Being one of the most famous cities globally, New York City’s real property market presents unique investment opportunities. Compared to other real estate property markets, however, New York is quite expensive. According to a past Savills Research, the city is ranked top among most pricey residential property markets in the world. While the high rates may make you think that there is little investment opportunities, that isn’t the case. There are myriad ways of investing in this great city’s real estate market even if you are a foreigner. Without much ado, here are a few tips you need to remember:
There are many regions in New York City that tends to attract foreign investors, including Times Square, Fifth Avenue, Central Park, and Wall Street. However, it is important to note that just because a property is located in these spots does not mean that it will attract a big number of tenants.
Consequently, instead of focusing your search on famous neighborhoods, target locations that have basic amenities. According to major real estate firms and agents, the main aspects that you should concentrate on when it comes to the best location for a real estate property in New York City is the auxiliary services around the property. Other factors such as retail landscape and close proximity to the subway also dictate the value of a good neighborhood to invest in.
Set practical Financial Goals
The best rental rate is usually not the best to all tenants. Some of the most expensive apartments in any city tend to take a lot of time to rent out. Very few people will be willing to spend $15,000 for a one-bedroom apartment if there is an alternative going for $5,000. The best residential property that you can purchase in New York, therefore, should be a 2 to 3 bedroom apartment that costs between $2 and $5 million. Generally, you can easily rent a 2-3 bedroom apartments considering that there are several tenants looking for such apartments.
Carry meticulous research on the property and the developer
Before you invest in any property in New York, endeavor to do a thorough research. If you are planning to purchase a condo, for instance, strive to know the concerned developer of the building so as to get familiar with some of their past projects. You can also seek the services of a real estate broker to help you investigate some of the developer’s past projects and general status in the real estate market.
Similarly, if you are planning to buy a co-op, it is crucial to understand various aspects about the cooperative board in question so that you become aware of potential future rules that they can impose on the building. While most of these rules may be aimed at promoting harmony in the neighborhood, some of them (for instance, where tenants are not allowed to keep pets) may discourage potential tenants.
Other Factors to Remember
Other things that you should keep in mind when looking for a property to buy in New York include:
- Low income areas tend to have high turnover and more maintenance costs
- Evaluate the property’s sales price versus what you will earn back in rent
- Rent is dictated by the number of bedrooms and not the size of the property
- Never take too long to make a decision on a property because another person might seize the opportunity forcing you to start afresh.
Before signing any contract, it is critical to explore all the important elements of a property. Remember that the real estate invest that you make today will benefit your children and grand children. As a foreigner, to find the best real estate investment opportunity in New York City, strive to partner with a professional real estate agent to help you with the various aspects (legal and logistical) of the property.