I bet we all agree that New York is the best and most stable real estate market in the world today, this has been attributed to the fact that the city is under-leveraged and it is also highly transparent. For you to afford a property in New York city, you have to be financially fit and financially responsible, remember, being financially responsible is more than just having a big bank account. In this articles, we shall look at things to know and consider before you invest in real estate business in New York city.
- Condominium vs Co-op
Most properties in New York city are cooperative, for instance, if you consider Manhattan Island which has 847,000 residential units, 22.7% of those units are privately owned. This means 192,000 are privately owned, while the townhouses and condominium combined sum up to 64,000. From the figures above it is evident the cooperative are more, a reason that has led them to be significantly cheap. However, the price is just one part, the approval process and the rules governing the co-op are very strict when you compare them to those of condo. Some of this rules and approval processes for co-op includes a proof for tax returns, down payment of not less than 20% of the total purchase price, liquid assets, and net worth.
- Research the Building and the Developer
In case you decide to buy a condominium, it is very important for you to find more information of the building developer so as to understand his past. work closely with brokers to figure out the developer’s performance, past products and whether the product you are about to buy is worth it. In case you decide to buy a co-op, make it your business to know everything about the cooperative board, for instance, get to know what future changes that are likely to be made to the building, might they change their policies and not allow pets and so many others.
- Know Your Best Price
By knowing your best price I don’t mean the best deal because I don’t think such a thing exist in New York city. The most important thing is to know why you intend to invest, for instance, you may find an individual with an ultra-net worth buying a property worth twenty million dollars that he will be using while he visits the city, The are other buyers who buy properties in New York city hoping that in three to five years the property price will have increased by 1.5, such people tends to leave the apartments empty at times. For renting purposes, for a one bedroom or two bedroom apartment, you are likely to spend 3.5 million dollars, remember how cheap you buy an apartment, the cheaper the rent will be. The best price for an investment apartment should range between two to five million dollars.
- Location of the Property
Where a property is located is important, and by location and don’t mean neighborhood since at times it does not matter that much.For instance in case you buy a property in Manhattan you won’t have neighborhood problem since many zip codes in the location are prestigious. This point is usually important to the foreigners who aim at renting out their properties. Most people prefer buying apartment located in Wall Street, Central Park, Fifth Square and Times Square but that is not enough reason why the tenant should prefer your apartment, so you have to make sure there are auxiliary services around the apartment so as the apartment can be desirable to the tenants.