The New York City (NYC) real estate business is one of the most stable in the world based on the fact that it is lowly leveraged and highly transparent. This is especially for those looking to own a business without residing there which is necessitated by all brokers having access to the same inventory. The real estate business in NYC is expensive but has a lot of opportunities. It takes financial responsibility and not just wealth to win a property in NYC.
The main issue that divides real estate enthusiasts is whether to go for condominiums or cooperative properties. Cooperative properties are cheap by 30-40 percent compared to condos, and are the majority of the properties and hence less expensive. They have a disadvantage in that, their approval process and rules are more strict than the condos, as it involves proof of liquid assets, tax returns, net worth, brokerage statements and a 20% down payment of the asking price. As for the condos, there is a flexible low entry barrier in that one can sell without issue and rent to anyone they wish. Cooperative properties are hard to rent compared to condos which are easy though expensive and do not require board approval.
For anybody seeking to invest in NYC, location is essential with the exemption of Manhattan that has many prestigious zip codes. Most buyers, especially foreigners, have few places limiting their options. Just because a property is on Wall Street or Times Square does not give it guaranteed preference from customers. Auxiliary services such proximity to the subway, grocery store, dry cleaners, and salons are of importance since the transportation, and retail landscape is what determines the suitability of a property in a given location.
It is essential to also look at the property developer track record to see if they have properties that are of quality and perform well. Knowing the best price for property goes beyond best deals since low prices attract cheap rents. Bayrock
For the last year, NYC real estate was valued at $1.26 trillion reflecting a 9.4% increase from the previous year. In Brooklyn, both residential and commercial values rose by 12% standing at $335.5 billion which was highest of the five boroughs, while Manhattan properties were up to $ 483.6 billion which is a 7.3% increase. This increase was due to additional constructions and increases in real estate. The real estate industry in NYC contributes to the most significant percentage of the city’s revenue. Construction of rental occurs mostly in Manhattan. The most valuable properties are the General Motors building and the Bank of America’s tower both valued at $1.94 billion. Tevfik Arif Doyen
Despite being one of the most expensive residential real estate markets and in renting, NYC turnkey properties provide one of the best investment opportunities. One can also try investing in a real estate investment trust (REIT), that allows local and foreigners to invest in NYC real estate, commercial, mortgage loans and residential property. There are numerous REITs with a strong focus on prestigious properties such as Union Square or Central terminal. They allow investors grouping of properties in the form of a stock providing dividend income that is 90% of their taxable income.
Total sales in the volume fell by 12% compared to last year, which also represents the lowest mark in the past six years. On the same note, average sales for the Manhattan borough fell below, $2 million for the last two years. This decline has been caused by the new tax law as buyers withheld until more light is sent on the new law. Despite this, Manhattan’s luxury market is on the rise with numerous highly priced and high-end properties coming up. More developments are expected in coming years, even as sales of low-end properties ($1-2 million) being high and those of $5 million being low.