What About New York City?

Question

Good morning all. I've been reading a lot of articles saying that people are fleeing the cities cheaper places to live. Properties in NYC are discounted 20-30%. I was just curious what your thoughts were on investing in NYC.

Alexander Szikla · Answer

Long term, I think NYC will come back as it always has time and time again. I am also a great believer in investing when there is distress and deploying capital when you can.

Personally, I have had the best luck purchasing co-ops from estate sales. They are less desirable than condos and families typically just want to move on and don't wait around for the highest and best offers.

Even purchasing at the peak, my units still have plenty of equity (albeit less due to COVID-19).

The only downside is (typically) high monthly maintenance costs and (currently) a tough rental market.

If you are looking for yield in the short run, Manhattan may not be for you. If you are seeking out asset accumulation and equity appreciation over the long term then there are certainly fortunes to be made

Brandon Cohen · Answer

It depends on what your immediate needs are.  Right now the sales market and rental market are both soft.  So if you’re able to hold for a few years knowing you’d have a tenant paying below market rent, you’ll be fine.  I’m biased to NYC as I live and sell real estate here, but I’m selling a lot of apartments right now to people that believe in NYC and know now is a great time to get a good deal.  if you’d buy with the plan of living there yourself, it’s a no brainer.

Steven Foster Wilson · Answer

NYC will always be a hub of international culture, business, and night life. However investing can pose alot of difficulties with high taxes, prices, and landlord tenant laws.

Jared Forman · Answer

Personal experience, I am bullish on Manhattan. If you follow the elliman reports, the rental prices keep going down. Month over month apartment units rented is up.

I am only focussed on the Manahattan market and know little to none about the other boroughs.

Rich Ramjatan · Answer

@Jonathan Chan

Maybe specifically Manhattan. But outside of Manhattan still remains relatively high .

Jason Lee · Answer

Where are you getting your numbers? Median sales price in Manhattan in Q3 was higher than in Q1 and higher YOY.

Raul R. · Answer

@Jonathan Chan

Maybe true for Commercial but not for Residential..

Scott Wolf · Answer

If you can afford to buy, and at low returns, it's probably a good time to buy in NYC.

What About New York City?

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