“The apartment rents here in Philadelphia can run from $1,500 to $2,200 a month,” said Prince Thomas ’99, social activities director for the Philadelphia Chapter and a financial planning specialist with Citigroup, Smith Barney. “With a little work, alumni can transfer those $1,500 rental payments into $1,500 mortgage payments which means about $300,000 of house. By doing all this, they get a nest egg and an investment that has the ability to appreciate in value.”

According to Thomas, real estate in the Philadelphia area has appreciated in value an annual average of 15 percent over the last two years. And, he says, there are many other reasons to buy. “Because you own it, you don’t have to worry about rent increases, losing your home to a landlord who wants to give the property to someone else, or throwing away money on a rental that you might not ever own. Finally, interest on a mortgage is tax-deductible so even if you’re paying the same amount you were paying on rent, you’re saving what you’d pay in taxes while investing in your future.”

Thomas should know. He made his first home purchase last December. “I bought the home for about $158,000 and had it appraised in April. I was floored when the appraisal came back at $258,000.” But Thomas had a little help. His fiancée is in real estate and her boss, George Cahill, helped him find his home. Cahill, a realtor with Coldwell Bankers, is also the host of an afternoon talk show on Philadelphia's “Money Talk” radio station, which features programs on investments, real estate, debt consolidation, insurance, and other money matters.

So when Thomas started thinking about hosting a home buying workshop for the Philadelphia Chapter, he knew just who to ask. “Cahill agreed to share some of his considerable knowledge about the real estate market—the importance of a pre-approved mortgage, how to negotiate, what to do if an appraisal comes back low or high, home inspections, and more. It was great to have his expertise,” Thomas said.

As the activities director of the Philadelphia Chapter, Thomas was pleased with the event turnout and the enthusiastic response he got from alumni, “we have so many things to compete in the Philly area in terms of culture, sports, restaurants, music,” Thomas said. “Because we have that competition, we felt like we needed to take a step back and develop some events and activities that were outside of the norm. This was a great one.”

For more information on the Phildadelphia Chapter of the Penn State Alumni Association, go to www.psualum.com/chapter/philadelphia.