelphia and its suburbs are in a seller's market, especially as homeowners flee bigger East Coast cities like New York City and Boston. As such, buyers looking to invest in houses for sale in Devon or other Philadelphia luxury neighborhoods should consider the following information before making their move.
When and where to invest in Philadelphia real estate
Since the median price for Devon homes for sale has dropped by approximately $2 million since reaching an all-time high in 2021, now’s the right time to invest—before numbers start trending upward again. Philadelphia's population has been increasing for 12 years straight, and its employment numbers have risen steadily at about 1.17% yearly. The city is a hub for travel, located halfway between New York City and Washington, D.C., and a haven for commuters.
Several neighborhoods, including those amongst Devon homes for sale, are ideal for investors, especially since prices have dropped. Olde Kensington has transformed over the past few years from an industrial-based locale to a trendy loft-and-condo area where abandoned factories have been converted into modern living spaces.
Not only is the location of utmost importance with anything real-estate-related, but knowing the market inside and out is also vital to a smooth transaction. Research Philly real estate in an area that you’re familiar with, and do a deeper dive into the schools, commuter routes, and medical facilities nearby with your realtor. These components are crucial to help you assess rental values and whether your investment in Devon homes for sale will be profitable.
Investors are wise to stay near their own neighborhood because they already know the location and demographics. Additionally, you’ll be located near your investment property, so you can be an active landlord and correct any problems quickly. Being local gives you a leg up with tenants because they’ll know you’re accessible and comfortable with the area.
While it might be tempting to invest in a large property, doing so may mean you’ll be waiting around for a tenant that can afford the rent. Stick to low to medium-price ranges and modest homes that follow the three-bed, three-bath, two-car garage single-family home, and chances are, you'll have tenants lining up to rent.
Know the law
Investors and landlords must comply with many local, state, and federal rules, regulations, and laws. Unless you're a real estate or legal expert, don't try to wing it yourself. Invest in a professional property manager, or enlist the aid of your real estate expert to interpret these details for you. Your realtor can provide references for each of these specialized real estate niches.
Slow and steady pays off
When it comes to investing in a Devon home for sale, slow and steady does win the race. Wait to purchase a second rental property until after your initial property earns a profit. Even then, wait for a few months or even a year to ensure your tenants are solid—meaning they pay their rent on time, are respectful neighbors, take care of the property, and are an asset to the neighborhood.
Are you searching for Philadelphia luxury real estate?
When you’re ready to begin researching Devon homes for sale, or have questions about building a Philadelphia real estate investment portfolio, contact the experienced local agents at The Susan Fitzgerald Team.