Investing in a property in what is notoriously one of the most expensive cities in the world might seem ridiculous at first glance. However, dismissing opportunities without running the numbers is why some people get rich, and others get left behind.
In his book Rich Dad, Poor Dad, Robert Kiyosaki explains why your home is typically your biggest liability. Many people have the mistaken assumption that your home is an investment, but this isn’t the case unless it is indeed making you money. Keeping this in mind, we have wondered if it is worth investing in a rental condo in New York City. Here’s what we found out.
It’s a simple question that can result in a perplexing rationale: why are you buying a condo in New York City? For some, the answer is simply to have a place to live full time. Others might want to set roots and make a place feel like home. You may intend to rent it out and use it as an investment property, but others are looking for a city location for business transactions, and some might be looking for a tax break.
No matter your reason for buying a condo in New York City, be sure that when you run the figures, they make sense. Oftentimes, people get swept up in the emotional side of securing a property or the bragging rights to owning an NYC address. If you tend to get carried away, be sure to surround yourself with financial experts you can trust.
Almost everyone starts in New York City by renting accommodation since rarely do people intend to live in the Big Apple long term. However, if you think you’ll be in the city for more than a few years, then it might be worth shifting towards paying a mortgage and building up some equity.
Owning your condo also means that you can lock in your expenses without the anxiety of rent hikes. You’ll also have more freedom to renovate your condo to your style and personal needs. However, if you think you might want to rent later on, be sure to check the fine print, as some places (especially co-ops) typically don’t allow for subletting, or have tight restrictions on temporary or long-term rentals.
Prime international locations like New York City are safe bets for your hard-earned money, where there is a large degree of choice and the rentals remain high in both price and demand.
A New York City condo is often a solid investment choice where a property manager could make you money with very little need for personal involvement. Professional property managers like Adam Kapner can guide you by finding potential properties, sealing the deal, and finding excellent tenants.
Property investors are always looking for that rare gem: a cheap place in a prime location. If you are considering a New York City condo, then gravitate towards local specialists who will give you sound advice to reap long-term financial benefits.