New York (Manhattan) Property Investing Strategies
Posted by Wei Min Tan on April 18, 2023
New York (Manhattan) property investing strategies for the residential condominium market are focused on the $1 million to $5 million price point. This segment represents the studio to 3 bedroom sizes which are most in demand. Anything larger than a 3 bedroom in Manhattan is a mansion by our standards. The below are three strategies we use when recommending investment buys to our clients.
New York Investing Strategy #1: Full service condo in high demand building
When the investment objective is rental income, a full service, high demand building is important. This is because tenants are attracted to the amenities which command a price premium relative to buildings with no amenities.
The Hudson Square two-bedroom condo pictured above, at $3 million in the 110 Charlton building, suits this criterion because it is a full service building with low rental inventory. This means strong demand from renters who are attracted to the luxury amenities and also to the location. The building is steps away from Google and Disney headquarters. A Trader Joe’s grocery store is 2 blocks away. We rented the unit at $8,500 two years ago, and are now asking $13,995.
Weimin’s article, How to buy Manhattan property to rent out as diversification strategy
Contact: tan@castle-avenue.com
Read about Wei Min’s style in Best Manhattan property agents and Role of a buyer’s broker.
New York Investing Strategy #2: Ultra luxury building for above market appreciation
The one-bedroom at 40 Mercer above, at $3 million, features 14 foot ceilings and super large windows in a building designed by Jean Nouvel. The objective was to benefit from above market appreciation because of the building’s star architect, Soho location and ultra luxury quality.
However, the risk is that renting out would take a longer time. Reason is that the market for a $13,000 per month one bedroom is much smaller, as the average one bedroom apartment rents for $4,000.
Weimin’s article, How to Invest in Manhattan Property
New York Investing Strategy #3: Pre-construction new development
Investing in pre-construction refers to buying before a property has been completed. Often, developers start selling 1-2 years in advance of anticipated completion date.
The advantage to the buyer, who is buying based on floor plans and viewing finishes at the sales office, is the pre-construction discount. Booking a unit typically requires 10 to 25 percent of the property price. The balance is due at closing which is also when the property is completed, during which time prices would have increased as well. The risk is that, if there’s a recession and the project stalls, the buyer’s 10 to 25 percent booking down payment would be tied up or even lost.
Weimin’s article, Risks with buying new launch property projects in Manhattan
What We Do
Manhattan property broker focusing on global investors buying Manhattan condos for portfolio diversification and long term return-on-investment.
1) Identify the right buy based on objectives
2) Manage the buy process
3) Rent out the property
4) Manage tenants
5) Market the property at the eventual sale
Deal Examples
1) Halcyon new development in Midtown East. Represented multiple clients in booking at the pre-construction stage, waited 2 years for completion, then rented out immediately at premium rents. Excellent location driver, close to Citigroup Center, Blackstone, Blackrock etc.
2) 99 John Street, represented client in the purchase and eventual sale. Apartment has very rare 500 sqft terrace, commanding premium sale price.
3) Pre-war condo at Parc Vendome, managed renovation process and rented out within 1 week after renovation completed. This is a famous pre-war building close to Central Park and one block from Billionaire’s Row.
After Renovation
Before Renovation
This article was updated April 18, 2023
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