It’s time to buy! Yes, but what, how much, and how?
Buying real estate market in New York City is your next resolution. Well done! In addition, we have nothing but good news to tell you. The New York real estate market is doing well, it is even flourishing and offers dozens of condos, lofts, new apartments, and townhouses for sale, just waiting for you, the future owner. Whether it is to live there or to invest, buying real estate in NYC remains a good investment and fiscally interesting. So, what do we start with? Contact your real estate agent and read on.
Real Estate to Buy in New York City
If you want to invest long term in New York City, a co-op is exactly what you need. This type of property represents 70% of the market. In a cooperative building, the owners get a share of the cooperative association and all the shareholders jointly own the building and its units.
The boards of the co-op play an important role and determine if you can rent your home or make major changes there.
Co-op boards of directors, on the other hand, are all-powerful in determining who owns their buildings. It can therefore sometimes be difficult to buy and Tribeca apartments for rent in New York, and even when you can afford it.
New York co-ops are generally older than condos, but the good news is, they’re generally less expensive.
Over 70% of rental demand consists of one bedroom (2 rooms) and 2 bedrooms (3 rooms). Be careful, some buildings should be avoided and the assistance of a competent and patient real estate agent will be useful to you to avoid setbacks and make the right choice.
Mine, Just Mine: the Condos
When you buy a “ condo ” apartment, you are the full owner of it, as well as parts of the common areas of the building (for example, the gymnasium). Although the condominium has a co-owner association, it won’t be as involved as counseling a co-op, for example, owners can easily rent or sell their home whenever they want.
On the other hand, they are generally more expensive – homeowners may have to pay common fees and charges. Depending on the amenities and services offered by the building, especially if it is new. However, despite sometimes very high prices, condos are selling very well and very quickly.
My House in the City: the Townhouses
A townhouse is generally a small building of three or four stories, adjacent to other buildings on the same block; it can serve as a single-family house or have several apartments spread over its floors.
Although townhouses are narrower than detached houses, they often have courtyards and roofs and offer more privacy than an apartment. There are 8,300 of them in Manhattan, so very few.
This is why they also tend to post high prices (from 5 to 20 million dollars depending on the neighborhood). The most beautiful townhouses, called brownstones (because their facade is made of dark bricks), are mostly located in Uptown between the Upper East Side, Upper West Side, and Harlem where opportunities are still available.
Likewise, in Downtown Chelsea, Gramercy Park, Flatiron, Greenwich Village, West Village, and Tribeca. The good option is to look on the Brooklyn side, with more affordable prices and lower property taxes.
My Very Short House: the Fully Detached House
Without wanting to discourage you, this type of property is quite rare in New York City. For example, the Frick Museum was one of those typical detached houses that one could find in Manhattan in the 19th and early 20th centuries.
From now on, you have to go a little outside this district, towards Ditmas Park, or Forest Hills, if you want to buy a house just for yourself.
Alone in the World, or Almost: the Loft
It is a bit tricky to define a New York loft because many lofts have been “built from scratch” to recreate the ambiance and originality of the old ones. But generally, lofts are spaces of old industrial or manufacturing buildings transformed into residential area. They stand out for their high ceilings, large windows, large spaces, and minimal interior walls.
Most of the originals (and the nicer ones) can be found in neighborhoods like Tribeca, Soho, and Williamsburg. It is important to bear in mind that the purchase of real estate in New York has its own time and procedure characteristics and it is strongly recommended that you use a real estate agent like nyrentownsell. Either way, the buying process is pretty much the same. To find out more, read our (great) article on how to become a homeowner in New York.
Investing in New York Real Estate Is Always a Good Idea in the Long Term
You should first know that Manhattan and Brooklyn benefit from the MLS, a “Multiple listing” where more than 95% of properties for rent or for sale are listed. Since everyone has access to the same database, working with multiple real estate agents is unnecessary. Choose one, and a good one! There are some best places to live in NJ with low taxes as well.
Why is investing in New York stone interesting? Because prices have multiplied by 4 in 30 years (source Miller Samuel Appraisor). Thus in Manhattan, the Lower East Side district saw its prices increase on average by 168%, as for that of Grammercy Park, it underwent an increase of 109% between 2010 and 2019.
On the Brooklyn side, it is the same trend with a 211% price increase in Cobble Hill and 192% in Greenpoint! Buying your home in NY thus remains the best way to build up savings and enhance your property over the long term rather than paying rent.
A Dynamic and Profitable Rental Market
Given current house prices, the New York real estate market remains inaccessible to many. The rental demand remains very well supported in all neighborhoods of New York City and the average rent in Manhattan was $ 3,217 in 2019.
In addition, more than ⅔ of 8.5 million New Yorkers are tenants according to the New York City Department of City Planning.
Real estate in New York is most likely to be a worthwhile investment property when rented for an extended period. With time and rental income in your pocket, the chances of a successful investment increase dramatically. Investing in New York is always a safe bet, so you just have to wait… and cash in.
A Fiscally Attractive Real Estate Transaction
There are significant tax benefits for all real estate investments made in New York. For example, mortgage interest paid on investment property is fully deductible.
Interest on loans used to buy, build, or improve the property is deductible up to $ 500,000 for single taxpayers and $ 1,000,000 for married couples. The property taxes and all other expenses “ordinary and necessary” for rental investment property are tax deductible up to $ 10,000 according to the IRS.