No matter what type of television shows or films you like, you probably watch a few things that mention the real estate market in New York City. You might find yourself wondering how the gang on Friends afforded such large apartments, or you might remember the way Carrie from Sex and the City almost lost her home when her building went co-op. The real estate market in the city is so hot that people pay $1,000 or more each month just for a single room or a tiny studio. Learning more about that market lets you know what to expect when investing in real estate or looking for your next home.
Location is Important
One thing you need to keep in mind is that location is always important. New York City consists of several boroughs, including Brooklyn and Queens. Each of those boroughs has a different atmosphere. Williamsburg is popular with hipsters and young people, while Brooklyn is more popular among young families and with couples just starting out. If you want to live in Manhattan, you can expect to pay twice as much or more as what you would pay in one of the boroughs because of the proximity of the city to major attractions and activities.
Size Matters Less
When looking for apartments in the NYC area, size matters less than if you searched for homes in other parts of the world. Tiny apartments are so common that many people find themselves surprised when they see two bedroom apartments or larger apartments in the city. Studio apartments with a tiny kitchenette and a small bathroom can cost more in a single month than you might pay when renting a home for several months in another city. Real estate investors often think about the location of the building and the amenities available on-site before making an investment.
If you invest in a property, make sure that the building offers some amenities that appeal to renters. NYC offers plenty of things to see and do, and many renters send out their laundry or visit small laundromats to clean their clothes. You can appeal to busy professionals when your building has an on-site laundry room or laundry services. Buildings that have bodegas or convenience stores on the bottom floor, provide free wireless Internet services or have fire escapes and/or roof top entertaining spaces are popular with renters too.
Many Renters Use Brokers
Louis Ceruzzi and other real estate investors and professionals working in the NYC area might find that renters often turn to brokers for help finding apartments. Brokers charge a set fee and agree to find potential homes for tenants. A broker might spend hours looking at places for rent, and it can take months before a broker finds a suitable and affordable home for a tenant. Investors can work with brokers to show them the buildings they own and the amenities they offer to find qualified tenants quickly.
The NYC real estate market is one of the few markets in the country that always remains hot. With thousands of people moving to the area every year for work and school, it's important that real estate investors focus more on amenities and location than the size of the buildings they invest in or buy.