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CONDOS : Are they still a good investment in Philadelphia ?

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CONDOS : Are they still a good investment in Philadelphia ?

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090515c.jpg : 2000.gif

10 Rittenhouse -------------------------------------------------------------------------------- : Waterfront Square

 

A Tour of the Residences at Two Liberty Place

 

TOP PHILADELPHIA CONDOS (in City Center)

 

1. Residences at The Ritz- : 1414 South Penn Sq., 2008-9
2. 10 Rittenhouse ---------- : 130 South 18th Street, 2009
3. Western Union ----------- : 1101-11 Locust Street, 2007-9, (100 units)

4. The Murano -------------- : 2101 Market Street, 2008, (42 stories)
5. 410 at Society Hill ------- : 410 S Front St, 2015-16 (55 units)
6. Resid. at Two Liberty Pl. : 50 South 16th Street ???
7. Waterfront Square ------ : 901 North Penn Street 2006 (780 units, 5 towers)
8. Hopkinson House ------- : 604 S. Washington Sq 1963-73
9. Independence Place---- : 233-241 South 6th St 1980-85
10. The Dorchester --------- : 224-30 W.Rittenhouse Sq 1970-71

11. Parc Rittenhouse-------- : 225 South 18th Street 1926
12. Packard Grande--------- : 111 South 15th Street Vintage rebuilt?
13. Citiview -------------------- : 2001 Hamilton Avenue ???
14. Academy House --------- : 1420 Locust Street 1977 (37 fl. 570 units)

15. The Barclay -------------- : 237 South 18th Street 1910
16. Res@ RittenhouseHotel : 210 West Rittenhouse Sq ???
17. The Ellington ------------- : 1500 Chestnut Street 1922-27, renovated
===

> CityCenterTeam : http://www.centercityteam.com/tag/center-city-philadelphia/page/3/

> Luxury focus of another agent:

Allan Domb and his highly reputable real estate brokerage firm have been known throughout the United States as key contributors to Center City Philadelphia’s luxury condominium market. Today, Allan continues to specialize in Center City luxury condominium sales in buildings such as: 10 Rittenhouse, 1706 Rittenhouse, 1820 Rittenhouse, 1830 Rittenhouse, 1900 Rittenhouse, 220 West Rittenhouse Square, Academy House, The Bank Building, The Barclay, The Dorchester, Hopkinson House, Independence Place, The Lanesborough, The Lippincott, The Murano, Parc Rittenhouse, The Philadelphian, Pier 3, Pier 5, The Rittenhouse, Society Hill Towers, Symphony House, Wanamaker House and The Warwick Condominiums.

 

(Allan Domb’s Key to a Successful Investment Portfolio):

Over the years, many people have decided to add real estate to their investment portfolios, with Center City condominiums being their investment of choice. Many bought anywhere from 10 to 40 investment condominiums in Center City. As a result of their performance, numerous buyers have shifted their investment focus from mutual funds and the stock market to Center City condominiums in core neighborhoods.

In fact, one investor recently did an analysis and determined that the $350,000 they invested ten years ago in condominiums is worth about $1,000,000 today and produces an annual income of $60,000. They also did analysis that showed if they had invested the same $350,000 in the stock market over the past ten years it would be worth approximately $450,000 today with no real annual cash flow. Let me say that again…the condos produced $550,000 of equity greater than their stock option and produced the annual cash flow of $60,000!

==

> see: http://allandomb.com/invest-in-real-estate/

 

MAP : larger version

philadelphia-center-city-hotels-and-sigh

==

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Condos were a Great investment over the last 10 years (was it: 2006 - 2016 ?)

 

n687gjR.jpg

 

Allan Domb’s Key to a Successful Investment Portfolio:

===========

EXCERPT:

Over the years, many people have decided to add real estate to their investment portfolios, with Center City condominiums being their investment of choice. Many bought anywhere from 10 to 40 investment condominiums in Center City. As a result of their performance, numerous buyers have shifted their investment focus from mutual funds and the stock market to Center City condominiums in core neighborhoods.

 

In fact, one investor recently did an analysis and determined that the $350,000 they invested ten years ago in condominiums is worth about $1,000,000 today and produces an annual income of $60,000. They also did analysis that showed if they had invested the same $350,000 in the stock market over the past ten years it would be worth approximately $450,000 today with no real annual cash flow. Let me say that again…the condos produced $550,000 of equity greater than their stock option and produced the annual cash flow of $60,000!

==

> http://allandomb.com/invest-in-real-estate/

 

That 10 year period included some of the best UP years in the 18 year cycle, thanks to falling interest rates

 

TNX / 10 year Note interest rates ... all-data : 10-yrs : 5-yrs :

eOA0ljV.gif

 

...and Philly did not suffer so much (as many other cities) in the 2008-2012 Downturn

 

Nevertheless, Philly Home prices, have followed the 18-year cycle ... PB.

K3ZEt7L.jpg

 

Why?

Because JOBS flooded into Philadelphia since 2010:

 

fredgraph.png?height=400&id=SMU423796400

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"The market is hot, and everyone is flipping" (property) - observed a recent visitor to Philadelphia

That comment reminded me of this article

 

Report: It’s 50 percent cheaper to buy than rent in Philly

 

Philly’s one of a few Northeast cities where that’s the case

by Melissa Romero Oct 20, 2016,

shutterstock_2928803.0.jpg It’s still better to buy than rent in Philadelphia.Courtesy of Shutterstock

 

Philly’s real estate market has experienced a record-breaking year with home prices hitting an all-time high since the Great Recession, but buying is still a better deal than renting, according to a new analysis.

Trulia’s latest Rent vs. Buy report finds that it’s 50.8 percent cheaper to buy than rent in Philadelphia. It’s ranked 9th in U.S. cities where buying a house beats renting an apartment.

In fact, it was just one of two Northeast cities that made the cut. The rest of the U.S. metros where it’s cheaper to buy are located in the south.

In the U.S. overall, buying is still a better bet. For folks who move every seven years and can put 20 percent down, it’s 37.7 percent cheaper to buy than rent.

That $1,300 monthly rent in Philly may sound a bit off to some renters. But to come up with that number, Trulia included monthly rent, renter’s insurance, and one-time costs (i.e. security deposits) in their calculation. They also accounted for general inflation, which they suggest averages about 2 percent a year.

It should also be noted that Trulia calculated the median home values and rents using March 2016 numbers. Since then, Philly’s home values hit an all-time high in the second quarter, with the median price rising to $145,000.

So what’s this all mean? The researchers write:

Homebuyers should also be more concerned about prices outpacing rents than any possible rate hike by the end of the year. This is because the tipping point for rates is proportionally much higher than the tipping point for prices. In other words, rates would have to go up much more than prices for the costs of buying a home to be parity with the cost of renting. [...] Still, we think either scenario – aggressive price or rate increases – is unlikely to play out anytime soon.

So you can still get your money’s worth around here by buying, even with this city’s hot real estate market. But keep an eye on those rising house prices.

Low Interest rates have helped

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LOOKING at Long Term Property Cycles

Pretending the World Wars did not have a major impact (which is unlikely, still...)

 

Cycles suggest next major High, maybe 2025-6

 

But a 1-2 year dip could be due soon - "the mid-Cycle correction"

 

B91ztVk.jpg

 

Philadephia%2C_Pennsylvania.jpg

A Vintage postcard, showing the 1930's skyline. Note the prominence of City Hall.

 

NX5iTmh.jpg

Philly's skyline in 1989 at an 18-year Cycle Peak. The construction of new skyscrapers had begun - after a long pause.

 

JECC0k3.jpg

Philadelphia's night time Skyline, circa 2017. New skycraper growth is evident everywhere.

 

iqXDDbz.jpg

Philadelphia City Hall. Philly still has many classic buildings, reflecting its rich history. The William Penn statue had a special significance.

Designed to be the world's tallest building, it was surpassed during construction by the Washington Monument and the Eiffel Tower, though it was at completion the world's tallest habitable building. It was the first modern building (excluding the Eiffel Tower) to be the world's tallest and also was the first secular habitable building to have this record: all previous world's tallest buildings were religious structures...

 

XPW8Ge0.jpg

One Liberty Place towers over City Hall

City Hall was the tallest in Philadelphia from 1901 until 1987, when it was surpassed by One Liberty Place ending an unspoken, gentlemen's agreement that limited the height of buildings in the city to be no higher than William Penn's hat atop City Hall.

> https://en.wikipedia.org/wiki/Philadelphia_City_Hall

CYCLES ?? assuming fixed 18 year cycle (theoretical)

1901 : Phil City Hall completed
1919
1937
1955
1973
1991 / 1989 : see chart above, One Liberty Place was completed in 1987, two years prior to the cycle peal
2007 : US Property cycle peaks

==

A cycle identified long ago was the 18 1/3 Year property cycle

 

ADh32mm.gif

 

It shows up here too, possibly

1KXHAQA.jpg

201307164.png

Other data added

 

And maybe also here - but only two peaks line up

ARzgMPU.jpg

 

THIS one lines up better

mzVVq5Q.gif

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Map

These are the 15 most expensive homes currently on the market in Philadelphia proper,

from a $16 million home in Society Hill to a raw penthouse space in Rittenhouse Square.

 

These are the 15 most expensive homes currently on the market in Philadelphia proper, from a $16 million home in Society Hill to a raw penthouse space in Rittenhouse Square.

This map, listed in order from most to least expensive, will be updated regularly. Got a tip? Leave a comment or email Curbed Philly to give us the low-down. Head this way to see the most expensive homes for sale in the Philly metro region.

 

1 232-236 Walnut Street

$16,795,000

The most expensive home for sale in Philly clocks in at 5,400 square feet and features just two bedrooms, two full baths, and two half baths. The surprisingly small number of bedrooms—one is the master, the other is a guest suite—leaves extra room for huge walk-in closets and dressing rooms, as well as a balcony off the master that looks out to the property’s equally large garden. It originally hit the market in September 2016 and has been on and off the market since. It also happens to be located right next to the Nelson building and the Ritz-Five movie theater, of which developer Tom Scannapieco plans to build his latest high-rise.

 

Webp.net_gifmaker__31_.0.gif via Joseph White, Keller Williams Real Estate Tri-County
232 Walnut St
Philadelphia, PA 19106

 

2 10 Rittenhouse, 32nd floor penthouse

Jaws dropped when this penthouse on the 32nd floor of 10 Rittenhouse hit the market in early October for $15 million. And it wasn’t because of the 9,000-square-foot interior, which is a nearly raw space—the 360-degree views were and are the most impressive. The penthouse is indeed hooked up for heating, cooling, and plumbing, and that price tag comes with architectural plans to turn the space into an actual home.

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