Understand Risk, Unlock Value
 
As Philadelphians approach a new normal and the US economy recovers, the Philadelphia real estate market has erupted. Median Sales Prices have roared to the highest prices in 5 years (65%+ growth since 2017). And, Days on the Market for Philadelphia properties are 34% less than last year. If you’re interested in investing, understanding the following risk factors is key to unlocking value.

1. Systemic risk, or market risk, is the exposure inherent to the overall economy. For instance, the inflation rate was 5% over the 12 months ending May 2021, which will likely lead to an interest rate hike and higher financing costs.

2. Idiosyncratic risk is the uncertainty related to specific investments. You may be able to reduce this risk—and maximize your returns—by diversifying your portfolio with different assets.

3. Liquidity risk is the exposure associated with not having instant access to cash in an investment. With real estate, selling your asset offers you access to your equity. Alternatively, you could bypass selling your property and tap its equity by offering up your real estate as collateral for another investment.

Ultimately, the choice to invest in real estate is yours, and I’m here to help. Whether you’re a first-time buyer, motivated seller, seasoned investor, ambitious agent, or anywhere in between, I look forward to working together!

– Leron Grossman, Real Estate Broker & Investment Expert
VictoryRealEstateLLC.com | Office: 215-709-0909