How to Determine a good Manhattan condo investment
We talked with a buyer from Singapore last Friday who is looking to purchase some condo units here in Manhattan because they believes now is a good time to invest in the US Real Estate but do not know where to start and we were happy to educate them on the overall market place and the current condition. We are seeing many good condo investment currently on the market for investors, and we are seeing there can be some price negotiation if the property has been on the market for sometime, the sellers are now willing to look at different offers.
We discussed buyer's overall goals and as well as their preferred method in purchasing the units. These are a group of savvy buyers looking to buy several units when they visit in a month. When we work with oversea buyers, we will send them a list of possibilities and talk on the phone several times before their trip so when they arrive in NY, we will visit the few condos we have work together to narrow down and focus on.
Manhattan condo Location: Convenient location for public transportation, if this is going to be a rental property, then we have to remember that majority of New Yorkers rely on public transportation such as subway, trains and buses. If the building is near a subway station, the condo is much easier to rent out or resell in the future. No one complains about having too many transportation options, but they will for sure complain about having to walk 15 minutes just to get to a train station.
Manhattan condo Carrying charge: If this is an all cash with no financing purchase, after the condo closes, the new owner (or landlord) is responsible to pay monthly condo common charge and Real Estate taxes. So the lower combined carrying charge (the common charge and Real Estate taxes), the more net profit there is on this condo investment. Every building is different when it comes to the common charges and real estate taxes so determining the value proposition each building has is a necessary aspect of the purchase.
Manhattan condo Sale price: The sales price of the condo is relevant to what has been sold in the building before, for example, if in the same building, condition, exposure, square footage size and layout is the same sold for $980,000 last week, and you can buy the downstairs unit with identical condition and layout for $970,000 because the seller is very motivated, then you may be buying a deal, relative to units in the building. When it comes to sales price comparison of ‘a deal’, it is always ideal to compare within the same building, same neighborhood, same period of time (month/week), condition and exposure of the condo to determine if it is a good deal or not.
Whenever we speak with our Manhattan Condo buyers, and determining a good investment or not, ultimately we are talking about a property that is going to hold it’s value and have the best opportunity to maximize appreciation in the future. Every person comes with their own thoughts on what makes a good investment, but as an seasoned real estate agent in the Manhattan condominium market our experience will help you make a more well informed buying decision.
Call us today at (917)837-8869 so and we can discuss your condo investment thoughts in details.