Introduction to NYC real estate market
With a view to diversifying your own investments, NYC real estate market is an interesting opportunity to be carefully considered, especially in the recent period when mortgages are affordable, and property prices will likely continue to increase in the coming years.
However, it is not a risk-free operation, and we wish to stress once again that a foreign market has different dynamics from that of your home country and it becomes imperative to rely on local professionals.
They will be able to provide you with detailed information and insights regarding all the legal and fiscal aspects.
Investing in the US real estate has been synonymous with steady growth, especially in the recent years and NYC housing market itself is still an excellent opportunity.
It is one of the most stable real estate markets in the world and offers top-class properties particularly for those who are planning to purchase in order re-sell or re-rent. We suggest contacting dedicated agencies who specialize in assisting their clients with this specific type of investment.
Again, it is crucial to hire trustworthy people or companies who can take care of each step of your investment process: this would save you a remarkable amount of time as well as a considerable number of on-site trips.
Of course, it is also possible for investors to buy properties directly from the owner, though these transactions are usually more complex as the buyers will have to face more challenging situations: while having to demonstrate your financial strength, you will deal with many other investors hunting for the same opportunities. However, it is still possible to succeed if the appropriate precautions are taken on time.
So, if you are planning to invest in NYC real estate we recommend going through the following points:
What is the primary purpose of your investment?
Are you buying a place for yourself which you will only utilize when in New York? In that case, your apartment will likely remain empty for long periods so your main goal may be to spend as little as possible. But if, as with most investors, your intent is to buy a property to profit from, your approach might be different. You may want to consider higher prices as buying for less may then result in profiting less. By the same logic, buying for more will result in higher rents and eventually higher profits.
2. There are two main types of New York apartments: Condo and Co-op.
Most NYC properties are co-op (cooperative) meaning they are owned by a corporation. Buying a co-op does not mean you will own the whole property, but only a part of it. The bigger the apartment, the bigger the share, just like corporate actions. A monthly fee will also be charged to cover all of the property management costs (insurance, maintenance, etc.). Every co-op has strict regulations which include the possibility of subletting your apartments. Also, to be able to invest in these properties, you will have to comply with tighter financial standards. Co-op apartments are usually cheaper, but be aware in advance of what your real needs are as renting will not be possible without prior co-op board approval.
On the other hand, buying a condo will be more expensive, but it will make you the actual owner and the buildings regulation and management board are usually more flexible. You are free to decide whom to sell or rent without having to wait for any approval. It is probably the best solutions for all the investors who are planning to profit from their properties.
3. Do not solely focus on the neighborhood prestige.
Location is important, but only a part of the story. It is just as important to evaluate what the area offers regarding commercial and transport services. And this is particularly true if you are planning to rent your properties: it will make all the difference for your tenants.
4. Know the building and the builder.
Conducting research on the construction company will make you learn more about its reputation and if its buildings quality standards actually meet with yours.
5. Take a visit the condo.
This is essential to have an idea of the area and the people living there and you could personally check the state of the building.If you cannot personally inspect the condo then consider delegating to someone you trust who can do the job for you. And do not forget about technology: Skype and (live) videos can be of great help.
Investing in NYC real estate is a good opportunity, but we will never stress enough the importance of relying on professionals with a recognized expertise and a solid reputation.
Thanks to their deep market knowledge they will be able to guide you towards your best housing opportunities, helping you diversify your international investment portfolio and avoid making wrong decisions.
Our firm is, as always, at your complete disposal for further information, get in touch.