The following excerpt is from an article found on BILLYPENN. It was written by Anna Orso.
Young people in cities across America — Philadelphia included — just aren’t buyings homes. With student loan debt higher than ever and a shaky job market, a down payment on a home can be daunting.
But if you think you’re going to be living in one place for three or more years, now might be the best time to buy.
RE/MAX @ Home CEO Maria Quattrone said it’s hard to say how many millennials in the city are living at home or sharing a space with friends, but the benefits of buying now could outweigh the drawbacks, whether that’s through a 10-year tax abatement on new construction or the chance to build equity as student loans are paid off.
But Quattrone said the big thing homebuyers should take advantage of now is low interest rates — across the country, the Fed says interest rates will increase by October. While it’s not expected to be dramatic, Quattrone said the buying power one could have now is greater than it will be by late fall of this year.
The key is to buy in a neighborhood where the buying power will be maximized. And from where Quattrone is sitting, three neighborhoods in Philadelphia stand out. And while they are considered “developing,” it’s worth noting that some see that as a nicer word for “gentrifying.” As young professionals and families push outside the limits of Center City, tax rates and rent prices are going up in neighborhoods that were once on the outskirts.
Either way, developers are taking advantage and pushing apartments, condos and new construction in neighborhoods they hadn’t before. These are three of the neighborhoods where that’s happening, and where you might get the best bang for your buck if you think you’re ready to buy!