Philly (Kensington ) vacant lot opportunity ?? Question

[Ruben S Paul]

Hello BP community,

So I came across a vacant lot opportunity in the northern side of Kensington, closer to Kensington and Allegheny. I was skeptical of this idea originally because of how bad the area is . Literally and open air drug market, although i have seen what investors have done in East Kensington, Port Richmond , Fishtown and can’t help but to think investors may find their way upwards. Especially since it’s so close to 95, and the Market Line, close to downtown and other hot spots. Does anyone know if investors may be working their way up into Kensington at any point or will I have to wait this one out for 10 + years if I buy??? I also noticed many out of town investors buying land in this part of Kensington as well. Your answers are greatly appreciated!!

[Will Fraser]

Hi @Ruben S Paul, welcome back to the BP forums!  

One of the key distinctions I've learned in real estate is this one:  investing versus speculating.  I would venture to say that what you are describing is that speculators have been buying up lots in Kensington (speculators do such things because they are using money to purchase items that they think may do this or that), but investors are only the ones who purchase based on what the market is proving a willingness to do.  It's nuanced, but important.

I mention this to encourage you to make a proactive decision about your total financial strategy.  What percentage of your dollars do you want to go to Investing?  How about Speculation?  And finally how about Insurance?