Purchasing real estate in the Big Apple may seem like a dream come true for most people. Whether looking to uproot your life in the city that never sleeps or just pursuing smart property investments in NYC, you should brace yourself for a lot of research. Considering the skyrocketing apartment purchase prices. The truth is that being a homeowner feels out of reach for many New Yorkers. Since there has been a significant increase in the number of renters during the past decade, investing in a property will sooner or later pay off.
As it turns out, a multitude of millennials flocking to NYC cannot afford to buy an apartment immediately. Which is why the demand for rentals still remains strong in spite of high costs. Rental income investors may expect great returns on their money. So, if you don’t intend to live in the apartment you are about to purchase, the strong rental profit potential is something that you wouldn’t want to miss.
In a city where a vast majority of people rent rather than purchase, investing in a rental property could be a good deal. When shopping around, make sure to establish your budget limitations. And target neighborhoods that Dumbo NYC can help you relocate to. Although NYC property may bring unique investment opportunities, it’s no secret that the local housing market is very competitive. As it turns out, NYC is seeing huge growth in housing prices. It’s not surprising at all that so many people choose to commit themselves to pay monthly rent instead of owning a property. Consequently, that might be your chance to obtain a steady flow of money with a little effort.
Guidelines for buying an investment property
Purchasing a property where you won’t live makes sense in the cities with a strong property investment potential. There’s an increasing number of people who view NYC apartments as wise investments. Here are some of the insightful tips you may find helpful when embarking on such an adventure. When purchasing an investment property, you should make wise decisions based on the:
of the structure that suits you best.
How much time are you willing to invest?
If purchasing an apartment is part of your short-term financial strategy, then renovating a fixer-upper could be a smart idea. However, if you plan on sticking around as a landlord for a while, consider a property that will stand the test of time. Your main goal is to reduce the vacancy time and make the best possible tenants come your way as soon as you list the apartment.
Do you have the initial capital for smart property investments in NYC?
For a favorable start, make sure you are able to finance upfront repair and maintenance works and to cover vacant months. Owning a rental property is an extra source of regular income. However, you should line up your finances early before buying it.
Pick the right neighborhood
Selecting smart property investments in NYC in a strong and growing environment could be a real challenge. One of the critical factors is certainly the location itself. While buying a house is always a good investment, the location of the property can add massive value as well. People moving to Brooklyn seem to be attracted by real estate hot spots such as
- Park Slope,
- Red Hook.
Also, young professionals find Dumbo a perfect neighborhood to call home due to its 19th-century warehouses, artsy vibe, spacious condominiums with high ceilings. So, to make the most of your rental income, pick the neighborhood where growth is anticipated. If you need to sell it at some point, you could still be confident of getting a decent return.
Decide on the property size and type
To get started as a new real estate investor, it’s highly recommendable to purchase single-family homes first. Owning a multi-family house involves more upkeep and higher maintenance expenses. While old homes and charming, what matters the most is their investment potential. Therefore, opt for the homes that were built in the last couple of years to keep maintenance and renovation costs low. When it comes to the property type, most brokers suggest condos due to more flexible rules for renters. NYC renters probably know that tiny studio apartments are the norm. So, those with a huge moving load are forced to rent storage units NYC to keep their items safe.
But, whatever the size, new investors usually need a team of professionals to manage their property. Even if you live far away from the property, you can be sure that a reliable property manager will take care of the rental property basics. Ideally, smart property investments in NYC will make your cash flow positive so that you can afford to hire a property management company.
Collaboration between landlords and property managers
It’s no secret that good landlords with quality rental properties are more likely to build fair, long-term relationships with their tenants. Desirable landlords are collaborative, always follow the law and are willing to go the extra mile to reach any agreements with their tenants. There are a lot of rules in each state that protect both landlords and tenants.
While most landlords take on all the responsibilities, at some point they may need additional help managing their property. Thankfully, a good property manager is your ally on your way to becoming a successful landlord.
Some of the most common reasons why hiring a property manager make perfect sense:
- You live far away from your rental property
- You are not familiar with the landlord-tenant law
- There are several properties that need to be managed at the same time
- You don’t have enough time to handle all rental-associated tasks.
Here’s what kind of support you can expect from a reputable property management company:
- Completing all the paperwork according to the local legislation
- Negotiating rents and leases
- Organizing maintenance and repair works
- Completing routine inspections
- Providing financial statements
As you can see, smart property investments in NYC could be a valuable long-term financial solution if you plan them thoroughly.