Often included on real estate websites and publications ‘top 10’ lists, for the investor looking for a smart long term place to invest their money, NYC real estate is the most profitable investment they can make.
It’s a well known fact that New York City is the epicenter of business. Though Wall Street comes to most people’s minds when they think of New York City, the hustle and bustle that drives this city makes it easy to see why it’s the strong hold of economic pursuits. Despite the seeming ups and downs of real estate across the country, 2013 was an excellent year for NYC real estate. NYC real estate developers profited from what almost seems a heaven sent state of growth. NYC real estate saw tremendous growth and progress in 2013 and the NYC real estate market shows no signs of slowing down any time soon. This new burst of development and growth is not only a boon to developers but for smart investors as well. With some neighborhoods in NYC real estate reaching a high that hasn’t been seen in at least a decade, this is the ideal time for those looking to invest their money in a solid market.
When it comes to NYC real estate, investing takes more than putting your money to work for you. Before you sign on the dotted line and any transaction takes place, the serious investor need to know a few basic things about NYC real estate. For one thing, an overwhelming amount of NYC real estate falls into two categories: co-op and condo. While the cost of investing in a co-op may seems lower, there are a few things to take into consideration. It is much easier to invest in a condo where approval process and a bit less strict than those of a co-op. The financial process called for when investing in a co-op, too, is often more complicated. As an investor the most important factor to keep in the forefront is that co-ops are typically harder to rent out. As an investor, the ability to rent out investment property will hinder the immediate return on your investment. Usually a condo can be rented out whenever you want without worrying about board approval. For this reason alone you might want to consider investing in a condo and, preferably, in a new development.
Investing in a condo you will want to do two immediate things: learn about the neighborhood where your intended investment property is located and familiarize yourself with the building and developer. You’ve heard it before but it bears repeating – when it comes to NYC real estate location is key. Learn what zip codes are prestigious, which neighborhoods offer the most within walking distance for your potential resident and what the public transportation options are. As for the building and developer, be sure to know what the developer has in the past. What other developments have they built in the NYC real estate market? With this kind of information public knowledge, your research is as close as the keys on your keyboard.
When it comes to price you will need to do your homework. From the beginning it’s vital you know why you are investing in NYC real estate. If you are investing in order to rent your NYC real estate property, find out what price per square feet you can get for your potential investment property. Keep in mind that you can garner more per month from a unit with two and three bedrooms as you can rent to multiple tenants. Lastly, though it’s not unheard of for foreign investors to buy NYC real estate sight unseen, it’s a smart move to see your potential property in person when you can also get a feel for the area at that time. There is no insurance like your own two eyes when investing in NYC real estate.
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