New York City Real Estate Investments
We help clients diversify, position, protect, and grow their New York real estate investments.
Investors seeking to purchase New York City real estate investment properties need undivided loyalty and experienced guidance; that is what we provide at Elika Real Estate. New York’s leading exclusive buyer agent means we work solely for the buyer’s interests.
Our primary focus is on residential real estate investment properties. Our goal is to help clients navigate the buying process and find the best deal with the least risk. With an Elika buyer’s agent by your side, you can be sure of receiving excellent service and expert advice.
New York has always been an attractive location, and that is not changing anytime soon. This popularity has led to a wide variety of available; new developments, resales, single and multi-family properties. For investors, New York City, a classic example of supply and demand. For those with investment capital, much can be gained. Market fluctuations may be frequent in real estate, but you can be less severe when choosing the right real estate investment property. We provide comprehensive services to make sure you meet your goal.
Not all properties are worth buying.
Supply and demand aren’t consistent across the city. That’s because investment potential varies from one neighborhood to the next. Finding the right property and best terms mean knowing the local market, what changes may be coming, as well as the buying process.
Here to Help
ELIKA provides 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 helping clients identify and acquire quality properties built to outperform. Our agents guide you through each property type, highlight 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 you through to closing.
Ready to Buy
Table of Contents
New Contracts Signed YTD / New York City
Buying an Investment Property in New York City
No doubt, many people have dreamed of owning an investment property in New York City one day. Unfortunately, many investors stop there and don’t consider it a real possibility, misbelieving that 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.
Be prepared for a lot of research and planning if that’s to become a reality. To help you get started, here’s a full list of all the considerations you need to make before investing in New York real estate.
Reasons for Investing in New York City Real Estate
Global and well-known, perhaps the most crucial 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, 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 too many companies headquartered.
- Well located globally
- Diversified industries
- U.S. dollar
- Political stability
- Safe Jurisdiction – The Swiss bank of Real Estate
- Foreign Buyer friendly
- Transparent Ownership rights
- Supply and Demand
- Portfolio diversification
- Resilient Market
- Return on Investment – a Proven track record of outperformance
Considerations Before Investing in New York City Real Estate
Buying an investment property is a big decision. As such, you’ll want to know all the significant considerations you’ll need to make before starting. Real estate investing can be a scary business at first, which is why having a trusted buyer’s agent by your side is so such a great help. Our agents have the experience, knowledge, and training to make our clients as easy as possible. However, we can only give the right advice when we know what our client wants to accomplish. That’s why we work closely with you to understand your needs and find the property investment that’s just right 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.
According to the U.S. Census Bureau’s American Community Survey, approximately 45% of New York City Housing consists of rental units. Source: National Multifamily Housing Council. 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. At present, there is a high source of demand, and the economy is performing well.
Why it’s Not About Yield
Imagine this; it’s currently baseball season, so you take a seat 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 investing game. They’re playing the right game but with the wrong tool. Here, the wrong strategy is focusing too much on yield. Instead, it’s the capital appreciation that is the main game in this city.
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 is what matters most. In this city, it has historically been 3%-4%. Much lower than yields across the country. Multi-family properties in Atlanta and Chicago are about 4.75% at the low end and over 6% in Indianapolis, according to one study. Many cities offer a higher yield, making rents an attractive source of steady income. However, despite the high rents commanded in New York City, this is not the primary factor generating returns and naturally leading 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 backed by the United States government’s full faith and credit, the principal’s repayment is considered 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.
The answer is that real estate investors have generated a large portion 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 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’s 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 out to a 3.5% annual gain.
Return on Investment
Measuring profitability is essential. However, in isolation, it means very little. Rental income, minus monthly expenses such as maintenance, repairs, and financing costs, give 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. Especially 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 lock-step, 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 purchase a property with a down payment and pay the balance over time. Of course, it also increases risk and magnifies losses in a downturn.
NYC Investment Strategies
Our investment clients prefer free-standing, architecturally exciting buildings developed by well-vetted developers and interesting, accomplished architects. We look for a uniqueness that will mature gracefully, quality of construction and finish, walkability, building services, and the lifestyle it offers potential tenants, and if we were to live there with family.
The unit mix is also a key metric we assess. Preferences can differ depending on our client’s investment profile. However, we adapt to position our clients as best as possible to accomplish each of their goals.
- Locate investment properties that will outperform the market
- Buy what a New Yorker would want to live in
- Buy and hold
- Capital Appreciation
- Desirable Architecture
- Superior Product
A particular neighborhood might be great, but then it comes down to the street and building type. We believe the best neighborhoods, streets within, and the property is where a New Yorker would want to live. Our preference is a hyper-local approach concentrating on fascinating histories and well-positioned to provide current housing demand and capture future growth.
The type of property use will have a significant impact on its investment potential. For instance, many co-op apartments restrict property owners subletting rights. Elika agents can help you understand subletting requirements and avoid those properties that don’t fit your needs. Applies to all property types. Whatever the pros or cons, you can trust us to give you an accurate, real picture of what to expect.
Specific real estate investment properties will attract stable long-term tenants. You should know how to avoid residential properties with a high turnover. Our agents can help you pinpoint those properties which are more likely to attract long-term tenants.
A property’s value is tied to NYC’s building and neighborhood to the specific unit. Neighborhood amenities, transportation, property age, and community features will affect investment potential. We’ll gather all the intel needed to make the right decision through a range of different sources.
Property costs, yield, and capital appreciation vary from street to street and from one building to the next. You’ll need a real estate buyer’s agent who can access all properties and independent market analysis when investing. Every investor wants a property in a neighborhood that is seeing high capital appreciation. Our job is to find you in that neighborhood.
Working with an Investment Advisor
Before buying an investment property, you’ll need as much information as possible about its long-term potential. Research and experience make a big difference. As such, you can significantly improve your real estate investment portfolio with strategic property acquisition. Elika Real Estate can help. Whether you already own a property or are looking to diversify, our investment experts will help you gather accurate information that you can use to make responsible decisions.
Tailored Investment Services
Our agents don’t just stop finding you the right property. We like to go the extra mile and provide a tailored service to suit each client’s individual needs.
Comprehensive Needs Analysis
To spend your time wisely, you’ll need an exclusive buyer’s agent who understands your goals. At Elika, we gather vital information from you before showing properties. Our dedicated agents will know which options will work well with your portfolio and needs. As such, by extensively analyzing your needs, we’ll never waste your valuable time with unsuitable properties.
If you want your investments to be a success, then you’ll need accurate information. Our experts work exclusively as buyer’s agents. Due to this, they understand the investment potential and know-how to see past the listing agent’s sales presentation. We always provide unbiased, accurate information about the properties that we show. That’s because we have a strong incentive to help our clients avoid lukewarm investments and find only the best.
Comparative Market Analysis
You also need to know how each property compares to the rest of New York City’s real estate investment market. We provide a comparative market analysis so that when you start the purchasing process, you’ll have confidence and complete peace of mind in your decision.
We’ll help you understand the buying process in its entirety. When you’re ready to make an offer, we’ll negotiate on your behalf. The purchase price is your Investment’s single most controllable variable. By understanding your budget and goals, our experts will help cut costs significantly. There may be a bit of back and forth in negotiations. But by having one of our agents by your side, you’ll feel much more confident as you proceed.
Buying investment properties requires the help of several professionals. Elika has access to some top attorneys, accountants, and mortgage bankers in New York as an exclusive buyer’s agency. Finding these people and knowing who to pick can be difficult if unfamiliar with the local market. We can refer you to superb companies that’ll save you money while providing top-tier services.
Investment properties take work to keep running. If you need help with the management aspect, then we can help with that also. Our management team will handle everything from finding and screening tenants to handling tenant requests to overseeing repairs or maintenance. We know that many investors can’t be on hand to handle the little details of property management. That’s why we provide management services to take care of all those details for you.
Elika Real Estate ensures a hassle-free process when investing in the largest real estate market in the world. We maintain every aspect of buying, leasing, and managing a property in New York City. As such, you can be sure of enjoying a successful and hassle-free experience. Diversifying your portfolio with New York real estate investments is a safe, smart financial move when you’re working with a qualified agency. With a unique knowledge of the New York housing market, Elika Real Estate gives you unbiased information, advice, and a wealth of resources that you can use to make an appropriate purchase.
One of our agents will be with you shortly to discuss your needs and set up a meeting to plan your investment strategy.