Is 2021 a Good Time to Invest in NYC Real Estate?
We’ll discuss this topic in the following video.
I’m Nick at Hauseit, based here in New York City.
Check out our website hauseit.com to learn how to save money and reduce your closing
costs when buying and selling real estate in New York City.
So let’s get started!
There are always opportunities for acquiring long-term value in the NYC real estate market,
regardless of general market conditions.
Whether or not it’s a good time to invest money in NYC real estate primarily depends
on the pricing and other characteristics of the specific property you’re considering.
This is much more important than general market conditions, if we’re being honest.
But of course, it’s much easier to find good investment opportunities in a buyer’s
market.
And as we’re filming this video, much (but not all) of the real estate market in NYC
is in fact a buyer’s market.
We’re filming this video roughly 1 year after the pandemic first arrived in New York
City.
And even though COVID-19 hit the real estate market hard and prices have fallen, there
are still loads of overpriced and undesirable properties for sale.
That being said, COVID-19 induced price declines have increased the number of good investment
opportunities in the NYC market overall.
Moreover, falling interest rates have improved the ‘economics’ of purchasing real estate
in general.
In short, there are definitely more appealing investment opportunities right now in the
NYC real estate market as a result of COVID-19.
However, please be vigilant and ensure that you’re getting the best possible deal and
buying a fundamentally desirable property.
This means making sure the property you’re considering has a good location, layout, views
and light, etc.
Nobody wanted to buy a dark apartment with a weird layout before COVID, and people especially
don’t want to pay for that sort of thing today.
Similarly, apartments with good views and high ceilings are almost as easy to sell now
as they were before COVID.
If you’re buying an apartment, getting a good deal also means making sure that the
condo or co-op building has good financials and the monthly maintenance or common charges
are reasonable.
Nobody will want to buy your apartment in the future if the monthly carrying costs are
egregious and significantly higher than what other buildings in the neighborhood are charging.
Getting a good deal also means that you’re not significantly overpaying relative to recently
sold comps.
With that said, it’s perfectly normal and expected for prices to start going back up
in NYC.
In many neighborhoods and for many price points, they already have.
So the simple fact that you’re paying a bit more than the buyer from two months ago
isn’t an immediate red flag.
All we’re saying is to be thoughtful and prudent with the offers and counteroffers
you’re making.
For example, it’s fine to pay a few percent more than the person who bought an apartment
during the darkest hours of COVID.
But if you’re paying 25% more than the condo which sold last month, that might be a bit
aspirational.
It’s also important to minimize your buyer closing costs to achieve the highest possible
return on your NYC real estate investment.
One way to do this is by requesting a Buyer Closing Credit through Hauseit.
Check out our website, hauseit.com, to learn more.
You can also click the link above.
Finally, before we let you go, we want to emphasize one other interpretation of what
it means to get a good deal.
Obviously, getting a good deal means paying a relatively attractive price for a property.
But another interpretation of getting a good deal means you’re buying a fundamentally
‘good asset’ which will be easy to sell in the future.
A $20 million apartment is not easy to sell.
Nor is a dark apartment with one window that faces trash cans.
So getting a good deal means that you’re acquiring a desirable apartment which you
feel will be relatively easy to sell in the future, should you wish to do so.
One easy way to tell if you’re buying a desirable property is by observing how much
interest there is in the apartment.
A bidding war or multiple offers is a clear indication that the property has good bones.
Low monthlies, a great location, exposed brick, high ceilings, lots of windows, outdoor space...there
are many things which could make a property desirable and translate into lots of interest.
So provided you don’t overpay, buying an apartment which had a lot of other interest
from fellow buyers is a really good thing.
So there you have it!
We hope you enjoyed this video, and if you did, please like, subscribe and leave us a
comment.
We’d greatly appreciate it.
And if you’re looking to buy or sell, check out hauseit.com to learn how to save money.
I’m Nick at Hauseit, and we’ll seen you on the next video!