10 Reasons Why You Must Invest in New York

  • September 01, 2022

10 Reasons Why You Must Invest in New York

In New York City, superlatives abound. Some of the first things that come to mind are the "best" pizza and the tallest skyscraper (in the United States). There are, however, a tonne of odd and unexpected ones, such as the smallest park, the shortest-lived building, the narrowest store, and even the smallest subway door.

With an infrastructure that encourages success, New York State is constructing the future commercial world. A strong workforce, cutting-edge innovations, and large investments in the fundamental building blocks of progress—infrastructure and transportation—have propelled New York State's economic climate to new heights. The State of New York is exhibiting a strong commitment to maintaining its competitiveness in a shifting global economy by buoying mind-blowing projects in other sectors as well.

The New York realty sector is certainly a juggernaut

Although the luxury condominium market has seen a slowdown in transactions since the end of last year, sales have remained strong during the first quarter. According to the Olshan Luxury Market Report, fewer transactions over $15 million occurred in February and March, which examines contracts signed weekly for $4 million and more.

The ultra-luxury buyer will pay $10 million or more, and they seek a hassle-free and recently constructed condo. Most cooperatives advertised for more than $10 million sell slowly, typically taking a year or longer and undergoing multiple price reductions before they find a buyer. In a nutshell, the NYC real estate sector has dipped its feet into the waters of success, growth and development. As a result, New York State is a Mecca for real estate investors looking for relatively stable prices, appreciation and liquidity for income properties. Here are a few benefits if you invest in New York real estate.

Benefits of investment in New York

The dynamic city excels at developing value-added, master-planned communities that satisfy the full spectrum of lifestyle requirements. It has diversified into related economic sectors to increase value for its residents while actively pursuing expansion in its main business of creative, high-quality real estate development. As the most blossoming and growing city globally, it is well-positioned to take centre stage through its concentrated expansion and diversification plan. Let’s explore all the related benefits of investment in New York.

The growing job market is triggering demand

The financial and security sectors have been stable for some time now, accompanied by the lowest unemployment rate. Despite the possibility of significant employment losses from any changes, the job market is thriving due to numerous sizable developments that have brought more than 30,000 jobs to the city, including Essex Crossing and Pacific Park. The City of New York and metropolitan and suburban areas have contributed the most, boosting opportunities by approximately 20% over the past ten years. This indicates a significant rental demand to real estate investors. Consequently, it is leading to the inception of numerous investment opportunities in New York.

It seems that the employment situation across the country would positively impact the real estate market. The better businesses are doing, the more employment there is, and the more the real estate sector will thrive. This holds in a state like New York. Since businesses' capacity to acquire and sell real estate is directly impacted by their growth.

Thriving mixed-use real estate sphere

As businesses grow, they look for more office space, larger buildings, and better locations. Businesses grow to offer sites close to their clientele, but these changes can only occur when the job market is good, and employers are incentivised to look for more space. In recent years, as the real estate industry was affected by the downturn caused by the COVID outbreak, commercial real estate in New York has kind of gone downhill.

The most significant of these repercussions was a rise in bankruptcies and foreclosures. This was a good thing for people to invest in New York because homes in desirable locations such as 111 West 57th Street, Aman New York Residences, The Towers of the Waldorf Astoria and The Centrale became investor-friendly.

Furthermore, prices were further decreased by low mortgage rates for both new home buyers and those wishing to refinance. However, for businesses already feeling the consequences of the recession, this added insult to injury since any assets whose worth was based on property value also lost value. However, the commercial real estate sector is back on its feet due to recent job growth, and the National Association of Realtors anticipates this trend to continue in the years to come.

In contrast to a few years ago, New York now boasts the nation's second-lowest commercial vacancy rates as vacancy rates are declining and leasing and renting are growing in popularity. Now is the time to dive in for investors seeking commercial real estate investment opportunities in New York!

Skyrocketing demand for rentals

Both long-term and short-term rentals of NYC investment properties are in high demand. With roughly 6.5 million tenants, New York has one of the greatest ratios of renters to homeowners in the US housing market. The high price-to-rent ratio of 33 in the New York real estate market demonstrates that tenants in the Big Apple prefer to rent than buy.

One of the key factors in the success of traditional NYC real estate rentals is this extraordinarily high demand. The short-term rental market is seeing a similar problem. Together with Tokyo and Paris, NYC is one of the most popular Airbnb destinations because of its reputation as a top tourist destination worldwide and a significant economic, financial, business, industrial, academic, cultural, and artistic hub on a global scale.

A high occupancy rate on Airbnb and a good return on investment for short-term rentals in New York City are guaranteed by the more than 62 million tourists that visit the city annually. This is one of the core reasons to invest in New York.

Property value appreciation

The extraordinarily high values of new properties in New York are one of the most crucial things real estate investors should consider before deciding to purchase rental homes in the NYC housing market. The analysis for investment opportunities in New York reveals that the median price in The City That Never Sleeps outstrips the median home value of $231,000 by $388%. This means prospective investors for luxury properties for sale in New York should devise a reliable rental property financing strategy before beginning their search.

With a natural appreciation rate of 136% over the previous 20 years, New York City real estate prices have outperformed the state and the national averages. Prices are predicted to increase relatively slowly in 2022, at a rate lower than the national average of real estate appreciation. This is one of the reasons why you must invest in New York.

Investor friendly market

Another benefit investors should consider is that New York is currently a buyer's market in contrast to many other top cities for real estate investing. In addition, it is anticipated that New York real estate prices will not change shortly. As a result, investors won't have to engage in bidding battles with other property buyers, which is extremely valuable to novices who have never purchased real estate.

 The Big Apple will continue to rank among the finest destinations in the US housing market to invest in luxury properties in New York, according to the optimistic NYC real estate market projection for 2022.

Promising future

NYC's real estate market is the epicentre of the global economy, and the appetite for luxury properties in New York is growing. The real estate industry's structure is evolving, and 2022 will be no exception. Automation, demography, investment objectives, new laws, and housing supply difficulties are significant drivers affecting investment opportunities in New York.

The NYC real estate market is still in flux. According to estimates, many units are needed to meet demand through 2030. High occupancy rates are prevalent. It indicates a lack of genuine commitment to the rental sector. The rental market is quite a sound sector and has been doing phenomenal. Demand is never satiated, and rents continue to rise. The terror of a pandemic on the rental market was ephemeral. Rents have not decreased and are mostly unchanged.

A home buyers’ bonanza in New York

According to statistics from the previous two years, demand for properties in New York is robust regardless of changes in the housing market. New York State is becoming a more reliable investment market as homebuyers smash all prior records. According to a new estimate, home sales in Manhattan reached a record $7.3 billion in the first few months, despite rising mortgage rates.

According to the Miller Samuel and Douglas Elliman study, 3,585 sales were completed in the New York borough during the first quarter of 2022, an increase of 45.9% over the same period last year. The third quarter of record-high sales was marked by the growth in sales, which were up 48.9% from pre-pandemic levels. More purchasers are returning to invest in New York even if mortgage rates are above 5%.

Increasing demand for new properties in New York

According to Miller Samuel and Douglas Elliman's research, the city's listed inventory fell by 4.4% to 6,906 for the third quarter as demand remained brisk. At the same time, the months of supply, or how long it would take to sell all of the listed inventory at the current sales rate, was 5.8 months, up 23.7% from before the pandemic and 34.1% faster than the previous year.

Buyers were forced to move swiftly as housing prices soared, with the median sales price climbing 10.7% yearly. This resulted in a market that moved quickly. However, buyers aren't just having trouble finding listings in Manhattan. Although this may ease as rates continue to increase, buyers face competition nationwide.

A safe source of passive income

Many New Yorkers cannot afford to purchase luxury properties for sale in New York. Still, an investment property can be a home run for those who can manage the costs and obligations of being a property owner. Passive income and equity development are two long-term advantages, and if you play your cards well. If you invest in New York, this income could even support your family for several generations.

After all, some of the richest people in the world have a real estate background. Passive income is among the finest justifications to invest in New York. Yes, there are numerous ways to turn investment opportunities in New York into passive income while a sponsor or property manager handles the grunt work. Any true real estate investor, whether they are a lone proprietor or a member of a syndication group, generally wants to generate passive income.

Tax advantages for NYC real estate investors

There are several tax advantages for real estate investors in New York – mostly related to luxury properties for sale in New York. The tax exemption programs encourage people to invest in New York. Using the PILOT program (or Payment-In-Lieu-Of-Taxes), commercial real estate owners can provide their city and state federal funds. The PILOT program offers financial incentives to landowners who want to remodel or start fresh. For new properties in New York, NYCIDA provides incentives, including tax advantages like a reduction in property tax for up to 25 years and the waiver of city and state sales taxes.

The 421-A tax abatement program's new name is Affordable New York, beginning of 2017. The initiative additionally emphasises accessible homes. The rules do mention affordable neighborhoods in the five boroughs. A 100% tax reduction is available for up to 3 years during construction and 35 years following construction for properties with more than 300 residential units. If a multi-family residential structure has recently been renovated, you can also be eligible for this tax break.

Lucrative investment options in New York

As the metropolitan and global business hub thrives with growth and development, New York offers its prospective investors some promising real estate projects to invest in. If you are planning on investing in the metropolis, then here are a few communities offering** luxury properties for sale in New York**.

111 West 57th Street

Gleaming with opulent design, this landmark on the Manhattan skyline is a perfect Maison de luxe for you and your loved ones. It is a modern masterpiece, perfectly Centered on Central Park 111 West 57th Street is a monumental design achievement that marries the thoughtful restoration of one of New York City's most cherished landmarks, Steinway Hall, with a soaring 1,428-foot tower of epic grandeur. The condominium comprises the original landmark, Steinway Hall. The design is calligraphic and glints on the skyline due to its elegant and opulent exterior, finished in terracotta and bronze.

With graceful central entrance galleries featuring horizon-deep views north and south and monumental ceiling heights, each full-floor tower residence combines a grand scale with comfortable, private settings for contemporary living.

Aman New York Residences

Aman New York will revitalise Manhattan's landmark Crown Building, which is situated at the intersection of Fifth Avenue and 57th Street. The Crown Building will be refurbished and given the Aman spirit as part of Aman New York's huge restoration, which was masterminded by famous architect Jean-Michel Gathy of Denniston. Aman New York Residences provide a unique opportunity - a location unrivalled in Manhattan that embodies the Aman way of living in perfect harmony.

Residents will have access to a private entrance on 56th Street that is distinct from the hotel for themselves and their visitors. A high acoustic specification, integrated security and telecommunications systems, up to three fireplaces, Gaggenau kitchen appliances, underfloor heating in master bathrooms, demisting mirrors, rain and steam showers, and bathtubs are all features found in all residences.

The Towers of Waldorf Astoria

Internationally renowned designer Jean-Louis Deniot was inspired by the hotel's traditional splendour while designing this concrete marvel. The apartments offer a balance of modern comfort combined with Art Deco opulence by fusing the old and the new, the European and the American, the large and the intimate. With windows that mirror the structure's original design and fill the rooms with dynamic views of the New York cityscape, each residence embraces the scale and majesty of the original architecture—a perfect combination of artistic and practical considerations.

Kitchens have unique Deniot-designed wood and lacquer cabinetry that was made by the Italian design firm Molteni&C. These cabinets deftly conceal top-of-the-line Gaggenau appliances. Heated flooring, rainfall showerheads, and unique Italian vanities are features of elegant primary bathrooms. These elegant contemporary spaces have a sense of antiquity thanks to their handcrafted finishes, natural materials, and subtle Art Deco influences.

One57

One57 from Extell Development is the epitome of the Billionaires' Row lifestyle. This beautiful hotel compound and exclusive residences are located in the 90-story structure. The Word is that the billionaires are competing to pay record-setting amounts for its trophy penthouse apartments. The tower, located immediately south of Central Park and designed by Pritzker Prize-winning architect Christian de Portzamparc, rises more than 1,000 feet above 57th Street.

The 92 condominium units on the upper part of the building have a separate entrance on 58th Street, including interiors created by Thomas Juul-Hansen. The building has upscale features such as a full-service catering kitchen, indoor pool, private fitness facility, performance space, private dining room, library, and lounge area, in addition to a 24-hour doorman and concierge service. There is also on-site parking.