Main Line Homes Blog

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Tired of the stock market? Is real estate an alternative?

Many smaller, private investors find it harder and harder to make decent returns on the stock market, competing with computer trading and big funds. If you are finding this an issue, investing in alternative markets might be a good strategy. Real Estate as an investment has been an alternative for a long time, the bubble bursting over the previous years took a lot of air out of the market and like the stock market investors learnt prices can go down as well as up.

However, some of the first buyers into the market when they thought it had reached bottom have been investors. Many of these deals have been for cash, on properties that have suffered over the years and allow for remodelling and the opportunity to realize a capital gain. Other opportunites are out there for those who want to build up a portfolio of rental houses providing a steady income. 

Both strategies require different methods and depending on your goals you must decide on the best way forward for you. There are often deals out there that include multiple properties as an investor changes direction or an opportunity arises and they want to raise capital for a different project. These types of deals may not be on the MLS, but require good connections within agents in the makret who might have investors.

A recent example, a local investor had some single family rental properties he wanted to buy, he owns some aparment units, and ended up making a deal where he sold one of the apartment buildings to the seller of the single family rental properties he was buying. 

Another point to remember when doing these types of deals is that using a 1031 exchange can save you substantially on capital gains tax at the federal level, but they do need to be transacted correctly using experienced independant exchange companies.

So what is your plan for the future, purchase, remodel and re-sell, or purchase and rent?

28 school lane, ardmore, pa 19003

We currently have a triplex multi family house for sale, $409,000, in a great location in downtown Ardmore. It has a walk score of 83/100, highly walkable and something tenants today require as many don't have cars or don't wish to use cars. Shops, parks, library, restaurants and coffeee shops as well as train and buses are all within a few mintues walk of this location at 28 School Lane, Ardmore, PA 19003. A steady rental history with staggered leases throughout the year make this a good investment property. Two one bedroom, one bath apartments on the groud floor with a rare three bedroom, two bath apartment on the second floor, all with private entrances. Space in the garden for tenants use and a two car garage for storage or off-street parking if wanted. Basement shared laundry area, with coin operated washer and dryer provides increased income. Our client owns multiple properties in the area and is willing to consider a deal on all or some of these properties. Call Nick for details and to arrange an appointment to view this and other investment properties.

If you are buying or selling on or around Tredyffrin Easttown or along the Main Line we can help you,  contact us or connect

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Comments

Great post - always good for investors to diversify and real estate is a solid option. Regards, Dave

Posted by David Grbich, Orange County Real Estate - 949-500-0484 (Realty One Group - www.FindCARealEstate.com) over 6 years ago

We have had a lot of first time investors looking for property in the hopes of building several investment properties hoping to build toward retirement. Most people do seem to believe that real estate is a better investment than the stock market.

Betty

Posted by Team Honeycutt (Allen Tate) over 6 years ago

Thanks Dave and Betty, yes we too are finding investors are much more active, each one has their own system and way to decide what they want to do.

Posted by Nick & Trudy Vandekar, 610-203-4543, Tredyffrin Easttown Realtors, Philly Main Line (Long & Foster Real Estate Inc 610-225-7400) over 6 years ago

Nice post Nick and Trudy, my answer to your question is a resounding yes! The stock market is certainly more difficult to master and keep up to speed, where in real estate, anyone with that is strong in common sense and has an agent who truly works in their best interest can do well, regardless of market conditions.

 

Posted by Bill Carroll, IN REAL ESTATE, REPRESENTATION IS EVERYTHING (The Corcoran Group Real Estate Co.) over 6 years ago

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