David Braddon, Home Buyer in New York, NY

Property for investment

Asked by David Braddon, New York, NY Mon Jul 26, 2010

Hi, I'm looking to buy a property on manhattan as an investment but I live in the UK and I am slightly unsure as to what the most in demand type of property is whether it is smaller and aimed at students or whether it is slightly larger and as at working couples. If you could give me any advice I would be very grateful.

Kind Regards

David Braddon (davidbraddon@hotmail.co.uk)

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Answers

9
Maikov Moffatt’s answer
I would say, to buy a investment home in Brooklyn, New York. Hold on, you probably saying Brooklyn! When I say Brooklyn, am talking about the areas around the Brooklyn Bridge, East River area, looking over the New York City Skyline. Manhattan is very expensive, but the area am talking about, is slightly lower than Manhattan. Use this website for your research on home in Manhattan and Brooklyn to see the comparsion in prices. Any questions, feel free and ask me.
0 votes Thank Flag Link Sat Aug 7, 2010
David
First of all you need to look at your financials, if you are a foreign national then you need to buy 100% in cash. If you're a 1st time investor I would recommend you to be little careful. You might even just wanted to buy a studio and see how it goes. All I see as a Licensed Realtor in NYC, the rental market little better than last year which means the rent is little bit higher and not many vacancies out there compare to this time last year.
As far as the building type, your only choice would be a condo/condop not a co op because condo/condop is easier to rent and investor friendly compare to co op where you will face lots of different issues time to time.
If you wish I can help you to find something suitable and even rent and manage your unit, just to let you know.
Best of luck otherwise.

Cheers :)
Anu
0 votes Thank Flag Link Wed Aug 4, 2010
David,
It all depends upon your price range and the neighborhood. For sure, as mentioned below, if your goal is for investment, you do need to buy a condo as co-ops are expected to be owner-occupied. If you are able to manage a 1-BR rather than a studio, it would fit both categories of renter that you describe. If you are looking to rent to students, near NYU or near Columbia University are your best bet. You will always have demand there. Again, budget would dictate where - the Village is pricier than uptown near Columbia.

Best,
Jenet Levy
Halstead Property, LLC
jlevy@halstead.com
212 381-4268
http://jenetlevy.halstead.com
0 votes Thank Flag Link Sat Jul 31, 2010
Hey David,

I would definitely agree with Anna and Klara to lean towards a condo rather than a coop if you want to be able to rent the apartment - coops have strict rules about renting and most will only let you rent one year at a time and then you have to occupy the appartment for at least a year.

A multi family in Harlem sounds good but then you have the responsibility of upkeeping the property which is impossible remotely so then you have to hire someone to do that which can be expensive and a hassle.

I moved to New York from London years ago and did very well on my city apartment investment - I lived there for 10 years and then rented it for about six before finally selling it as I moved upstate. The exchange rate isn't really that much in your favour right now but if you find a good one or two bedroom condo with manageable monthly fees and taxes you should do fine over time.

Good luck and let me know if you want me to hook you up with a great agent in the city to work on your behalf. The way it works here is that they buyers agent fees are all bundled into the commission that the seller pays on the sale of the property, so you can work with a professional on top of their game at no cost to you. We have a network established of pre screened agents that we match to people looking to buy.

Cheers :)
0 votes Thank Flag Link Mon Jul 26, 2010
David,

The market in NY is similar to the market in London. There's demand across the board. Rather than buying an apartment which can get quite complicated to rent out consider buying a 4-6 family unit in Harlem for the same price as a one bedroom in midtown. This spreads your rental risk across multiple units so there's always a revenue stream.

Sami Saghie
sami@rri-llc.com
917-767-7248

Ross Realty International
http://www.rossrealtyinternational.com
0 votes Thank Flag Link Mon Jul 26, 2010
As to the type of property to purchase--much will depend on your budget/finances, however, you may wish to consider purchasing a condo, as some co-ops will not allow rentals.
0 votes Thank Flag Link Mon Jul 26, 2010
There are many facets to your question David, as i'm sure you know Manhattan has many submarkets. But in general, smaller apartments have a lower vacancy rate and a higher rental price per square foot. It seems as if there is a never ending supply of young single people looking for their first apartment.

Make sure you work with a knowledgeble agent with a good reputation, and consider hiring your own appraiser, don't rely upon the the bank's appraiser.

A good appraiser with knowledge of Manhattan, can advise you for a fee, based on your needs, what the best submarket is, what size unit has the lowest vacancy rate and highest rental price per square foot.

Jim Lanfranchi,
Archer Meade Appraisals
0 votes Thank Flag Link Mon Jul 26, 2010
Hi David:

Good questions, pick a few top schools, and buy a home / condo / multi-unit.

You cant go wrong, unless you buy it sight unseen or over pay.

A student will care for a 1 bed / 1 bath. A single person a studio, a working couple, a min. of 2 beds / 1 baths

Good luck.

Perry
Web Reference: http://www.ruthandperry.com
0 votes Thank Flag Link Mon Jul 26, 2010
Are you planning on renting the property out? If so try to get a 2 bedroom verses a 1 bedroom if you can afford it. You will want torestrict your purchase to condominiums as coops are not easy to buy for investment. The property could then be rented to a working couple or to students who would share the rent.
If you would like some help finding the right property I would be happy to help

Klara Madlin
Klara Madlin Real Estate
212 580 3180 x 200
klaramadlin@yahoo.com
Web Reference: http://www.klaramadlin.com
0 votes Thank Flag Link Mon Jul 26, 2010
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