Best Pennsylvania cities to invest in real estate

There are many ways you can invest your money. The main difference between them is how long do you want to wait for a return on your investment. If you are eager to make a quick bang on the buck maybe you should look into the speculative investment like futures stock exchange, Forex or currently popular cryptocurrencies. But if you are a thinking about a long-term investment then you should try to invest in real estate. It might just be the right thing for you, if your plan is to rent, as that way you will have a steady return on investment.

For that reason, if you are interested to invest in real estate in Pennsylvania then we can help you choose the right place. But before we go into nitty gritty looking for the right location, let’s go step back and examine the pros and cons of real estate investment.

Expect a long term return when you invest in real estate
Your money grows slowly but surely

Invest in real estate  – pros and cons

First of all, if you have the money and you are not afraid to use it, real estates investment is generally a good move. Also, be aware that you will need to spend a considerable sum to acquire the real estate, and that your return will be very slow. On the flip side, it’s almost guaranteed that you will make a profit in the future.

So here is a list of things that are most beneficial and harmful things that come to people who invest in real estate.

Benefits of investment in real estate:

  • Steady return on investment
  • If the housing market booms you can turn a quick profit by selling the property
  • You will have tax benefits

Harms of invest in rental real estate:

  • It’s rare to have no problems at all with tenants
  • On rare occasions, the housing market can go into downturn making you lose your money
  • If your property is vacant for a long time it will hurt your cash flow
  • When you purchase property your money is tied into it. So that means that when it comes to the sale of your property there are some mistakes that you want to avoid.

This is not a definitive list as more things can be added, but its good way to see some of the most critical points. If any of those points connect with you, think about for a minute longer before you decide to invest in real estate.

What are the best Pennsylvania cities to invest in real estate for 2018

We are crunching the numbers and using data and science to tell you which places in Pennsylvania have had an increase in prices and development over the past year. Make no mistake, that while we are happy to recommend to you the best places to live, looking into investment is quite a different ballgame. We are examining the question of the best place to invest in real estate, so we are going to try to determine places with most future potential in the Keystone State.

So to let you get a better understanding we aren’t going to sugarcoat what we are doing. Certainly, you’ll appreciate that we tell it to you straight. In layman’s terms, we are looking to make you a good deal. How do you like that?
We’re doing it by finding places in Pennsylvania that are growing faster than average, but where property prices are below the average. Good thinking, right?

Best cities to invest into real estate in Pennsylvania by our calculations are:

  • California 
  • Milton
  • Palmerton
  • Grove City
  • Taylor 
Do you want to know how did we determine the best cities in Pennsylvania? We analyzed the market to find the undervalued property that is relative to pent-up demand.
What helped us to gain insight was the latest American Community Survey Census data for 2012-2016 compared against to the previous one done between 2011-2015.
So we made a list of criteria that we wanted to tell us:
where people want to live,
where people are willing to pay for the property,
and above all where the property is still kinda cheap.

So when we crunch the data we want to see which place is growing, where property prices have increased recently while its still “cheap” for Pennsylvania.

It is in small cities where you can find the best deals
Buy cheap rent high
We had set filters in place so we could differentiate good deals from the great ones. Property prices had to be within 20% of the state average, as any lower in our opinion is potentially a dangerous place. Prices of a property had to be on the rise in the last year, and cities had to have about 5,000 residents. As a result, the list boiled down to these five.

1. California

  • Population: 6,564
  • Median Home Price: $112,800
  • Population Change: -1.4%
  • Home Price Change: 13.9%

2. Milton

  • Population: 6,968
  • Median Home Price: $112,500
  • Population Change: -0.4%
  • Home Price Change: 5.8%

3. Palmerton

  • Population: 5,330
  • Median Home Price: $110,200
  • Population Change: -0.4%
  • Home Price Change: 3.1%

4. Grove City

  • Population: 8,170
  • Median Home Price: $119,400
  • Population Change: -0.5%
  • Home Price Change: 6.4%

5. Taylor

  • Population: 6,136
  • Median Home Price: $116,100
  • Population Change: -0.6%
  • Home Price Change: 3.8%

Big city life is more of a choice for you

It is one thing to examine data and make educated guesses, but personal preferences and obligations can lead to different choices. It might be that your choice is to invest in big cities like Philadelphia, Pittsburg, Harrisburg, Lancaster, Erie, etc.
So you might decide in the end that you like to invest in one of the big cities
A big city may be your choice in the end
So looking at the side of data we might argue with your choice. But, it’s understandable that living opportunities are larger in bigger cities. So in case you are for example moving to Pittsburgh, you might already be aware of areas which are good to invest. Just in case you haven’t had the time to prepare yourself properly for the move because you were looking for a property to invest in, you don’t have to worry. Still, There are great moving and storage companies in Pittsburgh that are ready to help you make the transition and let you focus on your business.

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