If you’re considering buying an investment property in NYC here are some key things to look for in a neighborhood:
Before the boom but not after the burst: When choosing a neighborhood to invest in you want to make sure to choose a location that is up and coming. It should be on its way to being popular but hasn’t quite boomed yet. If you purchase in an area where housing prices are already at an all-time high, you don’t stand to make a return on your investment. You also don’t want to wait until the financial bubble bursts. This means that this neighborhood is already over with and buyers are already moving on to the next best thing. The key is finding that sweet spot right in the middle.
New construction: One of the ways of predicting when a neighborhood is about to boom is if there are many new buildings going up. New buildings means new tenants, which means more light will be shone on the neighborhood. A developer is not going to build in a neighborhood that no one wants to live in, so trust that fact and keep an eye out for new buildings.
Gentrification: Looks for neighborhoods that are being built up. If you notice a neighborhood that was formerly run down beginning to clean up its act, this would be a good neighborhood to invest in. Newly paved roads, newer, nicer stores, and richer demographic are all signs that a neighborhood is being gentrified.
Surrounding shops: Finding a great apartment or house you want to invest in is your first step, but you also have to make sure there are essentials nearby. Look for an area that has lots of shops, corner stores, Laundromats, and super markets. This will only increase the value of your investment.
Accessibility: Lastly make sure the area you pick is convenient to get to. Something 3 blocks from a high volume transit center is going to be worth more in the long run than a building too far off the beaten path. It will attract more buyers or renters. Pick a neighborhood with many transit options; either several subway lines or a mix of subways, buses, and shuttles. It’s also a good idea to choose a place where you know the transit is about to improve, for example the number 7 train line extension. This new project will bring subway service all the way over to 11th avenue which has since been an area seriously underserved by public transit.
All of these details will lead to a more competitive market for your property. The more renters or buyers you attract the better off you will be. Also, if you’re choosing to live in your investment in the meantime, you’ll have everything you need right at your fingertips.
