Investing in Albany NY smart or not ??
Member since 2019 · 5 posts · 0 votes
I’m new to investing but would like to know if anyone has had experience in rental properties in Albany NY will it be the next big market ?
See the agents BiggerPockets members work with in Albany, OR.
See agentsPeople always say Albany is a stable market, with the government, schools, universities, etc.... and that appreciation shouldn't be expected. While I think this is a solid point of view, I think there is some room on the upside, but the Capital Region needs to do a better job of branding itself beyond being the state's capital.
We're an hour from the Adirondacks, a couple hours from Boston, NYC, Montreal. Cost of living (and thus cost of hiring, doing business, etc.) here is low compared to cities like those. Regeneron has a major presence here and the nanotech scene has potential, although I haven't been seeing as much growth in this area as I'd like. I'd love to see Albany turn into a tech hub like Austin, Texas.
Could Albany become the Austin of the Northeast, a large tech hub? I think it could. Is it probable, or even likely? No. Our incompetent state government would need to make some major changes and take on some major initiatives.
But... I like to think it could happen. The government has got to do something about people fleeing Upstate. Albany hasn't seen the population decrease that other upstate cities have, but it's not attracting people, either. I see branding Albany as a "tech" city, beyond just a bureaucratic government jungle, as the most realistic solution to this.
Investing is a risk-reward game. Albany is indeed stable for the reasons I mentioned in the first paragraph... government, colleges, etc. But I also see the upside potential, albeit a small one. Not a bad tradeoff in my opinion, minimal risk (relatively) for a potential large reward.
Would love to hear what you guys think about this!
I'm also looking into exploring Albany area for rental investment. Can anyone suggest or know any areas in Albany to avoid for rental investment?
@Ed Barone hi Ed, does the Action Investors Network meet virtually now? I’d love to join if so.
@Edward Maier it's really great to read you've had good experiences with Section 8 in the Albany area. Im getting ready to put an offer in on a 2 family 2 3 br 1 ba in Rensselaer and hoping to go the section 8 route. Do you have any words of wisdom on that note? @Josh E. o you have any experience with Section 8 in the area?
@Vaishali V.did you end up finding anything in the Albany area?
I'm new and trying to get my financial IQ up to par and learning all the main nuances about real estate investing, I was looking at Albany, NY to get me feet wet in. Currently living in NYC area, so I figured Albany could be an easier market to get into. I know the area somewhat from my college days.
I know this is a few years old but did you ever purchase investment property in Albany NY? I’m in the same goat myself, trying to get my feet wet and Albany seems like a good place to start. Wondering how you’ve done since posting this? Thanks
I'm new and trying to get my financial IQ up to par and learning all the main nuances about real estate investing, I was looking at Albany, NY to get me feet wet in. Currently living in NYC area, so I figured Albany could be an easier market to get into. I know the area somewhat from my college days.
I know this is a few years old but did you ever purchase investment property in Albany NY? I’m in the same goat myself, trying to get my feet wet and Albany seems like a good place to start. Wondering how you’ve done since posting this? Thanks
I'm not an investor personally but wanted to chime in on this since I recently did a series covering appreciation in our area. Many folks in this thread were mentioning not to expect appreciation in Albany but in my opinion that couldn't be farther from the truth. If everyone in this thread had purchased a property 3 or 4 years ago when the thread had most of its activity... they'd have been very happy today!
The average appreciation from 4 years ago, in Albany county as a whole.. was a whopping 18.5%, so 4.6% on average year over year. This is not an anomaly, and even though it has basically been a strong buyers market nonstop since then, data from earlier than that is still consistent in that appreciation does exist here.
The biggest negative I can usually think of for Albany is that the taxes are high in relation to the assessed values (100k assessed value usually means about 5-6k in property taxes). This area has strong rental prices and being that the county is made up of about 40% non-homeowners, there is always strong demand for rentals, and therefore strong sale prices and steady appreciation.
I'm new and trying to get my financial IQ up to par and learning all the main nuances about real estate investing, I was looking at Albany, NY to get me feet wet in. Currently living in NYC area, so I figured Albany could be an easier market to get into. I know the area somewhat from my college days.
I know this is a few years old but did you ever purchase investment property in Albany NY? I’m in the same goat myself, trying to get my feet wet and Albany seems like a good place to start. Wondering how you’ve done since posting this? Thanks
I'm not an investor personally but wanted to chime in on this since I recently did a series covering appreciation in our area. Many folks in this thread were mentioning not to expect appreciation in Albany but in my opinion that couldn't be farther from the truth. If everyone in this thread had purchased a property 3 or 4 years ago when the thread had most of its activity... they'd have been very happy today!
The average appreciation from 4 years ago, in Albany county as a whole.. was a whopping 18.5%, so 4.6% on average year over year. This is not an anomaly, and even though it has basically been a strong buyers market nonstop since then, data from earlier than that is still consistent in that appreciation does exist here.
The biggest negative I can usually think of for Albany is that the taxes are high in relation to the assessed values (100k assessed value usually means about 5-6k in property taxes). This area has strong rental prices and being that the county is made up of about 40% non-homeowners, there is always strong demand for rentals, and therefore strong sale prices and steady appreciation.
thank you @Stefanie Gouvis! This is very helpful! I agree, 3-4 years ago no one would have expected the appreciation there is now in properties.
I've owned property in Albany for 20 years(and elsewhere as well, so I have enough experience to judge these things with some statistical power.) I can confidently say that in Albany, the inmates are running the asylum.
I've owned property in Albany for 20 years(and elsewhere as well, so I have enough experience to judge these things with some statistical power.) I can confidently say that in Albany, the inmates are running the asylum.
I’m curious as to what you mean by this? Is this a warning for investors to stay away?
@Kevin Charles - I'll post a brief and representative anecdote, but I wouldn't feel comfortable directing the investment decisions of others.
Recently- within the past year or two- Albany passed a law stating that all multifamily houses must prove that they are, in fact, multifamily houses. Most investors are unaware of this law. So upon trying to sell a multifamily house, an investor must fill out a form and provide proof that the house was operated as a multifamily prior to 2017. This is over 6 years ago, and many people don't keep business records for that long. So you send in whatever proof you have, then someone sitting behind a desk in Albany decides if in fact your house is a multifamily, or if you must convert it to some other use before being able to sell it. This takes several weeks and costs $100. This is the dumbest law since Indiana tried to round pi to 3 by legislative fiat in 1897.
Bonus story- Albany also passed a "Good Cause" eviction law a few years ago, but fortunately it was stricken by an appellate court in March 2023. The city is steadfast in its beliefs that it can legislate its way to prosperity, but I'd side with Ronald Reagan on this one, who said, “The top 9 most terrifying words in the English Language are: I'm from the government, and I'm here to help.”