Building wealth with real estate has become hotter than ever – and for all the right reasons.
And, building a real estate portfolio in Philadelphia has never made more sense.
Why Buy Real Estate in Philadelphia?
We’re strong believers investing in Philadelphia real estate for a few reasons in particular.
- The Demographics of “Eds and Meds”
- Philly Real Estate Compounds Your Cash
- Philadelphia Real Estate Makes Tax Sense
- You Can Outsource the Hard Part
And, HubKey is here to help make owning Philadelphia real estate even easier.
Reason #1 To Buy Real Estate in Philadelphia: Eds & Meds
Eds and meds = education and medical systems.
Consider the incredible portfolio of educational institutions and medical institutions that will be driving real estate values in Philadelphia for years to come:
- University of Pennsylvania
- Drexel University
- Temple University
- La Salle University
- Villanova University
- Arcadia University
- University of the Sciences
- Thomas Jefferson University
- St. Joseph’s University
- Thomas Jefferson University Hospital
- University of Pennsylvania Health System
- Children’s Hospital of Philadelphia
- Hahnemann University Hospital
- Temple University Hospital
- Fox Chase Cancer Center
- St. Christopher’s Hospital for Children
- Drexel University College of Medicine
- Cooper University Health Care
- Lankenau Medical Center
- Jeanes Hospital
When it comes to reasons for individuals to move into Philadelphia and maintain constant (and growing) demand for real estate, the number of thriving educational and medical institutes is absolutely number one.
From affluent medical professionals moving to the area for 2-5 years (and longer!) during or after residency, to high-quality tenants among middle-income and affluent attendees of our great universities, Philadelphia enjoys constant and growing demand for rentals in great neighborhoods.
Reason #2 To Buy Real Estate In Philadelphia: Leverage
Buying real estate makes sense because when you take out a loan to purchase a property, you’re essentially leveraging the bank’s money to make an investment.
Buying Philadelphia real estate is a smart way to invest because you can use a small amount of your own money to control a much larger asset. Cash-on-cash return is one of the best ways to think about ROI on your Philadelphia real estate, meaning that when you buy a $400K property for $80K up front, you’re realizing the appreciation and income of $400K invested for a fraction of that cost upfront.
Try buying stocks or even a REIT with 20% down and you’ll understand the power of leveraging the bank’s money to buy real estate in Philadelphia.
Reason #3 To Buy Real Estate In Philadelphia: Good Tax Sense
Owning real estate as an investment can provide significant tax benefits. The most notable benefit is the ability to depreciate the property. This means the owner can deduct a portion of the cost of the property from their taxable income each year, a significant benefit for those interested in owning property for 10-30 years or more.
In the meantime, the interest you pay on loans and the local or state property taxes are also tax deductible for Philadelphia property owners.
Building generational wealth with property is incredibly tax efficient too, as your heirs receive a step-up in basis at your passing. The inheritor essentially “resets” the purchase price to the current market value – usually substantially higher than when you bought it – which can significantly reduce the capital gains taxes due upon a final sale.
Real estate is arguably the most tax-efficient and smartest way to build generational wealth.
Reason #4 To Buy Real Estate In Philadelphia: You Can Offload The Hard Part
Using a Philadelphia property management company like HubKey Property Management takes the hassle out of owning property.
We offer a comprehensive range of services that make it easier for landlords to handle their rental properties, from marketing and leasing tenants to collecting rent and handling maintenance requests. With a white glove property management service like HubKey, landlords don’t need to spend time dealing with tenants, tracking down rent payments, or even taking care of time-intensive evictions – the hard work is all handled directly by HubKey.
With a property management service like HubKey, you can focus on the fun part – building wealth with a high-quality Philadelphia real estate portfolio.
