To Invest Or not Invest humm?
To invest or not to invest in an apartment to rent out; that is the question?
There are pros and cons in every situation that will determine whether a course of action will deliver a net positive or net negative result. Whenever we make any decision, the factors we weigh will tell us the direction we should go. So why should we invest in a NYC rental property?
Just like blood circulates while we live, money has to circulate to grow; think of it as the life blood of finance. If you are looking to minimize risk then understand that people are not going to stop coming to NY and when they come, they don't bring apartments.
But what they do bring is a potential investment stream that you can benefit from. To elaborate, there is an old economic principle about supply and demand; since most NY residents dont own, the supply of owners is less so the demand for rent will be higher. If most residents owned then the market would be different for the potential investor.
The space the city allots precludes that realty so the New York real estate market will maintain its attractiveness.
This industry isn't that difficult to get into. Its easy to look up vacancy rates (you want to know what is available and for how long), access to transportation (people want to easily get to and from home), nearby stores & services (convenience is always at a premium) & demographics (birds of a feather...). Put those together and you have a starting point.
As promised, lets look at some of the potential drawbacks. Some people just don't want the responsibility of being a landlord; I get it.
But if you have, or have had, a landlord then the general maintenance required won't be difficult to take care of. Reach out to those in the know for assistance. If you get to a point where you have multiple dwellings then you will have the money to hire someone to manage your properties.
That one or two places likely won't be enough for you to garner income to place you that much higher in the tax bracket so this isn't a "get rich quick" scheme.
Knowing that some places are easier to invest in is key; the more flexibility the better. That said, co-ops are less expensive monetarily but more inflexible regarding their ability to be monetized. With having to gain board approval for potential renters, or even the boards desire to minimize tenant turnover, then it may be better to just go the condo route. You want units to be investor friendly.
Tenant screening is the most important; ain't nothing going on but the rent. You want to do your best to solidify that the tenant your place will be able to stay in place for the duration of the agreement. The unemployment rate for the US is 4% & is under 5% for NYC.
The economy is not in a downturn so more people now have the ability to pay but need that conduit to those accommodations.
These are some points to better serve your decision making process. There more cons as well as many more pros but this is article not a book. To invest or not to invest is indicative of the conflict between thoughts and actions; should time be taken or an act undertaken? Eventually we have to live life and carry out activities because ultimately any investment is one in yourself.
Are you worth that risk?
There are pros and cons in every situation that will determine whether a course of action will deliver a net positive or net negative result. Whenever we make any decision, the factors we weigh will tell us the direction we should go. So why should we invest in a NYC rental property?
Just like blood circulates while we live, money has to circulate to grow; think of it as the life blood of finance. If you are looking to minimize risk then understand that people are not going to stop coming to NY and when they come, they don't bring apartments.
But what they do bring is a potential investment stream that you can benefit from. To elaborate, there is an old economic principle about supply and demand; since most NY residents dont own, the supply of owners is less so the demand for rent will be higher. If most residents owned then the market would be different for the potential investor.
But if you have, or have had, a landlord then the general maintenance required won't be difficult to take care of. Reach out to those in the know for assistance. If you get to a point where you have multiple dwellings then you will have the money to hire someone to manage your properties.
That one or two places likely won't be enough for you to garner income to place you that much higher in the tax bracket so this isn't a "get rich quick" scheme.
Tenant screening is the most important; ain't nothing going on but the rent. You want to do your best to solidify that the tenant your place will be able to stay in place for the duration of the agreement. The unemployment rate for the US is 4% & is under 5% for NYC.
The economy is not in a downturn so more people now have the ability to pay but need that conduit to those accommodations.
These are some points to better serve your decision making process. There more cons as well as many more pros but this is article not a book. To invest or not to invest is indicative of the conflict between thoughts and actions; should time be taken or an act undertaken? Eventually we have to live life and carry out activities because ultimately any investment is one in yourself.
Are you worth that risk?
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