Alessio Lidozzi discusses the New York City real estate market and offers some tips on investing. Alessio talks about the different between co-ops and condominiums and how that difference can significantly affect the price. He also discusses what to look for in terms of locations and knowing the developer or the co-op board. Give it a quick read so that you can make an informed decision when purchasing real estate in NYC.

1. Investing In New York City Real
Estate: Things To Know

2. When it comes to investing in the
New York City real estate market,
there are some guidelines that you
should follow.

3. New York has one of the most stable
markets in the world due to the fact
that it is under-leveraged and highly
transparent.

4. This doesn’t mean, however, that is
a good investment for everyone.

5. The open real estate market means
that everyone has access to the
same inventory, allowing an average
Joe to compete with a top real
estate broker.

6. But you also need to be in great
shape financially; New York City
properties are expensive, and you
need more than just some money in
the bank.

7. Below are three things that you
should consider before investing in
NYC real estate.

8. Condominiums and Co-ops

9. Out of all the residential properties
in Manhattan, less than 23 percent
are privately held.

10. Out of those that are privately held,
two-thirds of them are cooperative
units.

11. The rest are condos or
townhouses.

12. Since there are more co-ops than
condos, they are typically much
cheaper (on average, they are about
25% less).

13. However, there is a length approval
process that goes along with co-ops,
sometimes causing more headache
than is worth the money.

14. Co-ops require proof of net worth,
along with a list of your liquid assets,
tax returns and brokerage
statements.

15. On top of all of that, you’ll need to
make a down payment of at least 20
percent.

16. Co-ops are also very difficult to rent
out due to the board approval
process.

17. However, this processes ensure
that your neighbors are
financially stable.

18. Condos, on the other hand, are
very flexible.

19. They can be sold with relative ease,
rented out to whoever you want -
there’s a much lower barrier for
entry.

20. Jarrod Randolph, founder of JGR
Property Group, recommends
investing in a new development due
to the fact that they appreciate in
value disproportionately to the rest
of the market.

21. However, only 10% of the
marketplace has properties built
within the last five years; you need
to act fast.

22. Neighborhood

23. It’s not as important to have your
real estate in a prestigious location;
rather, know what is within walking
distance.

24. Close proximity to a subway
station is something that a lot of
renters look at as a make-or-
break for any apartment; they’d
rather have a smaller space than
have to walk a half a mile to hop
on the train.

25. Also, look at the retail landscape
in the area.

26. Having a grocery store close is
something that has a pull on
tenants.

27. Know The Developer

28. When buying a condo, it’s
important to know about who
developed the property.

29. A broker can help you greatly in
this area; find out their track
record, see how their properties
have performed in the past.

30. You want to make sure that
you’re purchasing a quality
product.

31. Co-ops are a bit different.

32. You want to make sure that you
know everything about the
board - both its previous
decisions and where it stands on
future changes.

33. If they are looking to do a
complete overhaul on the
building, that will significantly
impact you financially.

34. It’s important to know not only what
they’ve done in the past but where
they’re headed.