New York City is one of the biggest cities in the United States. Many people dream of living and working here. They spend months and even years collecting money for moving to New York. But as apartments in New York are very expensive, not many people choose to buy them. They usually opt for renting. And if you have an apartment in New York there won’t be time for it to be empty because the need for apartments is very big. For this and for many other reasons, buying an investment apartment to rent out is a move a lot of people have been making over the last few years. And if you want to be one of them, here is where you’ll find plenty of useful information regarding this topic.
Why doing this is a good idea?
Like it’s already mentioned above, New York City is a very well-known city and a lot of people move there for plenty of reasons. Some move there to have a fresh start, some move there for big amounts of job opportunities, some even move there to get an education and live the best years of their lives to the fullest. No matter the reason, plenty of people come to New York every year. This, of course, means that the need for apartments for rent is huge. This is good news for those who own apartments there. You’ll have someone living in the apartment all the time because of this. And this means you won’t ever be in debt after you pay off the apartment you purchased.
A lot of people want to move to NYC.
New York real estate market prices aren’t planning to go down any time soon. This means that even if your plan to rent out the apartment fails, you will be able to sell it for the same amount of money. And if you want to have some profit from that too, you can. Just wait a couple of years and invest a little into that apartment and you’ll have a profit for sure.
Another reason why having an extra apartment is that you can use it for storing things temporarily if needed. A lot of people do this with their investment apartments. You can let professionals help you pack your belongings and relocate them to the apartment.
Prices of apartments in New York City
Everyone knows that New York is very expensive. Especially when it comes to the real estate market. The median home value in New York is $670,000. This is a lot bigger than the national average. For this amount of money, you could buy a studio apartment in New York. Well, depending which part of New York we’re talking about but we’ll touch on that topic later.
This means that if you are planning on buying an investment apartment to rent out in New York City, you will have to take out a mortgage because not many people have these huge amounts of money just laying around waiting to be spent. And taking out a mortgage is a lot harder than it sounds. You have to be eligible to take out such a big mortgage, meaning you already have to be earning a lot of money. This can set you back in your finances but over the course of a few years, you will pay this loan back. How come? Well, the median rent in New York is very high – $2,500. The national average is $1,500. This, of course, depends on the size of the apartment, the location, and the condition.
In order to buy an apartment in NYC you might need a loan.
Best parts of the city for investing
Certain parts of New York are better for investing in an apartment than others. If you want your apartment to be occupied all year round and your rental income to be steady, you want to buy an apartment in the part of the city where rent doesn’t cost more than $2,500. This is because a lot more people are willing and are able to save that much money than some larger amounts. Plus you also have to have in mind that your tenants are the ones who will have to cover the moving expenses also at the time. And even if they hire inexpensive movers such as manhattanmoversnyc.com, it’s not something a lot of people can handle.
If you invest in an apartment that costs over a million dollars, you will certainly have to put bigger rent. This lowers the number of people that are able to afford paying rent and it can lead to having your apartment empty for a certain period of time. You want to avoid doing this if you are a new real estate investor. That’s why I decided to give you some insight into the best parts of New York City for buying an investment apartment.
Brooklyn is a borough of New York City. It’s very big and it’s not as expensive as Manhattan. Manhattan is the most expensive part of NYC and is exactly the place you want to avoid when buying an investment property. Plus, it’s very hard to find an apartment for sale in Manhattan. But Brooklyn, on the other hand, is a completely different story. Brooklyn is where you’ll find nice apartments with good prices. And Brooklyn is a very popular part of NYC. Most people who move to NYC for the first time live in Brooklyn. It’s a very diverse borough and it’s also very well-connected to Manhattan.
Queens is an even more affordable part of NYC. It’s more of a suburb so that means that most of the homes here are actually houses. But you can find apartments and condos with reasonable prices here. Buying a condo in Queens is a good idea. This is usually where young couples move to start their families. Queens is known for having a lot of good schools and it’s exactly another reason why people move here.