Latest posts by Gea Elika (see all)
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Whenever anyone plans a move to New York City, they tend to be in for some reality checks. While making the move tends to be inspiring, searching for the perfect property to live tends to cause some sticker shock, to say the least, whether you are moving in from home or abroad. To help you stay strong and bear the brunt of the disappointment before you even start looking for a property, here are a few tips to help you readjust your expectations.
Make a Wish List-And Be Prepared to Modify It
As you prepare for your meeting with a real estate buyer’s broker like the experts at Elika Real Estate, make a wish list of everything you desire in a property. Be forewarned, however, that many of your desires may not be met. If you are serious about buying property in NYC, know that you will likely have to compromise on your vision.
For example, while many local and foreign buyers are used to having lots of space and some type of yard or garden, these luxuries are rare in New York. You will most likely be surprised to know that even exclusive buildings have smaller spaces and fewer outdoor options than many other cities in the world.
Knowing what you want can help your realtor narrow down your list and give you realistic options that fit your broader needs—and your budget. If you have always dreamed of having a swimming pool in your building, know that it probably won’t happen because of all the luxury properties in New York, only about a dozen feature swimming pools. Being prepared to compromise on unnecessary items like swimming pools will help make your transition to the Big Apple easier.
Also be prepared to compromise on things like size, ceiling height, and even the building itself. New York isn’t the most expensive city in the world, but it is up there. The price per square foot is much higher than in other places in the country and even the world, so your lifestyle may be slightly altered from the one you are used to. In return for your potentially smaller space, you have the city of New York at your doorstep.
New York real estate is actually good for investors because it is a liquid market. And right now, interest rates are at an all-time low, making it the perfect time to invest. While there is a stereotype that foreign investors pay in all-cash, in reality, many foreign investors also take advantage of fixed-rate financing. This way, they can lock in the lower rate over the life of the mortgage, something that is unavailable in many other countries.
If a property doesn’t feel right to you, go ahead and sleep on it. Don’t feel rushed if you are still uncertain.
Remember too, that your home is also an investment. The longer you own the property, the better. If you sell too quickly or at the wrong time, you may actually lose money by getting stuck in the downward trend. And with today’s economy, you have to be even more patient.
For buyers planning to own the home for five years, make it closer to seven in the current market. Your home should match your demands and be sustainable through the trends of the market or a rental yield.
This means that if you can hold on to a property, you can rent it when you move out, to maintain a profit.
Finding a perfect property isn’t easy, but compromise is the key to getting as close as possible.