- The New York real estate market is one of the most stable real estate markets in the world. The market has a high level of transparency and is surprisingly under-leveraged. This makes it a prime location for those who would like to invest in property but are not planning to live there.
- Unlike many other countries where property listings are not that open to everyone except for the brokers, the New York property listing is open and everyone has access to the same inventory: PrestigeInternational/NewYork
- If one is looking towards investing in property in New York City, you should know a few things. Here are some property market specifics in New York City.
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Should one invest in a condominium or a cooperative?
Most of the property in NYC is cooperative property. There is only a small percentage of the property that is privately held. In Manhattan, out of around 850,000 residential only around 64,000 units are condominiums and townhouses.
Buying a co-op is significantly cheaper by about 30% to buying a condominium. However, co-op property has a tedious approval process and the rules for owning such property are very strict. One requires proof of liquid assets, net worth, tax returns and brokerage statements. In addition, one should put a down payment of at least 20%. Condominiums are more flexible and one can rent and sell them without many problems. As for co-ops, one requires the board approval when renting it out.
2. Location is vital
The location of is an important buying consideration in New York. If one is a foreign buyer looking for property, he or she should not just go for the big names and popular streets. Buying a piece of property in Times Square does not mean that one will get a high value client to rent out the property.
Rather than focus on the well-known neighborhoods alone, one should look for amenities near the property such as the location of the sub-way, salons, dry cleaners, grocery and all that. The neighborhood is made of such amenities and retail landscape
3. One should know who developed the building and the quality of the workmanship.
Before one settles on a building, it is important to do a research on the building and the record of accomplishment of the developer. One can work with the broker but also needs to do some background research. It is important to look for such information as other products that one has bought, how the property has performed and if there is any negative market feedback on the developer.
4. One should set the best price for the property
New York City does not have anything like a good deal. The best price is not the best deal for the property. Instead, one should have the reasons for buying the property. Most of the investors buy property for speculative purposes. There has been a trend where investors buy property and watch it double up in price in around five years. Moreover, highly priced condominiums fetch a higher rent. However, if the property is too expensive, chances are that will find it hard to get clients to rent. For example, no one would be willing to spend around $15,000 for a one-bedroom house while he or she can get a comparable house at about $4,500
Investing in New York real estate requires due diligence and careful planning. It is important for one to seek expert advice in areas where one is not knowledgeable. This way one makes tidy profits out of the investment.