New York City, one of the most celebrated cities in the U.S., is an excellent place for those interested in investing in properties and earning some serious cash. U.S Central Bureau’s American Community Survey presented by the National Multifamily Housing Council has revealed that about 45% of housing in New York City is given out on rent. This figure is the highest among other cities in the U.S. To rent a place in New York City is also very costly. In fact, New York is the most expensive city in the world to rent and one of the costliest residential real estate markets.
R.D Clifford Associates, Inc., a New York Property Appraiser has been providing quality full-service valuation and real estate appraisal services to multi-industry clients and cross-disciplines in New Jersey, New York, and Pennsylvania. The company has 20 years of experience in providing real estate appraisal services and other valuation services.
There are ways to work around this expensive real estate market and invest in property even if you do not live in New York. Some companies focus on selling ‘turnkey properties.’ As the name suggests, investors can purchase a turnkey property, turn it around, and give it out on rent immediately. If you do not live in New York and would like to leverage on this ‘turnkey property’ opportunity, there are professional property management groups that can manage your property if you can trust them. If you know someone locally and can trust that person to manage your property for you, you can invest in a ‘turnkey property’. They will eat into your profit but help you manage your investment while you live outside the city.
As in a turnkey property, a ‘real estate investment trust’ permits local and global investors to participate in New York City’s real estate.
Via a REIT investors can invest in commercial or residential property as well as mortgage loans. New York City’s REIT is focused on commercial or retail buildings with respected properties like Grand Central Terminal or Union Square. REIT allows investors entry to a group of such properties that trade like a stock and provide dividend income (as they’re required to distribute 90% of their taxable income annually through dividends) and expansion opportunities. They’re also prone to risk in rising interest rate climates.
Top Tips when investing in New York property
There are some things to keep in mind if you plan to invest in New York City or New Jersey
- The more established an area, the safer it is to invest in today’s market say real estate appraisers in New Jersey and New York
- Invest in areas where New Yorkers want to live, and there is a lack of competition from rental properties.
- The more the number of rooms the higher is the rent of the premise. The size of the room does not determine the rent as much as the number of rooms
- Properties in lower income areas tend to have more maintenance issues as well as a higher turnover.