Daily Mail takes a look at some of the reasons that storefronts remain empty and more and more are joining them. Part of what made Manhattan neighborhoods what they are is mom and pop. Most mom and pop are being forced out due to high rents but even recently, Petco closed a store on Manhattan’s upper west side with the reason being given that the rent was too high. This store was only open less than 2 years.
The Author- Brian Silvestry , a licensed real estate broker, has been selling residential and commercial real estate since 1999. He has sold in every Manhattan market from Battery Park City to Washington Heights.
Here are some basic steps in purchasing a Manhattan apartment for the first time.
1- Decide on a Manhattan neighborhood
2- Get a pre approval
3- Co-op or condo?
3- Find a buyer broker
Also I would add to choose your real estate attorney well. Usually your buyer broker can help you with that. A real estate attorney usually chages around $2500 or so but some that do excellent work can be found for as little as $1700 depending on the price range of the property.
Additionally, beyond getting the pre approval make sure that the bank will finance in the building that you choose. Some buildings have sponsors that still own more than 10% of the shares(co-ops) or the apartments(condos) or a higher than usual percentage of tenants. This can complicate financing and is an area very often overlooked by many real estate brokers. This as a buyer can cost you time and money and add stress. So vet the building with your lender to avoid all of that! What are your tips for a first time buyer?
by Brian Silvestry
Industry pros weigh in on several market segments and take a look ahead to 2018 in the latest edition of the Cooperator. As previous reported here, the luxury market is in a buyer’s market and less expensive properties are still holding with similar price per square foot year over year.
This is confirmed by more personal experience where some sellers can be reluctant to adjust to a changing market and instead insist on their price which holds firm the price per square foot.
by Brian Silvestry
One segment of the market that may benefit from the Tax Reform may be multi-family. According to Real estate weekly, some people may decide to rent instead of buying and rents may rise as a result. Also, foreign investors may move into more multi-family properties due to the decrease of the Corporate tax rate to 21%.
Rents have been declining for the last 2 years in the Manhattan market but if more people who can buy decide not to buy this can affect the rental market.
Also, if interest rates rise, this may be a secondary consequence of the new tax law, and they may affect the starter apartment market in Manhattan and increase the amount of renters.
by Brian Silvestry
If you are thinking of buying in Midtown, Manhattan, take a look the profile of Turtle Bay written by the NYT. One of the few areas that remains a neighborhood and still has affordable apartments relative to the surrounding neighborhoods. As Manhattan nabes expand, will this be a great investment?
If you are thinking of buying a Manhattan condo for investment with the objective to hold for rental income, here is one simple tip that is often overlooked.
In general, after paying common charges and taxes, you will gain an approximate 2% return annual. So an apartment that you acquire for $2 million will yield approximately $40,000 in net income. In some cases, you might have an even lower return.
One type of property that you might consider is an apartment with enough space to add an additional bedroom. With the right design, you can rent an additional bedroom/den for a higher income just due to the increase in bedroom count. I had one listing where they converted the dining room to a 2nd bedroom and as a result we were able to rent the apartment for $4,200 whereas similar size apartments without the conversion were renting for around $3500. This made the return on the apartment based on the current market value closer to 3%.
You will need to see if the layout will allow it. Usually a space will need to have a minimum of 750-800 sqft to accomplish this but it will also depend on the current layout. A dining room or a dining area will be an ideal area to make the additional bedroom as long as there is a window and enough space.
With more people than ever sharing apartments and families remaining in Manhattan, this a nice way to gain an additional rental income and increase your yield on the property.
Due to the robust real estate market, values have increased in the last year and as a result, New York City is raising the property taxes on all types of property. The largest increase will be weathered by Coop and condo owners who are taxed at a different rate. Continue reading New York City property owners brace for higher taxes in 2015
CurbedNY has catalogued the top 90 real estate in NYC celebrity stories for 2014.
From Robert DeNiro’s West Village Pad, to Bruce Willis’ sale in the ElDorado and many others including Meredith Vieira…. See link below.
In Sunday’s New York Times, there was an article titled “What’s next?” which talked about the trends in the NYC real estate market.
- I agree with several of the points including that in 2015:
- AirBnB will continue to be a force in the NYC area as people rent out their rooms
- Rent stabilization will be an issue heavily discussed as those laws are set to expire.
- More luxury housing will be built
- Emerging neighborhoods like the Bronx will see an influx of new residents
Continue reading Trends to watch in 2015