Collingswood—and Haddon Township too—have such a fabulous reputation that The JFKLiving Team have had an unbelievable amount of first time buyers wanting to zip straight into 08108. We get it... it’s where our office is and we love it here.
But this area has seen insane home appreciation over the last 5 years and now is nearly, totally, unaffordable for first time homebuyers on a budget.
RELATED POST: THIS COLLINGSWOOD HOME DOUBLED IN PRICE IN JUST 4 YEARS
The good news for buyers looking to buy their first ever home is there is a hack! ☝️
Rather than continuing renting and trying to save up every month until you can afford 08108 which may be years into the future (at which point home prices will be even higher), a far more successful strategy may be getting yourself into a more affordable home, building equity over a number of years, and then extracting that equity to buy the home you really want!
805 Woodlawn Ave, National Park
As an example, let's take a property that's currently on the market—805 Woodlawn Ave in National Park—and go through the numbers. It's just been listed at $200,000. Yes, it needs a little bit of TLC, think:
- ripping up the carpets, installing some laminate or LVP flooring
- throwing a fresh coat of neutral paint on all the walls
- updating the bathroom with some new tiles
This might set you back $10,000, depending on how much you DIY versus hire a handyman to do it all for you. And it also depends on the quality of materials you use. Update all these things? This home you buy for $200,000 could be worth $250,000. With just a few week's worth of work!
Equity Gained
That's already some significant equity in the home. Now let's discuss home appreciation. A 'normal' amount of home price appreciation is 3% per year. So in just 3 years, with your updates, this home could be worth $275,000.
Now, if you purchased 805 Woodlawn Ave in National Park with a 10% down payment ($20,000), you could already have over $80,000 or $90,000's of equity in this cute little 2 bedroom rancher. Isn't that magical? 🧙
Sell vs Rent
After a few years, you might decide to make a move and put that equity to work. So now you have a choice to make:
- put 805 Woodlawn Ave, National Park on the market, sell it on to a buyer, and use that profit you make as a downpayment on your next home, or
- use an equity unlock tool to extract the equity you've gained in the home, use it as a down payment on a home in the town you actually want to live in (i.e. Collingswood!), and keep 805 Woodlawn Ave as an investment property, renting out to tenants and beginning a property portfolio
Having home equity literally gives you so many options, and we'd be thrilled to talk to you about it. Send us a message and let's figure out a time to strategize your home purchase.
805 Woodlawn Ave, National Park is currently on the market and you can make an appointment to see it by visiting the listing page and hitting Tour This Home on the right.
