July 17, 2024
Chicago Melborne City, USA
Real Estate

Where to invest in New York City – The Ultimate Real Estate Investment Guide

New York is famous for being one of the most expensive real estate markets in the USA and the world. It tops the lists all the time, and it’s known for its powerful tenants’ union. So, what exactly makes it so attractive to investors? And where to invest in New York City if you want to earn some money? These are all the questions that you’ll learn the answer to today.

The thing is that the market in NYC is very diverse. There are many differences between the city neighborhoods. In some, people compete for homes all the time. On the other hand, some are very luxurious and overpriced. That doesn’t mean there are no people ready to pay a premium to live there. So, if you want to invest here, you’ll have to think locally.

If you want to get the most profit from your investment, the safest bet is to get yourself a property you’ll rent. Of course, that doesn’t mean that you should aim for the most expensive thing you can afford and expect the best. Instead, look for something affordable that will rent out quickly. And if you’re not a US citizen and you want to buy a home, it can even be easier to go down this path.

Impact of the pandemic

As we all know, New York was the epicenter of the pandemic in the US. Therefore, it was hit pretty hard by the economic crisis. Thousands of people doing low-paying jobs were affected by the lockdowns.

Now, things are improving. However, it will take some time to recover from everything. The number of unemployed New Yorkers is steadily decreasing, and that’s good news. We can be sure that everything will get back on track, but we’ll have to be patient.

On the other hand, all of these problems brought lower mortgage rates. So, when it comes to real estate, it is still a completely viable long-term investment. If you buy an apartment and rent it out, your tenants will be paying your mortgage. And if you know a lot about the location you’re buying at, you can strike gold.

So, regardless of it being one of the most expensive real estate markets in the world, there are plenty of opportunities for investing here. Neighborhoods that are desirable to New Yorkers are those we can predict they will appreciate the most. And that’s where you should put your money.

Bay Ridge, Brooklyn, New York

Our first pick is Brooklyn. It’s one of the more affordable areas of the city, and Bay Ridge is surprisingly cheap. However, that situation is about to change. Lots of first-time homebuyers are advised to buy here. So, if you want to get your piece of cake, you’ll have to be quick.

Of course, there’s a bit more to the story. It’s a known fact that Brooklyn rentals are a popular choice, but Bay Ridge offers a suburban feel. And that’s something you can’t get in New York that easily. The reason for this is that the commute to Manhattan is long. And that prevented dense development. However, now there is a direct ferry service to Wall Street. And that has turned things around.

You can expect to pay about half a million dollars for a two-bedroom apartment here. That is one hundred thousands more than it was five years ago, and that trend will continue. Schools in the area are good, and there are plenty of amenities. All in all, it’s a great place to live, and therefore a fantastic place for investment.

Inwood, Manhattan, New York

Manhattan is prestigious and expensive. Everyone knows that. However, Inwood is one of the more affordable neighborhoods in it. And there are a couple of reasons for that. Firstly, if you intend to live there for more than five years, it pays out to buy rather than rent. And secondly, there haven’t been any new developments planned in this neighborhood. Therefore, you can be sure nothing will hurt the home values.

However, Inwood is located at the very tip of Manhattan. You wanted to know where to invest in New York City, so why are we pointing you to the edge of New Jersey? Luckily, the answer is pretty simple.

All the properties in this area are low-rise. They’re either single-family homes or apartments up to eight stories high. Local authorities are proposing zoning changes that will bring taller buildings to the area, but that still hasn’t happened.

However, a shortage of high-density apartments leads to a steady appreciation of houses that are already here. In the last five years, house prices have gone up by 14%. And that’s not a small number. So, if you want to become a real estate agent in the United States, Inwood can be a great place to start.

On top of that, if it’s possible to redevelop the property you buy and turn it into high-density housing, your returns on investment will be through the roof. All in all, this family-friendly neighborhood certainly is worth considering.

Washington Heights, Manhattan, New York

This place is yet another Manhattan neighborhood that offers plenty of opportunities for sound investments. Here, you can find condos that are selling for less than a thousand dollars a square foot. And that is a rare sight in NYC.

The thing is, there are several expensive colleges in this area. So, many renters here aren’t sensitive to rental rates. On top of that, since there’s more than one, you don’t have to worry that the market will collapse if the main campus closes. It checks all the boxes from the guide to investing in US real estate, so it’s almost a guaranteed win.

Homes here are appreciating slowly and steadily. An average two-bedroom home here will cost you about $650,000, while five years ago, they were selling for $550,000. That’s 5% appreciation per year, and for Manhattan, that’s great. So, if you’re wondering where to invest in New York City, Washington Heights might be the answer.

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