The whole world was really shaken by the economic crises caused by the real estate market crash a few years ago. Fortunately, after the rough patch, the real estate properties are once again the lucrative investment. According to the statistic, the property value will be only increasing, so this is maybe the perfect time to invest in NYC real estate, and here’s why.
Why buying an NYC real estate is a good investment?
The data shows that the people who had purchased property in NYC in 2008. and sold them a decade later made a significant profit.
Since New York is such an alluring city, it has thousands of new residents each year. Every newcomer is looking for a new home. And they are faced with the same question – should they rent or buy a house?
That’s why the New York real estate market is stable is it can be. You can always profit by investing in the NYC real estate – by reselling it or by renting it.
Let’s prices of real estates in the period of 2008. to 2018. speak for itself:
- Median prices of the NYC properties from $500,000 to $677,000.
- Brooklyn prices recorded the
- Prices for real estate in Brooklyn had the biggest surge, rising 50%
- The median price of the Manhattan homes change from $850K to $1.1 million
- Around 230 homes were and sold after a decade
- Approximately 230 homes that were bought in Queens in 2008., were sold for a 32% profit in 2018.
There is a significant growth in prices at NYC real estate market in the last decade.
In which NYC neighborhood should you buy a property?
When it comes to buying an NYC real estate, which neighborhood will you choose can make a lot of difference.
Still, it varies on the reasons why you are buying property in the first place. To live there or to rent it? That will also determine the type of property that you want to purchase.
Nevertheless, when it comes to investing in New York property, you should know that up-and-coming neighborhoods are the real estate gold.
Since they are still developing, you can get more square footage for less money. The lower prices mean that you will be more likely to be able to afford the down payment and qualify for a mortgage.
Once the development of the neighborhood is complete, your real estate will have a much higher value. Investors in the real estates in the Brooklyn neighborhoods of as Bushwick, Crown Heights and Clinton Hill have experienced relatively high returns in recent years. New Jersey property is also a good potential investment, but you should do a bit of research if you take moving to New Jersey into consideration.
On the other hand, the prime neighborhoods may provide a lower return, but they are a much safer investment.
The real estate prices in these areas never drop significantly, which isn’t a case for faster-growing areas that can be the last ones to recover from the price drops.
Which type of real estate should you consider?
Your finances, your needs, and your desires are the things to focus on when choosing the real estate to purchase. Of course, you should know what types of homes will be a better investment in the future.
A house
Owning a house is an American dream. If there’s a white picket fence around it, the dream is complete. Still, that may not be so doable in NYC. The big houses are selling much slower and cheaper than the few bedroom townhouses. In addition to the square footing, the location is also important.
People who are buying a house in New York are often the ones that plan to move and live there. Usually with their families. It is still a great investment and it is more convenient than renting. If you are looking to buy a house and move to New York than you should consider hiring professional movers to help you with your relocation. If you choose a reliable moving company with years of experience like U. Santini Moving and Storage Brooklyn, you can be sure that your belongings are in the safe hands while you’re looking the perfect new home in New York.
House with multiple bedrooms is the dream of many, but those properties are not such a good investment.
An apartment
If you really want your property to pay off, then think smaller. Studio and one-bedroom apartments are the big hit on the NYC real estate market. They are easy to sell and to rent. With so many small apartment design ideas, their condos are also very convenient for flipping. The utility bills and maintenance are much cheaper. If you plan to live in it, it will even be more affordable than to rent.
If you wish to buy an apartment and then to rent it, smaller apartments generally work best, as they are typically the easiest to rent out. As a renter, you will profit more for the 2+ bedroom apartment on the monthly basis. Still, when it comes to selling, it can take a while because bigger apartments have lower demand on the NYC real estate market.
Always consult a real estate agent
Hiring a real estate agent is a must in New York. Especially if you are new to the city.
That way, you will know that there are no legal issues with the property, which is a very important thing when buying a home. The real estate agent will also explain which neighborhoods are more lucrative and great to live in or which properties will be ideal for renting. The key is to find the reliable and legitimate real estate agent. It’s similar to choosing the right movers for your relocation. Like it is easy to find cheap movers in NYC area that are trustworthy, it is also easy to find affordable real estate agency.
Just make sure to do a thorough background check and establish that real estate agency is legit and reputable.
Should you invest in NYC real estate this year?
Real estate market prognoses are saying that this year will be a good year for investing in NYC real estate.
Still, is it a good idea for you, it will depend on your individual financial situation. If you will be needing money in the near future, investing in the property isn’t such a good recommendation. Especially if you are expanding your business to New York, and searching for new office space. It best to rent at first until your business grows strong before purchasing real estate.
Whatever your financial situation is, it is best to consult a financial advisor. A financial advisor can make a forecast of your potential income and expenses from the property, as well as the potential returns on your investment.