The buzz in New York’s real estate is high. This famous city in America and the world presents rich opportunities for real estate investment. US Central Bureau’s American Community Survey presented by the National Multifamily Housing Council says that 45% of housing in New York City is given out on rent which is the highest among other cities in the U.S. To purchase real estate in New York is a costly affair which is testified by Savills Research which it reports shows New York City as one of the most expensive residential real estate markets apart from being the most expensive city in the world to rent a place.
Before you decide to put your money into New York’s land it is worth considering a few factors to ensure you’ve made a wise choice the most expensive city in the world to rent and one of the most expensive residential real estate markets
The Vicinity Counts
Uptown neighborhoods in New York attract foreigners to invest like bee to a honeypot, especially those who want to rent out their properties. The prestige associated with Times Square, Fifth Avenue, Central Park, and Wall Street is tempting enough not to want a scrutiny of the neighborhood before buying property there. The weakness in this overconfident thinking is that having an apartment in Time Square or any other famous neighborhood does not necessarily mean tenants would desire it. Tenants are also looking keenly at convenient facilities around the neighborhood. For example, is the estate close to the subway?Is the grocery store located nearby?So instead of focusing solely on a "hip" neighborhood, know what's in walking distance, because that will matter to the discerning tenants. Real estate companies in New York would dish out the same advice.
Credibility of the Developer is important
You may decide to invest in a condo or a co-op in New York. In any of the cases research becomes an important tool in your final decision to buy the property. In the case of a condo, discover the track record of the real estate company in New York, his past products, how they’ve performed. You could work solo or with a broker. If you're purchasing a co-op, find out about the cooperative board and acquire a good understanding of any future plans. For instance it they are planning to disallow pets or renovate the building which would require you to pay a large monthly assessment, you may change your decision to live in that building.
Understand the investment purpose
Investing in real estate is a subjective act. So your "best price" may not necessarily mean the best deal. It relates to the purpose behind the purchase. Ultra-net worth individuals may be buying $20 million+ condos as pied-à-terres to be whenever they are in the city. The idea to buy the real estate is to hedge bets against the marketplace. Within the next 3-5 years, they're hoping the condo will be worth 1.5x more than what they purchased it for. Most investors, however, are buying condos and apartments to rent out and turn a profit, which has a vastly different price point. If the investment is to gain a rent, the price goes upto $3.5 million, for a 2-bedroom or a 1-bedroom. A cheap price will fetch you a cheap rent, and a higher price point will earn higher rent.
Experience the property
A real estate appraiser knows that an intended purchase usually precedes a scrutiny of the location for most buyers. And so he values the properly fairly after doing his own assessment. Buyers or their trusted brokers must personally visit the apartment. Nose around the locality, check out the apartment for any downsides etc. With technology one does not necessarily have to visit the apartment personally if they located overseas. They can trust their broker enough and view the apartment on Skype or FaceTime, coming down only for the final closure.
Top Tips for investing in New York property
- The more established an area, the safer choice to invest in today’s market say real estate appraisers
- Invest in areas where New Yorkers want to live, and there is a lack of competition from rental properties.
- The more the number of rooms the higher is the rent of the premise. The size of the room does not determine the rent as much as the number of rooms
- Properties in lower income areas tend to have more maintenance issues as well as higher turnover.
Contact RD Clifford Associates for real estate appraisals
RD Clifford Associates, Inc. has been providing quality full-service valuation and real estate appraisal services to multi-industry clients and cross-disciplines in New Jersey, New York, and Pennsylvania.With over 20 years of experience in providing real estate appraisal services and other valuation services, these real estate appraisers truly value client relationships and believe that personalized service is essential.
