alt – buying a commercial property in NYC.
New York City is one of the fastest-growing cities in the world. Thousands of people move to NYC each year and millions dream about living there. New York has everything you need and more and that’s why it’s so popular. Buying a commercial property in NYC is a great idea for many reasons and if this is something you’re interested in, you came to the right place. We decided to give you a full guide to buying a commercial property in NYC and we’re also going to give you some tips.
What is a commercial property?
Before we start talking about buying commercial property, we need to inform those who don’t know exactly what it is. Commercial property is a building or land or any type of real estate intended to make a profit to the owner, either from capital gain or rental income. Commercial property can be a regular house, it can be a mall, or a store, land, hotel, etc. Basically any form real estate that you are going to rent out to somebody or earn money from it in a different way. And New York is full of this type of property.
Why invest in commercial property in NYC?
We mentioned that buying a commercial property in NYC is a great idea for many reasons but we haven’t told you any of them. The number one reason why you should do it is the fact that we’re talking about New York here. New York is a city where prices only go up, never down. This means that if you invest in property now, in a few years you will be able to sell your property for a lot more money. And as it’s commercial property in NYC, we doubt you’ll have your property being empty for longer periods of time.
And even if your plan happens to fail and you don’t have anyone renting your property, making some slight improvements to it can increase its value. This means you gain money either way. And if inflation happens, you don’t have to worry. Commercial real estate investments are inflation-proof. You can increase the rent to match increases in inflation. But NYC’s real estate market is always lively and there’s always people looking for homes, office spaces, shops, etc. As you can see, there are plenty of benefits to commercial space owning.
Know where to buy
The most important part about any sort of real estate investing is knowing where to invest. New York is a very big city. It has plenty of neighborhoods and plenty of investing opportunities. Investing in commercial property in a part of New York that is unsafe or has a bad reputation simply isn’t a smart move. If you do this, you will only be lowering your chances of finding someone to rent it out to.
Buying in Manhattan is always a good idea. It’s home to some of the most exclusive NYC neighborhoods. Having a commercial property in neighborhoods such as Chelsea, Soho, Tribeca, or the Upper East Side is never a bad idea. But the only thing you will have to worry about is how expensive real estate in this part of New York City is. This means that you will definitely need a large mortgage if you want to invest here. And if you have your own company that you will be moving to this property, professional help when moving your HQ is a must in NYC.
Brooklyn, on the other hand, is not as expensive and luxurious yet you will still be able to find someone who wants to rent your property. Brooklyn is where a lot of people live and work because it’s so affordable yet so close to Manhattan. So if you’re thinking about buying a commercial property in NYC, Brooklyn is a great place to start. Queens is a part of New York that is more of a suburb. Here a good investment would be a house that you are going to rent out to a family. After you pay it off with the rent they pay you, you can move to this house with Movers 101.
How much money are you really going to need?
As New York is one of the most expensive cities in the country, you will definitely need big amounts of money no matter which part of New York you’re buying in. Even small properties are expensive in New York. A small studio apartment costs around $700,000. You can only imagine how much a house would be or a building or even an office space. You will definitely have to take out a loan for this investment no matter how much money you are making. Without a million dollars in your bank account, you won’t be able to purchase anything bigger than an apartment in New York City.
The best way to find a good property for investing is to have a good real estate agent by your side. A real estate agent will help you find exactly what you are looking for and sometimes even help you lower the price. This is, of course, another expense that has to be covered. Real estate agents in New York are not very affordable. But if you have the money for commercial property in NYC, you have the money to hire a real estate agent.
And if you are planning to do some improvements to your property, you have to calculate that expense as well. All in all, you will have to spend a lot but it will all come back to you sooner or later.