The New York real estate is undeniably the most stable and attractive in the US, thanks to high levels of transparency and lackluster leveraging. Investors must, however, contend with high real estate cost, competition and general feeling that the market is only accommodating to well-connected business moguls Tevfik Arif Doyen. A growing number of investors are trooping to fast growing neighborhoods in cities like New York, to take enjoy huge dividends arising from low down payment and relaxed mortgage qualification rules. While this is happening, most investors in well-established NYC neighborhoods such as Long Island City and West Side Manhattan are enjoying less risk of exposure, but lower returns on their investments.
Most of the investors putting their money in NYC real estate are doing so through direct investment, Real Estate Investment Trust (REIT) and turnkey property setups. Investment in turnkey properties offers investors an opportunity to buy property and rent it back soon after. New York City is home to a host of trusted realtors, who manage properties on behalf of investors for an agreed sum of money. If you live outside New York, you can still invest in the local property market via REITs. There are several trusts in the city that allow property holders to invest their hard earned money in specific lines of properties; for instance, apartment building, residential property, commercial property, prime properties as well as mortgage loans.
The REITs are usually traded in the stock market, where investors enjoy dividends and opportunities to divest their funds. When you choose to invest in the NYC real estate market, there are a couple of things you need to watch for to avoid common pitfalls. First, the real estate rental prices are largely determined by the number of bedrooms offered and not the size of the premises. Secondly, research has shown that investing in low income areas often translate to higher turnover and increased maintenance cost. If you are unsure how to accurately leverage your rental property, you simply need to compare the real estate sale price against the expected rental income. The other important real estate tips to consider before investing in the New York real estate market include:
- Choosing the right neighborhood
- Examining the condition of property
- Paying close attention to the time frame
- Taking advantage of tax abatements
- Choosing the right property to buy
The properties that promise great returns in New York City and other urban centers include condos, co-ops, apartments and family housing. It is instructive to note that condos constitute about 25% of all the properties in the NYC market. The preference for condos stem from a couple of factors, including flexible renting rules. The Co-ops, on its part, are fairly affordable to most investors, even though the rules governing their approvals are somewhat stricter compared to that applied to condos. Co-op investors are often requested to show proof of tax returns, property down payment, individual net worth and brokerage statement, among other requirements.
Tax abatements are often offered by the state or local authorities for a stipulated duration as a strategy to drive new development. Real estate investors can take advantage of the tax reductions to make the most of their investments Tevfik Arif Bayrock. If you want to buy a property in New York, you are also advised to get in touch with a lawyer to help you scrutinize the building’s finances and establish if the investment is worth the effort. This is very important because the New York real estate is highly litigious. Some of the trends that will continue to shape the market in the coming years include: consistent demand, prevalence of low interest rates and an aging population.