Did you know, TODAY, you can buy a 1BR/1BATH in the Upper East Side of Manhattan for under $299K! If you have the down payment and even factor in a very high maintenance cost of over $1100 monthly, you are ONLY PAYING $2,291 a month!!! Where can you beat that as a renter?
Unbelievable right, NOPE, there are a lot of these deals out here, but why have more renters like you not caught onto the cost savings this could offer them? Buying in New York City, especially into Cooperatives, has historically received an unwarranted bad reputation. Unless you plan on buying into the premium properties on Park Avenue or 5th Avenue, the board is rarely a major concern! So, what is stopping you now? Lending is at an all-time high, interest rates have been quotes as low as 3.75% and best of all, PRICES are LOW and priced to sell.
Has this peaked your interest? You will need to consider the following factors when preparing yourself to move from renting to purchasing in our great city. Last year was a rollercoaster ride for New York’s real estate market, the Financial Crisis greatly impacted the luxury housing markets (properties priced above $3M), resulting in low transaction volumes. But, this year, the future of the real estate market is looking up, especially for the buyers.
Why is that so?
- With New York City rents not dropping anytime soon, buying offers significantly lower carrying costs than rents for similar home sizes in the same neighborhood. This is especially evident in Manhattan, which hit an all-time high of $3,600/month in its median rent, according to Zillow. Thus, with rents being so expensive, it would be a lower cost on the tenant if they were to simply pay a mortgage on their own property instead, adding an asset to their balance sheet. Furthermore, due to The Housing Stability and Tenant Protection Act that passed in June 2019 and the looming changes to brokerage commission payment requirements, there was a sharp rise in rents across all neighborhoods in NYC. This is considered collateral damage since landlords will do what they can to lower their costs and you as a renter, are left with the bill.
- For buyers looking to get financing, the cost of capital is extremely low. The fact that mortgage rates for qualified applicants have fallen to 3%, which makes the cost of capital very enticing. Since 2019, to improve the economy, the Federal Reserve has continued to reduce the interest rates. Thus, it resulted in mortgage rates remaining at historic lows in the 3-plus percent range. Another benefit is due to the low mortgage rates, all cash-luxury buyers have decreased since it was more beneficial to finance. This means you won’t suffer any disadvantages when it comes to negotiating when you utilize a mortgage to buy a property. With prices also trending down, are you still wondering why you are writing that rent check today?
- Buying a property in New York City is a profitable real estate investment. Buy an investment property, become the landlord so you too can benefit off the competitive lease rates in both residential and commercial markets. If you look at the market cycles over the last 20 to 50 years, there is a consistent and eventual rebound that always benefits smart and patient investors. Thus, it can be said, there will be no lacking buyers when it comes to properties in New York. It is a long-term investment that will yield high results. When you compare statistics, home values rise faster than rent. As a savvy investor, hold through market dips so you can sell your property at a huge profit in the next cycle.
- Lastly, as a homeowner, you’ll have various tax benefits. Property taxes, maintenance or common costs and mortgage interests are all relatively deductible with the guidance of a qualified accountant. This enables buyers to save from their investment. Building equity in your home also means that you are creating value that you can later decide to leverage. For example, owning a condominium may allow you to depreciate parts of costs for those rental units. If you intend on staying in an area, buying property is more cost-effective than renting
READY TO BUY?
Work with an experienced Real Estate Agent and Get the Best Deal Possible!
Before you purchase that ideal property or apply for a mortgage pre-approval, we recommend you first enlist the help of a qualified, experienced and professional real estate agent. Here are some of the benefits of hiring the right real estate agent provides:
- They have the local property knowledge and comparative data to ensure you don not over pay.
- They can match you list of needs to the ideal properties, units and neighborhoods you may have not previously considered.
- They may have access to units not currently listed on the open market.
- They will guide you throughout the transactional process.
- They will negotiate favorable terms, price and other contingencies you may not be aware of to maximize your deal.
Those mentioned are just a few benefits of getting the help of a real estate agent. If you are looking to purchase a property in New York City, we at Virtuoso Realty Group will fight to earn you the most favorable deals possible. We offer customized real estate sales and leasing services that are targeted to giving you the best real estate solutions. Our goal is to navigate you to your ideal property. Reach out to us today at 212-374-1425!