Home Buying in Newton>Question Details

shvasu, Home Buyer in Waltham, MA

We are looking to invest in multifamily home. Wondering why is newton better for investing in rental property.

Asked by shvasu, Waltham, MA Tue Oct 16, 2012

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Look at the demand in rentals housing. Newton is one of the highest demand because of the school system. Some other towns can have a better cap rate on paper, but if your property is vacant for a month or two, that won't be good.
Another factor is to look at the appreciation of the property value, Newton definitely has a good rate of the appreciation.

Rule of thumbs here; Capitalization Rate, Vacancy %, Debt Coverage Ratio, Cash Flow, Appreciation %
0 votes Thank Flag Link Tue Mar 12, 2013
Shvasu,

Did you ever make a decision as to moving ahead with an investment property?
0 votes Thank Flag Link Sat Nov 17, 2012
There are lots of considerations when purchasing an investment property.

Newton is very expensive and the "cap rates" or your return on investment are very low on a month to month basis. If you are looking for as much monthly income as possible, maybe Newton is not the right town for you. Though on the other side of the coin, Newton is a very desirable, stable community, that may help in retaining tenants and preserving capital outlay.

You need to consider what your goals are in purchasing an investment property and choose communities and properties that meet your goals.
0 votes Thank Flag Link Fri Nov 16, 2012
Seeking experienced realtor with strong knowledge and history of newton, Waltham, Watertown, areas for investment opportunities.

Can close quickly. Prefer easy maintenance of a condo( low fees). 2 br preferred. Open to a multi family unit. Near T and parking available a plus!
0 votes Thank Flag Link Fri Oct 26, 2012
Hi Deb, I am a Realtor in Newton Center at William Raveis Real Estate. I live in Watertown, and have sold many properties in Newton, Watertown, and Waltham. I can help you find what you are looking for. Email me and I can get started helping you to find your perfect investment property!
Flag Fri Oct 26, 2012
I have helped many investors buy multi-family properties in Newton, Brighton, Cambridge, Watertown, Boston, and other communities in the area. While each investor is different in terms of their ultimate goals and whether they intend to live in the property or just rent it - I would say your return on investment can be higher in other towns besides Newton. You have to decide whether you want to buy a home that is completely renovated, or needs a bit of cosmetic work - because that can affect your price to acquire the property, and in the end, factors into your long-term investment goal. While the rent prices are high in Newton, they are also high in other areas, and depending upon location, you can see a higher ROI if you expand your search. I have 14 years experience as a landlord in this area - so I can answer many of your questions regarding investment property.

Sincerely,

Brenda van der Merwe
Realtor
William Raveis Real Estate, Newton
0 votes Thank Flag Link Wed Oct 24, 2012
The schools add a ton of value to Newton Real Estate. There are a lot of families who want to get their kids into school but perhaps aren't in a financial position to buy a home. The same goes for towns like Belmont and Winchester. Whereas, as an example, places like Cambridge also have a strong multi family real estate market also because of schools but in that case universities ( a lot of students and professors/professionals at the universities)

Here is real estate agent level access to every multi on the market in Newton:
http://www.territory.com/search?search_string=NEWTON&min…

Territory.com
Massachusetts Premier Buyer Brokerage
Protecting the interest of home buyer's one property at a time!
Web Reference: http://territory.com/
0 votes Thank Flag Link Tue Oct 23, 2012
One Town vs Another Town answers will always be confusing - unless the one answering knows you, your goals, your budget, your taste, and your experience.
I would choose a real estate professional with experience in the local investment market where YOU want to invest, and consider their input.
You may have to be patient for the property that meets your criteria, and it may be on the market now.
Having a local pro is the best way to invest locally.
If you "don't care" where you invest, then look nationally using your criteria and make a decision based on math only.


(Please note: when you choose an answer as a Best Answer, or at least give a thumbs up, it helps those who answer questions here.)
0 votes Thank Flag Link Thu Oct 18, 2012
I agree with the other responses that you need to determine what your objectives are for investing. If you plan to live in the property, that might change what you consider "better" than looking for a pure investment opportunity. Newton has many great features including wonderful schools, easy commuting options and 13 villages offering their own unique look and feel. It is also nice to have access to many shops and restaurants without the hassle of finding parking!

Newton is often rated as one of the best places to live:
http://money.cnn.com/magazines/moneymag/best-places/2012/sna…

However, there are other great communities as well. If you would like to discuss your investment options further, please email or call me.

Sincerely,
Rachel Hillman
Broker, Realtor, ABR, Notary
0 votes Thank Flag Link Tue Oct 16, 2012
It depends on what you're looking for. Actually, the CAP rate in Newton is really not all that great, but most likely the investment is very secure. If you buy to live or to eventually live in Newton, the overall investment could be very positive because the property value in Newton has been more stable than most. We didn't change much in the housing bubble and therefore we didn't drop that much in the crash and were quick to recover regardless.

I would imagine that Cambridge had very similar characteristics. So again, the question is ... what are you looking for in an investment property? Will you be living in any part of it? Are you near by? Are you looking purely for passive income or are you looking for somewhere to store dollars?

I'd be happy to sit with you to discuss your objectives, if you'd like. Best of luck!
0 votes Thank Flag Link Tue Oct 16, 2012
What are you comparing Newton to? there are many good communities to invest in as mentioned here but what is you investing goal-s? do you have a specific cap rate / ROI in mind? long/short term? and another factor is your budget. It all really depends on what your objectives are but one thing you can do is to get a knowledgeable buyer's agent you help you with the process and their help is free. Good luck
Wen
wen@wenrealty.com
Web Reference: http://www.wenrealty.com
0 votes Thank Flag Link Tue Oct 16, 2012
Kenzo is not wrong. There are many great communities to invest in.

The best communities are always the same, Brookline, Belmont, Concord, Dover, Lexington, Newton, Needham, Wellesley and Weston. Why? Location and schools. But they are also the most expensive.

Much will depend on what your idea of a good investment is and your objectives. Are you looking for a single family, condo, multi family? Are you handy or want a turn key situation?

I am happy to go over your individual situation, make recommendations and guide you thru the process.

I have sold everything from condo's to apartment complexes, retail stores to malls.

I look forward to hearing from you.

Louis
0 votes Thank Flag Link Tue Oct 16, 2012
Louis,
What is your opinion about JP?
I currently live in Brookline, and am actively looking to buy a multi-fam in JP, would want to live in one of the units.
To my surprise, a 2 fam in JP is listed higher, and sold within a day or two. Whereas many 2 Families in Newton linger in the market for a long long time.

Looking foreward to hear back from you, as I may be interested to consider Newton at this point in time, cause do not want to compete w the buyers in JP, I love that neighborhood but don't want to be swept away by a possible hype.

Best, mondi
Flag Thu Nov 29, 2012
Shvasu,
Newton is a terrific community to own rental property because Newton appeals to such a wide demographic. Many current landlords rent to families who want to take advantage of the terrific school system we have while others are renting to a variety of young professionals (i.e. doctors, attorneys, researchers) who want to enjoy the quiet of s suburb but also have the convenience of being within a 15 commute be either train or car to downtown Boston. There are 13 villages that make of the city of Newton and each offer a plethora of different activities and features that make each unique in its own way. As of today there are 17 multi family homes for sale in Newton. Please let me know if I can show any of them to you.
Regards,
Adam Shamus
0 votes Thank Flag Link Tue Oct 16, 2012
Better than what?

Newton has proven to have a sustainable value as far as properties go and so do many other towns! Regardless of the price range you will find the inventory of multifamily homes now is low and the amount of buyers looking for them is growing as never before. I would suggest not to limit yourself to one good town, unless you have a specific reason for it, and look for where you can find the house you like. You may want to put on your radar screen also towns like Brookline, Lexington, Arlington, Belmont, Cambridge, Somerville and others.
0 votes Thank Flag Link Tue Oct 16, 2012
Many people prefer Newton for its proximity to Boston and for the ease of commuting from Newton which has access to all forms of public transportation (Commuter Rail, Green Line, and Bus) also is very accessible to Route 128 and the Turnpike.
In addition, Newton has a great school system and a low crime rate. Property in Newton has been shielded from the excessive price corrections that occured in other Towns due to its reputation as a well run City with excellent services. It is also a very attractive community. There are 13 villages in Newton, each with its own charming personality and character.
I would love to help you in your search, call me at 617-974-2568
0 votes Thank Flag Link Tue Oct 16, 2012
Please go to my website to view. There are many promotes in newton, but also the surrounding Towns such as Watertown, Waltham, etc. i how to hear back from your soon. Please also send an email with a convenient time too merry and discuss your investment options.
0 votes Thank Flag Link Tue Oct 16, 2012
Better community and schools equals better rents and more expensive property.
0 votes Thank Flag Link Tue Oct 16, 2012
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