Investing in real estate is one of the soundest, and potentially lucrative practices that a business can make. However, to be successful, the investment must be in a market that is in demand, with values constantly on the rise. Breaking into such a market is not easy, and doing so requires more than just capital, but an intimate knowledge of the types of real estate investments that comprise that market and how they are maintained. No city in the world walks that balance between demand and difficulty more than New York, New York, and while investors from around the globe are constantly trying to get their foot in the door of the real estate market they are finding it more difficult than ever before. New York is home to many different types of real estate investment, so in order to make a successful business decision potential investors need to understand the difference, and choose the most suitable for what they are trying to accomplish.
One option in the New York real estate landscape is to purchase through a real estate investment trust. This too is an attractive option for investors from outside of the area, because they are buying in to a group of such properties. Profits and liabilities are shared among the pool of investors so there is less direct ownership, but also less additional cost and responsibility to each investor. There are several REITs currently operating in New York and purchasing into one may be a sound business decision if you have the initial capital on hand.
If individual ownership seems like a more attractive option, you can invest in a turnkey property. This is a property that can be purchased and immediately used as a rental property with little to no additional investment capital required in between. This is a particularly attractive opportunity for those who live outside of New York and are purchasing the property solely as a business decision, taking advantage of the lucrative market. The owner can then collect rent on the property as its value continues to rise with the market. However, one thing to be cautious about is the need to maintain said property in this type of an arrangement. The investor will have to come out of pocket to hire a qualified, trustworthy property manager to protect their investment.
Either way it is important to visit the city and see the properties you are considering for yourself. Being one of the biggest, and most populous cities in the world New York is home to different cultures and atmospheres around every corner. It is important to get a feel for what you are trying to invest in, understand the neighborhood and the property itself. From a business standpoint it is important to visit the building and make sure you are making a sound investment. While buying in to one of the hottest real estate markets in the world despite the risks may sound enticing, take the time to ensure that you are not purchasing an investment that will cost you more money down the road than it will make you.