Real estate property makes for an excellent investment, whether it is an office space or a residential unit. In a city like New York where space comes at a price of gold (quite literally in some cases), real estate investments are very common. If you are looking into the prospect of investing in a New York City Apartment, there are a number of things you should know, including the factors to consider when purchasing a unit.
Below are important guidelines on investing in a New York City apartment, which should allow you to make wise and profitable decisions.
Finding the Right Apartment
The key to a profitable investment is finding just the right type of property. Some of the most popular types of real estate property in New York are single bedroom apartments, single detached family homes (townhouses), and Lofts in certain areas such as West Village and Tribeca. You have to be very particular in terms of the type of unit you purchase in relation to what the current market demands.
At any given time, there are thousands of yuppies all over Manhattan looking for a place to live. This means one bedroom apartments are mostly likely to be rented out fast since there is an overflowing need for singles residency. In addition, burgeoning families (young married couples with young children) are also very common in New York so a townhouse will certainly be a good investment prospect as well.
Pricing and Location
Once you have an idea of what the market demands, you can start looking for actual properties with the help of your trusted broker. Keep in mind that in order for this endeavor to be profitable, the purchase price of the apartment has to be on the low end of the spectrum (i.e. if the comps are sold at $1800 in a particular area or building, you should go for as low as $1500 assuming your broker is a talented negotiator).
In addition, you should also consider the location of the property since Manhattan has a number of up and coming neighborhoods. Battery Park City, for instance, is excellent for families since it is close to schools and is surrounded by public parks where children can play. On the other hand, SoHo and West Village is very popular among artists because of the sheer number of lofts and open-layout type apartments.
Brainstorming with your broker extensively regarding excellent locations is highly recommended before you even start viewing prospective properties. This would save you a lot of time since you will not have to view apartments that do not suit your requirements as per your investment goals.
Note: Since Hurricane Sandy, real estate investors have become quite picking in terms of purchasing properties that are located below Canal (TRIBECA) and similar areas due to severe flooding. This is something you would want to keep in mind. However, this does not necessarily mean that properties around this area are not as good because there are excellent buildings that provide the best amenities anywhere in the city.
When investing in a New York City property, you have to ensure that the returns will be worth all the time and money you are about to put into the venture. This can be accomplished by working with an excellent broker who has extensive experience in finding just the right investment property for buyers.