Should you buy or rent in Fishtown, Northern Liberties or Old City ?

The Somers (215) 400-2620, Remax Access, Northern Liberties and all over Philadelphia

We find this question pops up in conversation time after time. I will be so bold as to say that just about every first time buyer has asked should I rent or buy ? But before we answer, let's establish some credibility as experts in the areas we are discussing.

Fishtown, Northern Liberties, Old City

Chris and I live in Northern Liberties after having lived in Old City and we do a lot of business as well as enjoy the local jaunts in Fishtown.  Our office is at the epicenter of these 3 awesome neighborhoods. As investors we have purchased properties in all 3 neighborhoods and understand with extreme clarity the value of our investments and how they may preform in the years to come. We are huge fans of all 3 neighborhoods. That being said, we think we have pretty solid grasp on what makes an excellent investment particularly in these areas and when a person should consider renting over buying. Right now home prices are very attractive throughout Philadelphia. Chris has a great saying that you should keep in the back of your mind, "You make your money when you purchase a home not when you sell."

The answer to the first part of the question, should you rent or buy can be found in one simple word: TIME.

1-3 Year Plan

If you are looking to live in your new home for 1-3 years in this current Real Estate market, we’d suggest you consider renting in one of the three subject neighborhoods. If a prospective buyer is looking to stay in their new home for only 1-3 years, the investment is a bit risky because there will not be enough time for the market to increase in value.The answer to the second part of the question is more subjective but I’ll take a stab at it. The Fishtown, Northern Liberties and Old City neighborhoods are relatively close in proximity but vastly different in character. They are similar in that they are desirable places to live and the neighborhoods offer a healthy investment benefit.  But, the amount of property you get dollar for dollar in each of these neighborhoods is very different.  In Old City for example the price per sq ft for a condo is ssignificantly higher compared to the price per square foot in Northern Liberties. The price of an 3 bedroom row home in Northern Liberties is much higher in comparison to Fishtown . Though Fishtown gives you the most bang for your buck so to speak, prices throughout Philadelphia have come down and buying low is the goal in Real Estate. Over time these 3 river side subdivisions will continue to gain value. A good home investment really depends on what your time frame is, what your price point is, and finally where you feel most comfortable.

4-5 Year Plan

If you are looking to live in your new home for 4-5 years or more, then buying is the way to go. Time in this scenario is on your side and you have a much greater chance of taking advantage of appreciating home values.

There are great deals to be had for those who are hangigng in there for 4-5 years or more. And for those who are looking at a shorter term stay in Fishtown, Northern Liberties, or Old City, enjoy the rental deals that are out there. But to everyone out there renting, buying, or selling, remember this advice, "You make your money when you purchase a home not when you sell it." Timing is everything.

For specific information regarding the value of your home of you are looking to purchase a property in any of these areas, contact Chris and Stephanie Somers at 215-400-2620 .