Location has been a powerful factor in business growth over the years and real estate is not left out of this. So, if you are a foreign investor looking for the hottest location to invest in with good dividends this season, New York has afforded you the opportunity in terms of safety and security. You may wonder why this city has been singled out going by the fact that major cities of the world promise great too, considering the fact that shelter is one of the primary needs of man. Some factors and yardsticks have been used to measure the categorization of this city as the best. Care to know them? They are simply stability of prices, relativity of liquidity and ease of accessibility among others.
The stability of prices in the market for real estate investment in New York City has made it a desirable location for investors, and others who wish to embark on property investment. It is a major factor most marketers and investors consider before embarking on this business. This is characterized by under leverage and high transparency as there is no hidden agenda. Even for those who are living elsewhere, this central factor has prompted them to invest here.
On the factor of ease of accessibility, this notable city has the upper hand in real estate investment compared to other countries of the world where the market is a bit closed or hidden to the public and other interested investors. In that case, only the broker can be said to have opportunity to investment listings, and it is only what they make known to the public that will be made known to them. This is quite different in New York City as everyone has equal access to the market.
While it is good to have good sum of money for the market, the investor is expected to be above board and be extremely good financially. To aid ease of investment, it is good to get a good agent that understands how the market is, and who can further help to crunch excess numbers for investors to safely invest without any future harassment and disappointment.
Apart from New York City, London and Hong Kong are also known as leading markets for real estate investment though in different parameters. London and Hong Kong seem to be the highest with $4,480 and $4,682 for average square foot (per price) of apartment respectively while New York City records $2,586. This is quite an advantage for investors as the market is steadily growing. And, in this season, it is wise to invest in such a market that has about 19 percent increase in price around 2014 compared to 5 and 1 percent increase in London and Hong Kong’s prices respectively. While we can conclude that both London and Hong Kong are becoming stale and also leveling off, the New York City market is fast gaining ground with lots of benefits.
When it comes to tax payment by foreign investors as well as its potential growth and increase over the next years, the New York market has the upper hand over London and Hong Kong. In comparison to the other two markets, the New York market’s sale of real estate is worth $36.85 billion in volume. In London, the volume of real estate sales within the same period as New York record is $29.7 billion and $4.4 billion in Hong Kong. It will be a thing of joy for any investor to have high dividends from his/her initial investment within this period. This is remarkable and note worthy, a good encouragement for upcoming and intending investors in real estate.
New York and London have been considered a good ground for investors (local, foreign and commercial) because of their high rental rates even though this is more pronounced in New York. There is no better advantage for investors than making adequate profits from a property that can go as high as possible in rents in terms of annual return and dividends. For instance, an investor who has a property worth $2 million in New York will get an extra $1000 and above on monthly basis because of the high rates of rent in the city. With its common characteristics of gradual market growth in relation to pricing, New York is looked upon with its potential tendency for further records in growth.
Reasons For The Choice Of New York Above Other Markets
Out of the three real estate investment markets, London, Hong Kong and New York, the last one is, at present, the thriving one for investment, and also a good recommendation for investors. This is due to its current leadership as well as being the big gateway environment. With the current high prices in both Hong Kong and London, one might initially want to counter this assessment and rating. But, a closer look at the luxurious condo formation of New York that makes it the most hospitable environment for real estate investment, the rating is justified.
The other two markets, in the previous years, have enjoyed their sales on the grounds of long term growth as well as location. These two factors have given them an edge over New York in the past, but, of recent, the investors within their territory especially the Chinese have diverted their focus to the growing market in New York, considering its growing potentials in few years’ time. With the prediction of New York overtaking London in real estate investment by 2015, investors have seized the opportunity to shift their attention to the new market.
Another reason why New York is considered a good investment opportunity is because of the relationship between London and the weakening economy of Europe compared to that of the US, which is considered as better and stronger. The economy of an environment is a major factor that is usually considered by investors.
Other possible factors usually considered by investors in real estate include location (the distance to other public areas like subways), property’s developer, pricing, sales versus rental returns, condominiums versus cooperatives, size, tax abatement among others.
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