NYC Real Estate Investment

Luxury NYC Real Estate Investment Advisors

Maximize Real Estate Investment Returns. Minimize Risk. Buy with Confidence, Since 2001.

ELIKA Real Estate is your trusted partner in building a diverse, income-generating investment portfolio. As New York City’s premier buyer’s agent, we specialize in helping investors navigate the market with expert guidance and undivided loyalty. We focus on residential real estate investments, targeting robust rental markets within NYC with the potential for strong performance and long-term appreciation.

Our priority is to identify the best properties and guide you through the purchasing process, securing the most advantageous deals while minimizing risk. With an ELIKA buyer’s broker by your side, you can expect exceptional service and expert advice. While market fluctuations are inevitable, our comprehensive services are designed to help you achieve your investment objectives and manage risks effectively.

Schedule a free consultation today! Let’s discuss your investment goals and identify your ideal NYC property.

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ELIKA provides real estate investors with an end-to-end investment solution, from buyer’s representation to property management when needed. We help you through the buying process with 20 years of service excellence and resources. Our focus is on assisting clients in identifying and acquiring quality properties built to outperform. Our agents guide you through each property type, highlighting each building’s pros and cons and broader neighborhood. Once found, we’ll estimate the fair market value and strategize on an offer to negotiate, handle negotiations, take care of all the paperwork, and conduct the final walk-through to closing.

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Buying Investment Property in NYC

Many people have dreamed of owning real estate investments in New York City. Unfortunately, many investors stop there and don’t consider it a real possibility, misbelieving it is only an avenue for the super-rich. It’s time we eradicated that myth. Investors come in all shapes and sizes, and, believe it or not, some properties are found at reasonable prices. While owning your own home has many benefits, there is a way to invest in real estate to produce a steady income flow.

If that becomes a reality, be prepared for much research and planning. To help you get started, here’s a complete list of all the considerations you need to make before investing in New York real estate.

You may also wonder about the best ownership structure to purchase a real estate investment. Many attorneys and tax accountants agree that buying under an LLC is the best fit for most investors. You can learn more about forming an LLC by reading this article.

Not all properties are worth buying.

Supply and demand aren’t inconsistent across the city because investment potential varies from neighborhood to neighborhood. Finding the right property and the best terms means knowing the local market, what changes may be coming, and the buying process.

Reasons for Investing in New York City Real Estate

New York City is well-known and perhaps the most important city in the USA. When people talk about America first, they think of New York as the financial capital. L.A. is the U.S. entertainment capital. Thus, investing in New York City, which is diverse in industry and population with a rich history, provides the perfect location and backdrop for housing. There is a magnet for economic and job growth from leading educational faculties to many companies headquartered.

• Well located globally
• Diversified industries
• U.S. dollar
• Political stability
• Safe Jurisdiction – The Swiss Bank of Real Estate
• Foreign Buyer friendly
• Freehold
• Transparent ownership rights
• Supply and Demand
• Portfolio diversification
• Resilient Market
• Return on Investment – a Proven track record of outperformance

Considerations Before Buying a Real Estate Investment

Buying a real estate investment is a big decision. You’ll want to know all the significant considerations you must make before starting. Real estate investing can be risky at first, so having a trusted buyer’s agent by your side is a great help. Our agents have the experience, knowledge, and training to make our clients easy. However, we can only give the right advice when we know what our client wants to accomplish. We work closely with you to understand your needs and find a suitable property investment for you.

Additionally, we work with each of our clients on an individual basis. By listening to your needs and working closely with you from the beginning, you can be sure of receiving nothing but the best advice.

There is a high source of demand at present, and the economy is performing well. According to the U.S. Census Bureau’s American Community Survey, approximately 45% of New York City Housing comprises rental units. The highest among cities in the United States. For instance, Los Angeles has 39% of its housing devoted to rentals, while San Francisco’s was 37%. Other sources estimate that about 67% of Manhattan’s housing stock is rentals. Source: National Multifamily Housing Council.

Why it’s Not About Yield

Imagine this; it’s baseball season, so you sit to watch your favorite team. The star player is at the plate, and as he gets ready to hit, you see he’s holding a cricket bat. Of course, this scenario is ridiculous, but that’s how experienced investors see many new arrivals in the NYC real estate investment game. They’re playing the right game but with the wrong tool. Here, the lousy strategy is focusing too much on yield. Instead, capital appreciation is the main game in this city.

Historical Yield

The rental yield, or cap rate, is your net cash flow divided by your purchase price. As a beginner investor, it’s natural to think this matters most. In this city, it has historically been 3%-4%. Much lower than yields across the country. According to one study, multi-family properties in Atlanta and Chicago are about 4.75% at the low end and over 6% in Indianapolis. Many cities offer a higher yield, making rents an attractive, steady income source. However, despite the high rents commanded in New York City, this is not the primary factor generating returns and naturally leads to the question: why invest in New York City?

As you’ve probably guessed, there’s a missing piece to the return equation. After all, an investment in the ten-year Treasury note currently has a 3% yield. Since the United States government’s full faith and credit are backed, the principal’s repayment is risk-free. Unlike real estate, it’s a passive investment that doesn’t involve inconvenient calls for emergency repairs and unruly tenants. Since there is more risk, there must be a higher potential return.

Capital Appreciation

The answer is that real estate investors have generated much of their gains from rising prices. For instance, real estate appraisal and consulting firm Miller Samuel examined Manhattan prices for 100 years, from the 1910s through the 2010s. In the 1970s, the sales price was $45 per square foot for luxury properties, rising to $1,200 in the 2000s. In a narrower period, covering 2004 to 2013, Manhattan’s median sales price rose from about $606,000 to $855,000. A 141% rise or a 3.5% compounded annual growth rate. There are a couple of things to note here. The 2004-2013 period includes part of the build-up during the bubble and the sharp contraction during the recession. But over a decade, these large swings balanced to a 3.5% annual gain.

Return on Real Estate Investment

Measuring profitability is essential. However, in isolation, it means very little. Rental income minus monthly expenses such as maintenance, repairs, financing costs, and net income. It would help if you compared it to the amount invested. Other investments should examine the percentage. For example, if you have a 2% return and the ten-year Treasury bond yields 2.8%, you would be better off with the latter. Incredibly faithful since the risk of losing your principal is extraordinarily small (most consider it a risk-free investment).

There are a couple of other considerations. Although the purchase price is typically determined based on square feet, renters usually look at the number of bedrooms.

Also, it is crucial to analyze sales and rental data. The two do not always move in lockstep, and there have been instances where sales prices have risen faster than rents. Therefore, a smaller unit may command a higher rent while purchasing less if extra bedrooms are added. In real estate, leverage, or borrowed funds, is often used. Potentially increases returns since you can buy a property with a down payment and pay the balance over time. Of course, it also increases risk and magnifies losses in a downturn.