Why Buying a Property in NY is a Good Investment
You hear it time and time again that New York is a great place for real estate. The investment opportunities are always present. New York City real estate alone is worth something to the tune of one trillion dollars. This amount of money is intimidating and you would expect only heavy real estate players to be involved and only the rich are able to purchase a property; but NY isn’t just Manhattan. You have plenty of other choices for investing in a piece of property, such as Staten Island, Brooklyn, Buffalo, which also have very attractive opportunities for investment. There are other counties that you can look into, such as Queens, Nassau, and Westchester counties. All these and more are key areas that big and small investors go for.
New York is one of the most famous places on earth and a place that has investors and potential buyers wanting a piece of the action and finding a property to buy. As with any other type of investment, there are a few things to keep in mind when searching for property.
Low-income areas: These are areas that are defined as locations where residents have a low income per capita. In New York, the Bronx has the lowest income per capita. Buildings, houses, and apartments in low-income areas tend to have many maintenance issues, as well as high turnover. This is a major issue in either scenario: if you’re planning to live on the property or planning to rent it out.
Concerning rent, that is determined by the number of bedrooms rather than the size of the property. So, if you’re buying property to rent in the future, this is a factor that you have to take into consideration so you can estimate how much you can get in rent.
Affordability-challenging: It’s no secret that NY isn’t just expensive; it’s very expensive. The cost of living is high, but so is the standard of living. The high cost of construction coupled with a limited amount of space in the city also makes it expensive.
Here are some reasons that make investing in NY property a smart move.
Plenty of choices
For potential buyers, there are several choices in the kinds of homes available. For instance, you can buy a condo which gives you full ownership of the property to sell or rent it as you please. Or maybe you would prefer a co-op which is ideal when looking for a long-term investment. Another option is townhouses. The NY tri-state area has plenty of residential homes for sale and rent so you might be interested to search in this area as it has a variety of affordable houses and apartments. The tri-state area, also commonly referred to as greater New York, comprises three states; New York, New Jersey, and Connecticut. The area is recognized as having the largest collection of high-rise office real estate.
Some of the same things that make NY expensive are the same reasons to buy property in it. Throughout history, it’s been a center of wealth for real estate, stock markets, banking, fashion, the arts, and a host of other industries which make it worthy. There’s a cost to pay if you’re going to be living in a city that is high in culture with a worldwide status.
By the same token, this opens a wide door for work opportunities. It’s a place where you can think of expanding your business or opening a new one. Chances are if you have a good business plan, NY is a great benchmark to measure its success. With its melting pot, there is plenty of room for new businesses.
Buying can be cheaper
When it comes to making NY your permanent residence, in the long-run, buying property will be cheaper than renting. In some areas, like the East Village, what you spent in purchasing an apartment could pay off in around 4 years’ time compared to what you would pay in rent. But in other areas, such as Little Italy or Soho, renting might be the better choice. However, you should also put into consideration how much you would spend on transportation if you have a business in NY but don’t live there. Depending on your situation, it could make more financial sense to buy rather than to rent.
Property value stability
The prices of properties in NY are stable. Its stability is driven by demand, and the demand to live in NY is stable and has been stable throughout nearly all its history. From high position executives to new college grads, people have their own reasons to move to the city.
Being an owner of property sets you free from facing rent increases, unreasonable landlords, and more. Interested purchasers should do their homework and explore the data of properties for sale. When buying in New York, it’s about buying the right property and not just buying any property. The right purchase will make your property a true investment and worth your money.