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Bryan M, Real Estate Pro in New York

Looking to invest 1/2 million in NY real estate, looking for price/rent data and advice on neighborhoods.

Asked by Bryan M, New York Sat Oct 1, 2011

My partner and I are looking to invest money in city area real estate. We have begun doing some preliminary research into city neighborhoods, and have heard good things about Astoria and NJ right across from Manhattan. We are looking for more information - is there a place to easily find price to rent ratios for different neighborhoods? Also, are there neighborhoods that are already known for having high ratios? Thanks.

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Manhattan offers unique opportunities, although of course, prices are also higher. Rents in Manhattan at this time are excellent and inventory is flying off the the shelf with vacancy at only 0.7%. What is necessary to keep in mind is the type of building in which you purchase, if the management is superior and therefore costs are kept at a minimum. Manhattan will always give you the greatest return on your dollar, both in term of capital appreciation and as well as monthly returns.
Fernanda Forman
VP, Director of Relocations
TOWN Real Estate
fforman@townrealestate.com
646-300-6013
0 votes Thank Flag Link Wed Oct 5, 2011
Certainly rents in Manhattan are the highest. I work with foreign investors who have very specific cash flow expectations, and low vacancy rate. 500k priperties I've come across address both. If you are comfortable with a minimum of 5 year investment horizon I can lead you in the right direction.

Regards,
Armen
http://www.luxdwellings.com
0 votes Thank Flag Link Sat Oct 1, 2011
Bryan I am a real estate agent and also an investor. One thing to consider is in my experience there are always trade offs when investing in pretty much anything and real estate is no exception. higher cap rates = higher risk. You have to decide what level of risk is acceptable for you in any investment you make. Personally I find great b and c class multi families in brooklyn and they have always done well by me. Let me know if I can help you in any way.

Cyrus Zafaranloo
czaf@uptonrealtygroup.com
917 776 2977
0 votes Thank Flag Link Sat Oct 1, 2011
Hi Bryan, 
Congratulation on your first investment! It is big step. 
My name is Tamara Aleksiy I am working in Real Estate company on Manhattan we do sale, rentals and helping client to find apartment for buying. 
If you start doing your research you will need to look at a lot of thinks and critereas I will give you few tips.  

if you looking to invest you need to look:

1.  at the value of the area you want to buy
I will give you example about Manhattan because I am more familiar with it. 

There is different areas and value on the property. All buildings usually increasing their value in period of time. If we take example one year most of the buildings increase for 2-3%  it is mean that if you buying for 1 million next year you can sell for 1,020.000. Some area developing very quick they have new constructions buildings, there is new schools opening and food places it is means that this area can go up in value for 4-5% in year. Which mean to you after 1 year you can sell for 1,040.000-1,050.000 .

I know that a lot of new developing in downtown Brooklyn, Astoria, Greenpoint, Williamsburg, long island city. 

2. If it is investment you will collect rent. So you need to know what prices on the rent of this apartments can be. If you buy for cash mean that everything will be to you packet. If you buying with mortgage you  need to see what your expenses can be every month on that apartment and what will be left over. 

Good luck in your search. 
0 votes Thank Flag Link Sat Oct 1, 2011
Hi Bryan,
It pays to do some research and I hope this information helps. If you follow these links you will find the current rental market reports for Manhattan and Brooklyn:
http://www.mns.com/manhattan_rental_market_report
http://www.mns.com/brooklyn_rental_market_report
When you visit these pages you will see a section marked 'Resources' at the top of the page. You will find a number of other reports there including a new developments report which may hep if this is the direction you are considering. In my own experience
I recently worked on a purchase in Williamsburg for $460k which we then rented for $2800/month which is close to 7%, covering both the mortgage and the common charges. Taxes there where negligible due to a 25 year tax abatement. Due to it's proximity to the city it is a very rentable neighbourhood, and there are others in Brooklyn offering similar returns.
I hope this information will prove useful to you in you search.
Many thanks,
Rob
0 votes Thank Flag Link Sat Oct 1, 2011
Good Morning Bryan,
Looking inot a Neighborhood is great. However, there is a lot more to an investment than a neighborhood!
New York City real estate is totatlly different than NJ across from Manhattan. Take a good look at the difference in taxes. The financilas of a building can make a difference and your financial background should not be overlooked.
Is the 1/2 million All cash? and what do you do for a living and how long?
Regards
fern Hamberger
0 votes Thank Flag Link Sat Oct 1, 2011
Dear Bryan,
I am living Brooklyn,NY more than about 20 years I like it here.Please visit my site http://www.brooklynrealestatenyc.com click neighborhood you can red about Brooklyn and neighborhoods of Brooklyn. On neighborhood page under further reading click homefacts you can learn about any neighborhood of USA.Thank you good luck.
0 votes Thank Flag Link Sat Oct 1, 2011
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