I am more concerned about the return of my money than the return on my money
Over the past few weeks I have seen a financial and real estate market that is very turbulent. People are concerned about safety of their investments. One of Mark Twain's great quotes comes to mind.... "I am more concerned about the return of my money than the return on my money."
Today, with the stock market acting very choppy and constant concern about which banks will be open tomorrow (even with fdic insurance being raised to $250k) prime real estate continues to be an option for the long term investor. Buyers of real estate in these markets will not take chances on secondary locations. They will, however, take advantage of the opportunity to buy in the best locations because they feel their investments are safe there.
Clearly Rittenhouse Square, Washington Square, and Society Hill are considered in Philadelphia to be the best locations. We continue to see a flight to quality locations from secondary areas...there are people trading up and renters stepping into the market, there continues to be baby boomers who are disgusted with their stock market investments and are investing in great locations and helping their children buy homes.
Case in point: In the last 7 days we sold four homes at Parc Rittenhouse and one at The Warwick with prices ranging from $375,000 to $1.7 million. The inventory of exisiting condo buildings continues to remain very low (somewhere in the 1% range) and the prewar buidlings in great locations that have been converted to condominiums continue to sell. The new construction is still challenged by the market of today.
The bottom line is very simple. In uncertain economic times the smart buyers flock to the best locations where they can touch and feel their investments, where they are in control of their money, and where they call the shots as to when they will buy it, sell it, refinance it, etc. People are no longer comfortable allowing their life savings to be managed by others. Personally I have never done well whenever I have allowed someone else to invest for me and not been in control of my investment. Whenever I have had the ability to control my investment I have seen the returns outperform all other investment options !
Today, with the stock market acting very choppy and constant concern about which banks will be open tomorrow (even with fdic insurance being raised to $250k) prime real estate continues to be an option for the long term investor. Buyers of real estate in these markets will not take chances on secondary locations. They will, however, take advantage of the opportunity to buy in the best locations because they feel their investments are safe there.
Clearly Rittenhouse Square, Washington Square, and Society Hill are considered in Philadelphia to be the best locations. We continue to see a flight to quality locations from secondary areas...there are people trading up and renters stepping into the market, there continues to be baby boomers who are disgusted with their stock market investments and are investing in great locations and helping their children buy homes.
Case in point: In the last 7 days we sold four homes at Parc Rittenhouse and one at The Warwick with prices ranging from $375,000 to $1.7 million. The inventory of exisiting condo buildings continues to remain very low (somewhere in the 1% range) and the prewar buidlings in great locations that have been converted to condominiums continue to sell. The new construction is still challenged by the market of today.
The bottom line is very simple. In uncertain economic times the smart buyers flock to the best locations where they can touch and feel their investments, where they are in control of their money, and where they call the shots as to when they will buy it, sell it, refinance it, etc. People are no longer comfortable allowing their life savings to be managed by others. Personally I have never done well whenever I have allowed someone else to invest for me and not been in control of my investment. Whenever I have had the ability to control my investment I have seen the returns outperform all other investment options !
posted by Allan Domb at
2:03 PM
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