NYC Property Investment: Can anybody with good knowledge of NYC property scene give me some advice on investing there? (New York: for sale, real estate market)
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I am thinking of investing in perhaps one property in NYC. As a non-US citizen ( I am British), I understand that I am not entitled to buy Coops. I have a whole range of questions:
1) What are the best website(s) used by New Yorker who want to look at whats for sale?
2) Given the depressed US property market would it be ill-advised to invest now in NYC? Have property prizes suffered in NYC as a result and is it expected to decline further if it has?
3) What areas should one buy in order to rent it out easily?
4) Would one expect a Manhattan apartment bought now to appreciate significantly over the next 10 years?
5) What are the current mortgage interest rates for American bank loans?
6) What other charges do landlords pay? Tax? Service Charge? Building repairs?
7) Everyone is talking about Brooklyn and Williamsburg as the place to invest in. Is it all hype? I know there are some beautiful properties overlooking the Manhattan skyline from Brooklyn. Would it be better to invest in Brooklyn instead of Manhattan?
8) Are there any recommended agents that I should seek who will give honest guidance? I know that may be impossible but had to ask!
Anyone interested in this subject please contribute your views.
I am thinking of investing in perhaps one property in NYC. As a non-US citizen ( I am British), I understand that I am not entitled to buy Coops. I have a whole range of questions:
1) What are the best website(s) used by New Yorker who want to look at whats for sale?
2) Given the depressed US property market would it be ill-advised to invest now in NYC? Have property prizes suffered in NYC as a result and is it expected to decline further if it has?
3) What areas should one buy in order to rent it out easily?
4) Would one expect a Manhattan apartment bought now to appreciate significantly over the next 10 years?
5) What are the current mortgage interest rates for American bank loans?
6) What other charges do landlords pay? Tax? Service Charge? Building repairs?
7) Everyone is talking about Brooklyn and Williamsburg as the place to invest in. Is it all hype? I know there are some beautiful properties overlooking the Manhattan skyline from Brooklyn. Would it be better to invest in Brooklyn instead of Manhattan?
8) Are there any recommended agents that I should seek who will give honest guidance? I know that may be impossible but had to ask!
Anyone interested in this subject please contribute your views.
Cheers!
CS
I think you're about five years late too late to prosper, and if I were you, I would definitely hold out to see what happens with the market over the next couple of years.
The prices of homes are very high. The market is saturated, and who knows what will happen. Most predict things will get worse before they get beter.
I check the Real Estate Market daily, on such sites as the Multiple Listing Service (I think the abbeviation is MSL of LI Real Estate) but if you google NYC Real Estate, many sites will come up.
I've seen homes that have been on listing for a year, then see them come up again.
I think urban areas are best for rentals.
Last I checked, I was quoted 5.6%, say for a 30-year fixed with excellent credit and a little closer to 5% for 1 year fixed.
Adjustable Rate Mortgages are, of course, less.
I suppose if you aren't here to manage your property, you would pay a property management company.
As far as expecting a Manhattan apartment to appreciate over the next ten years, as a landlord and other properties owner, I would certainly hope we'll get over this slump and get back to some nice appreciation over the next 10 years.
I do not trust real estate agents to be candid and honest. They have to make a living even in this saturated market in NYC. I take any and every thing they say with a grain of salt and do my own research if/when I'm interested in a home shown to me.
Perhaps you may want to take the route of hiring an agent that will work for you as a buyer rather than working with an agent who is working for the sellers. And even an agent working for you can't make money unless or until you buy.
Personally, I would neither buy nor sell property in NYC at this time. I wanted to do both but am instead sitting tight for a while.
I am thinking of investing in perhaps one property in NYC. As a non-US citizen ( I am British), I understand that I am not entitled to buy Coops. I have a whole range of questions:
1) What are the best website(s) used by New Yorker who want to look at whats for sale?
2) Given the depressed US property market would it be ill-advised to invest now in NYC? Have property prizes suffered in NYC as a result and is it expected to decline further if it has?
3) What areas should one buy in order to rent it out easily?
4) Would one expect a Manhattan apartment bought now to appreciate significantly over the next 10 years?
5) What are the current mortgage interest rates for American bank loans?
6) What other charges do landlords pay? Tax? Service Charge? Building repairs?
7) Everyone is talking about Brooklyn and Williamsburg as the place to invest in. Is it all hype? I know there are some beautiful properties overlooking the Manhattan skyline from Brooklyn. Would it be better to invest in Brooklyn instead of Manhattan?
8) Are there any recommended agents that I should seek who will give honest guidance? I know that may be impossible but had to ask!
Anyone interested in this subject please contribute your views.
Cheers!
CS
How are you doing? Hope you decide what's right for you to do.
2.) The US market has been hit hard by the recent housing "slump"--but some markets much worse than others. Manhattan has been virtually unaffected (for the most part) by this slump, and the 4 other boroughs have not seen a huge drop off in activity or prices. At least not nearly as bad as any other major US city or other areas. Do your research and invest away. Now is a good time to buy in the boroughs, other than Manhattan--which it is still a sellers' market there.
3.) You could buy anywhere in Williamsburg along the "L" train line, or Long Island City, Brooklyn Heights, Park Slope, and even Astoria and Greenpoint are safe "easily-rentable" bets.
4.) Manhattan is a safe bet, always. Very little land, highly desirable, and rock solid appreciation for the most part. Do your homework and look into the good 'hoods. Most anything purchased in Upper East Side, Upper West Side, Tribeca, or the West Village will always appreciate.
5.) I'm not 100% sure. Consult a mortgage broker on that one.
6.) Landlords typically pay heat/water/maintenance/common electric and heating (for hallways, stairwells), and vacancy costs (upgrades, etc).
7.) I think the 4 boroughs outside Manhattan are better buys right now--because we've seen a slight price dip. It's a buyers' market moreso, in most of the borough's hoods.
8.) You know, if an agent is a member of the Real Estate Board of New York, and is licensed, they will most likely be professional. Professionals are trusted to be honest, but unfortunately some don't play by the rules. I think most do, though.
So if you would neither buy nor sell, you expect NY properties to hold their price and be stable dispite whats happening everywhere else in the US?
Interesting article.
I can't say that I expect NY properties to hold their prices.
I'm a landlord as well.
In 2003, I bought a new property and have gained about $250,00 equity between that time and 2006. Home went from $300,000's to $600,000's.
The person next door bought pretty much an identical property for $80,000 less than I bought mine the year before.
I gave up more than half of my equity in 2005 to refinance for some other ventures, including buying a fixer upper with a friend and we made about $60,000 on that one.
That was the market then, not now.
I will not go under $100,000 equity on the newer property now, any refi bets are off because of the state of the market/
Also, the last time I got an experienced agent's guess on how much I could sell my home for, they were talking about listing it for $30,000 less than I would want for it.
Nor would I buy as investment to sell because too many homes just aren't selling
Agents say it's a buyer's market, but I disagree. Even where owners are coming down a bit, the homes still aren't selling.
I think a major factor is that investors went building crazy putting up homes in any empty space.
As well, homeowners went refinance crazy with the great appreciation between early 2000 and 2005. Many are not negotiating, not budging, on their sale prices because they refinanced their equity.
As well, foreclosures are ever rising based on subprime loans, 100 financing, interest only loan options, ARM loans, no-documenttion loans and all of the other loan options that allowed anybody and everybody to buy homes whether they could really afford them or not.
The market sucks right now.
Also, landlording is no easy business. Rents are high in NY and it's necessary to be sure that tenants can pay, on time.
I'm a very hard sell landlord. I had a vacant property for almost a year a few years ago because folks have horrible credit. I do have a dream tenant now who's never been late in three years, no complaints, never broke anything, but I sure took a loss before I got her.
Landlords in NYC need to be very careful who they rent to. Evictions can take months, even a year with tenants simply occupying your property for free and hopefully not destroying everything in it.
For me, I'm chilling and relaxing on the real estate right now.
I did make a little money on stocks early this year - Altria, Nike, and Exxon.
*smile*
Not quite like the real estate investments, but it's better than losing $.
Times are hard in NYC and my bills are rising.
I dont' have extra cash to play with anymore and I'm sure not playing in this market.
I have a friend who's made a little money on investments in Florida. So many folks from NY are moving there, the prices have risen over the past few years.
Last edited by DonnaReed; 12-12-2007 at 12:11 PM..
what do you guys think about the commercial real estate market in NYC? I hear that so far the fundamentals are still good but real estate in general is just a volatile industry subjected to cyclical cycles of the economy. NYC usually has a unique market movement compared to other regional markets, both in high-end condos and commercial buildings. But I wonder how things really are these days.
JJBradleyNYC - Thank you so much for all that infomation. I will check all those websites out. Williamsburg sounds very interesting, but since I am a UK investor living and working in London, I think it just may be easier to rent a property out Manhattan as I am not around. I expect Williamsburg to appreciate at at higher rate though.
I find it an alien concept that landlords have to pay for utilities in NYC. In London, that would be the responsibility of the tenant and therefore encourage the user (tenant) to be me more thoughtful and green about heating and electricity.
DonnaReed - Your advise of caution will be heeded as you seem to be an experienced NYC landlord. I will have to use a management company to look after and vetting tenants as I am not there to safeguard my interests. I have been stung once by a tenant who stopped paying rent and know how difficult it can be to sort things out.
My only counter argument is that for a UK investor the £ is strong against the $ and therefore we may make something on cimple cuttrncy exchange as I would expect the $ to strenghten in time.
Are you saying its no longer a buys or sellers market? Surely it can only be one or the other. I am looking to invest and hold on to a property for about 10 years.
Maybececi - As a foreigner, I have no idea about commercial property. I am sure the others may be able to shed some light.
General comment: I have been looking at the website www.realdeal.com
Apparently NY estate agents read it.
Does anyone know the best place for a UK investor to get an % mortgage loan as the most competitive interest rates? I am getting quotes from US brokers of 6% - 8%.
JJBradleyNYC - Thank you so much for all that infomation. I will check all those websites out. Williamsburg sounds very interesting, but since I am a UK investor living and working in London, I think it just may be easier to rent a property out Manhattan as I am not around. I expect Williamsburg to appreciate at at higher rate though.
I find it an alien concept that landlords have to pay for utilities in NYC. In London, that would be the responsibility of the tenant and therefore encourage the user (tenant) to be me more thoughtful and green about heating and electricity.
DonnaReed - Your advise of caution will be heeded as you seem to be an experienced NYC landlord. I will have to use a management company to look after and vetting tenants as I am not there to safeguard my interests. I have been stung once by a tenant who stopped paying rent and know how difficult it can be to sort things out.
My only counter argument is that for a UK investor the £ is strong against the $ and therefore we may make something on cimple cuttrncy exchange as I would expect the $ to strenghten in time.
Are you saying its no longer a buys or sellers market? Surely it can only be one or the other. I am looking to invest and hold on to a property for about 10 years.
Maybececi - As a foreigner, I have no idea about commercial property. I am sure the others may be able to shed some light.
General comment: I have been looking at the website www.realdeal.com
Apparently NY estate agents read it.
Does anyone know the best place for a UK investor to get an % mortgage loan as the most competitive interest rates? I am getting quotes from US brokers of 6% - 8%.
regards
CS
Creative Source,
Check out - MLSLI.com. That site lists Brooklyn properties.
I'm curious. What type of property would you like to invest?
Many, I propose most, tenants in NYC pay their own electric and gas, and
most landlords pay water bills and some pay for tenants heat.
I have a couple of two-family properties for which apartments have separate gas meters and separate electric meters. My tenants have their own gas and electric accounts and pay their own utilities.
(The cost of heat in the winter and air conditioning in the summer can run high, not to mention the large screen televisions, theatre system attachments, computers and all...running up electricity 24 hours a day in many homes these days.)
As far as a buyer or seller's market, I say it's a "chill and do nothing right now" market...*smile*
Predicted to get worse before it gets better, but I get your counterargument,
plus you're not investing to do a quick flip, you're looking at ten years.
I shudder to think that property owners wouldn't gain from significant appreciation over the next TEN years.
Brooklyn is busy these days. Lots of new developments, new properties, new charter schools opening and expanding.
Good Luck in your search.
Come back and let us know where you decide to purchase if you do.
Don't forget to invest in a property with separate meters.
*smile*
By the way, an 8% interest rate sounds high to me.
What type of propertys do I want to invest in? Well I have a natural tendency to favour old build propertys with more period features. Essentially, a property in a location with a high rental demand to both tourists and residents, a condo with no restrictions, and an area where one can still get further capital appreciation.
I guess in my particular situation, I am interested in the US because of the weak $ as I earn in £s. I expect the $ to regain some strength in the coming future.
Question:
What do you think of the Trump SOHO development. Hype or not?
The smallest 420 sq foot studio costs $1200000 but they claim they would expect hotel guests to pay $900/night for it. Service charge to the hotel is $3000/month and no units have a kitchen ( like most hotel rooms). Its sounds a little crazy to me. What do you all think??? Do you think there could be at lest a 50% occupancy?
What type of propertys do I want to invest in? Well I have a natural tendency to favour old build propertys with more period features. Essentially, a property in a location with a high rental demand to both tourists and residents, a condo with no restrictions, and an area where one can still get further capital appreciation.
I guess in my particular situation, I am interested in the US because of the weak $ as I earn in £s. I expect the $ to regain some strength in the coming future.
Question:
What do you think of the Trump SOHO development. Hype or not?
The smallest 420 sq foot studio costs $1200000 but they claim they would expect hotel guests to pay $900/night for it. Service charge to the hotel is $3000/month and no units have a kitchen ( like most hotel rooms). Its sounds a little crazy to me. What do you all think??? Do you think there could be at lest a 50% occupancy?
I think most buildings with Trump's name on them do succeed, but Trump has those who absolutely hate his developments and those who absolutely love them. Anyway, $900 per night? Hmmm...maybe, but that seems very steep. I have spent $550 per night (on a weekend night/$329 for weeknight) on Hotel Gansevoort, in the meatpacking district about 1/2 mile away or so. The Gansevoort is about 3 or 4 years old and is by no means "luxury" although it is very nice. It tends to attract the model/fashion/film/jetset crowd. The Trump tower will be luxury though. At $900 per night, it would have to be.
I'd say a 50% occupancy rate is low--NYC is extremely tight in terms of hotel room availability. As-a-matter-of-fact, NYC is undergoing a hotel building boom currently, as the city has fewer hotel rooms than other much smaller markets such as Chicago, Atlanta, and a couple other cities.
I'd look at other projects, personally.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
