The US is a sellers’ market with prices climbing fast in the last three decades. Baltimore’s case is no different where the market is red-hot. Hence, if you want to invest in alucrative market or sell your home for a good price, Baltimore is the right place.
The city is an attractive location to live with a diverse mix of neighborhoods and communities. From hip areas to historic corners, Baltimore offers a range of housing options for those who plan to relocate or wish to settle in the city that is known for its crab cakes and world-class historic market. Here are things you should know before putting your money on real estate in Baltimore.
The City Has Potential
Throughout the US, real estate markets are experiencing high prices and this trend is expected to continue until supply meets housing demand. Thus, if you’re going to invest in a property today, you can expect that the value of your home will increase over time.
For example, Zillow predicts that the value of real estate in Baltimore will increase by 8.7% next year. The good news is, there are still homes located in coveted neighborhoods that are affordable compared to other US cities. To illustrate, Mount Washington in Baltimore City County is one of the highly desirable places to live in Maryland offering residents a suburban feel with dense greens and plenty of parks. It is also a safe residential area.
Moreover, its proximity to restaurants and grocery stores all contribute to its attractiveness. It’s also accessible should you require home services such as appliance repair, pest control, or plumbing service. Local agents say that there are still parts of the neighborhood that will be built and developed, so you can find opportunities for purchase or investment.
What It Will Cost You
Depending on the condition of the property you’re buying, annual maintenance costs for homes in Baltimore vary. Considering that the city was founded in 1729, it is normal that many of the existing homes for sale are old.
Although these structures are beautiful with their historical architecture, you might need to pay close attention to a home inspection especially on issues like the foundation, roofing, electrical wiring, and plumbing. Remember that even if these houses can be sold ‘as is’, you must still be informed of latent defects such as mold infestation, among others.
Another area that is of interest when purchasing property in Baltimore is the tax rate. You must pay real estate property tax and personal property tax. The state income tax rate is 2-5% on taxable income while the average combined state and local sales tax rate is 6%. On the bright side, the cost of living in Baltimore is lower than other prime cities and property tax rates are around the national average.
Baltimore is a sizzling market for investors with its appreciation rate higher than other cities and towns in the state. Now is a good time to take advantage of low interest rates, steady job and population growth, and affordability in the city by purchasing property.