Your large studio in East Harlem was an investment. Your investment is an asset. The decision to sell or rent your asset is a personal financial and lifestyle decision. It should be based on your current life conditions rather than market conditions.
Fortunately in Manhattan real estate is a great long term investment and asset. Over the long term both the value of your apartment and rent will increase. In the short term real estate can be volatile.
Currently the market is good for both selling and renting. Inventory is low. Depending how long ago you bought you should be able to sell at a profit or collect rent that will cover your cost and expenses and bring income.
Do you need the money now? If you sell you can "take the money and run" While a big responsibility comes with being an owner/landlord If you keep the studio it can be an income producing asset that should continue to grow. I'm assuming it is a condo. If it's a coop, in my opinion it is better to sell now because even if they allow subletting they have total control "board approval" over everything and may even force you to sell after they have allowed you to rent it at a future date that may not be the best time for you.
Feel free to contact me to discuss your options. What ever you decide, I would be happy to help you either sell it or rent it.
Lic. Assoc. RE Broker
The Corcoran Group
Just curious...what did you decide to do?
A lot depends on your building, as others have said, and also the value and appeal of your immediate neighborhood. East Harlem is a big place (I live here) and some areas have appreciated more than others. Which means that some parts have probably leveled out for now, and some still have room for appreciation over the next few years.
In general, right this minute is a great time to list a Manhattan apartment, because there are lots of first-time buyers out there and they're looking for value and convenience. Not to mention that potential buyers are carefully watching what's happening with interest rates (hint: they're not going down). But there are very few apartments for them to buy, and the well-priced ones get snapped up FAST.
I know the area pretty intimately and can run a report for you to see what the numbers tell us - not just asking prices, but actual sale prices.
Send me a message if you'd like to talk further!
Douglas Elliman Real Estate
William J. McBurney, Jr.
1st Prize REBNY Deal of the Year 2012
[Residential Rental category]
Douglas Elliman Real Estate
It mostly depends on your personal situation but as pointed below it also depends on wether you own a co-op or a condo and can rent it.
Either way, if you want to speak about it you can contact me. I would be happy to help you.
Nicolas Puygrenier Ç€ Licensed Real Estate Broker
Mona Lisa Real Estate Group LLC
419 Lafayette Street, New York, NY 10003
Telephone: 917 499 1917
You are right that prices have come up since you asked for opinions about your studio on Trulia in December 2010. Prices are up on sales right now because so many people sold in the last part of 2012 out of fear of higher taxes in 2013, causing a temporary low inventory of property on the market and a few bidding wars. This will probably not hold up through the current year.
Prices are up on rentals because so many people who sold in the past few years did not buy again (to downsize or upsize) but decided to rent instead "for awhile" out of a need to stay mobile in the employment environment or out of fear that prices would drop again before the recession is over for good, causing an unusual demand for rentals that enables landlords to raise rents 5-10% at the start of new leases. This situation is not permanent either.
You can get a relatively good price on either a sale or a rental right now so which is better for you depends upon your immediate, and your longer term, personal plans.
Do you want to sell your studio and use the money to buy another apartment or do you want to rent out your studio and go live somewhere else in a rental or another apartment you purchase with other funds you have? If you need a new loan, be warned that banks continue to be very, very demanding in their requirements and it is not easy to get financing right now -- and no sign of it easing up soon.
Also consider that beginning in three to five years, there may be a radical change in the U.S. economy when Bernanke stops holding interest rates low and the banks begin to spend (loan out) the cash they are sitting on; that change is going to be rapid inflation with prices going sky high and the value of the dollar falling. In that scenario, people with a lot of cash are in a good position to finally earn higher interest rates. But it very hard for most people to even imagine that scenario.
As an agent, I can help you get the highest price for your studio, and the lowest price for your next purchase or your new rental for yourself; or if you decide the other way, I can help you get the highest rent from your new tenant in your studio and the best arrangement for your new living quarters whatever you choose them to be (ownership or rental).
Probably, the best way to go is: What will net you the most cash at the end of the next two years.
Also if you are not in the rush to sell, it is expected that the prices would go further up after the 2d ave subway line is finished.
What you do with the property depends on your financial status and goals. If you are in need of the funds, you should seriously consider listing your apartment for sale. However, if the rental income is higher than your monthly expenses (positive cash flow or passive income) and you are not in need of the funds, it is a way to grow your wealth through equity buidup as well as income.
Hope the answer was not too confusing. If you wish to discuss in person - feel free to give me a call.