Last updated on July 12, 2023

How to Buy an Investment Property in New York City

Investing in real estate has become a hot topic, and for those who can, investment properties are often one of the most stable and lucrative long-term investments today. The primary goals of an investment property are its income-producing potential as well as future capital return. While much media has focused on renovating and “flipping” real estate, the most stable investments are those kept over a period of time, offering passive income with a high degree of appreciation potential.

However, buying investment property in New York can be complex, and investors should be knowledgeable of what it entails and the potential pitfalls that they may encounter. One way of doing this is to seek out the advice and guidance of a New York City real estate attorney and real estate agent who are well-versed and experienced in investment property purchases. At Sishodia PLLC, our attorneys can assist you throughout the entire process, from conducting due diligence and negotiating contracts to handling any legal issues that may arise. Contact us today at (833) 616-4646 to schedule a consultation and let us help you secure passive income through real estate in New York.

New York City real estate attorney

New York City is Still One of the Best Cities For Real Estate Investment

As one of the most consistent investment locations in the United States for appreciation, New York City is one of the best places to own investment property for generating rental income. In most cases, all an investor needs to have in their portfolio can be a couple of New York City apartments to see an appreciable cap rate. But it is important to make the right property and neighborhood choices and do the research before making any important investment purchases.

As a huge financial and business hub, Manhattan and the surrounding areas may not afford the best investment deals. The market in Manhattan is consistently high-priced and in great demand, and sellers are not nearly as motivated to work with a buyer as they may be in other areas because they simply don’t need to be.

Up and Coming Neighborhoods and Boroughs

But there are many up-and-coming areas around the city that can be potentially suitable long-term investments for individuals, providing they are willing to make some repairs and renovations and have a little bit of patience. Looking at areas just outside of already well-established neighborhoods may still offer more reasonable pricing while piggybacking on their surrounding neighborhood’s popularity.

While the main goal for real estate investment is to buy low and sell high, there are some boroughs and neighborhoods that have greater long-term potential for the future. This results in less risk and downside volatility should that happen in the future and equate to a more optimal potential return on investment.

New York City REITs

Investors, both local and global, can participate in New York City’s real estate market through real estate investment trusts (REITs). Investors can take advantage of REITs to participate in the investment of commercial or residential properties, along with mortgage loans. What sets New York City REITs apart is their exclusive focus on prestigious commercial or retail buildings which are prime and in-demand pieces of real estate.

In essence, REITs provide investors with the ability to access a diversified portfolio of properties that are traded similarly to stocks. This arrangement ensures a consistent stream of dividend income since REITs are mandated to distribute 90% of their taxable income to shareholders annually in the form of dividends. Additionally, investing in REITs offers diversification opportunities. However, it’s important to note that REITs can be affected by risks associated with rising interest rates.

Prior to making any investment decisions, it is recommended to seek guidance from a New York City real estate attorney. At Sishodia PLLC, our attorneys have extensive knowledge and experience in the real estate industry. By consulting with us, you can make well-informed investment decisions. Take the initial step towards maximizing your real estate investments by scheduling a consultation with Sishodia PLLC today.

Taking a Long-Term Approach

Unless you are specifically looking at the property from a flipping perspective, you should expect to hold onto it for a significant period of time to capture the greatest amount of return and hedge against any real estate market volatility.

Purchasing a property that is within your budget, financially self-sustaining, and has a good future prospect for appreciating in value requires a great deal of research and knowledgeable market insight. A good investor will typically work with an experienced agent and real estate attorney who understands investment property in New York City.

If you are considering buying an investment property in New York City, you will want one with critical experience with investment property purchases. Contact the NYC real estate attorneys at Sishodia PLLC at (833) 616-4646 or schedule a consultation through our online contact form.

Steps to Buying an Investment Property Description
1. Determine investment goals Define your investment objectives and desired financial outcomes.
2. Set a budget Establish a budget based on your financial capacity and investment strategy.
3. Research the market Conduct thorough market research to identify favorable investment areas and property types.
4. Find a real estate agent and attorney Seek professional guidance from a knowledgeable real estate agent and attorney specialized in investment properties in New York City.

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