Investing in real estate abroad can be challenging when it is based on growth forecasts and assessments, or on considerations of geographic proximity and impressive marketing catalogs. Real estate investments in New York attract Israeli investors and investors from other countries in the world – precisely because of the power of the city and the data it presents.
An apartment in New York is like a dream of the Big Apple, the center of world trade and home to the Stock Exchange, the powerhouse of high-tech, the economy, academia, tourism, and the center of attraction for immigrants from all over the world. However, in the reality test, it is evident that the residents of New York City, for the most part, do not have the ability to purchase a residential apartment, which leaves them dependent on the uncontrolled rental market.
Some important facts to know about real estate investments in New York
1. The city of New York is one of the three leading cities in the world economy and is responsible for the main characteristics of the growth of the state of New York, and the focus of the economy of the entire USA.
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2. The population of New York City stands at over 10 million inhabitants, and shows positive immigration data indicating a growing demand for properties in the city.
3. About 70% of the population of New York residents live in rentals.
4. Property prices in the city are not among the cheapest compared to real estate costs in other cities in the country, but the rental costs are also extremely high and produce yielding real estate and high returns right from the start.
5. In the past year, real estate prices in the city of New York in the USA increased by 5.7%.
6. Although real estate prices in New York are not considered low – predictions by real estate and economic experts in the US claim that the pace of price increases in New York after the subprime crisis and the Corona crisis have not yet reached their peak.
Real estate investments in New York – challenges and characteristics
Investments in New York attract many investors, foreign and local, including the Israeli investors, who enjoy a real estate investment channel that shows demand among the highest in the world, a leading city in the fields of tourism, culture, commerce and business, and is divided into districts and neighborhoods that attract diverse communities and populations.
At the same time, the high housing prices make real estate investments in New York less available for investors with low equity who are looking for investment opportunities that involve a lower threshold of entry.
Precisely for these investors, the SDB company offers investment solutions and projects that open up the possibilities for real estate investments in New York and for an effective return for the investors’ money through a variety of investment avenues available and adapted to the investors’ needs. , Manhattan and others.
Real estate investment planning
A property in New York may be a status symbol, making accessible the possibility of visiting the most vibrant city in the world only a 10-hour flight away. At the same time, real estate investments in many cases deal with the investor’s need to increase the existing capital in a short period of time, both for personal needs and in pursuit of leverage and additional investments.
One of the characteristics that constitute a prominent advantage for real estate investment channels in New York marketed by our company, is short-term investment planning, ranging from 18-36 months.
Investment planning is based on buying at a low price and selling at a high price.
Among the characteristics of the purchase transactions for real estate investment needs in New York for Israeli investors:
1. Locating projects that are in advanced construction processes, after receiving permits and investment by the developer.
2. Examining the improvement potential of the properties in the project, in accordance with the plans and the quality of the construction, and focusing on leading demand areas.
3. Examining the entrepreneur’s characteristics – choosing a local, experienced entrepreneur with a reputation for success and populated projects.
4. The raising of the capital is carried out on a group platform, where the investors are not obligated to capital equal to the value of an apartment in New York, but to a minimum entry threshold required for each project, where the final return will be derived in relation to the investor’s percentage of the total investment amount.
Among the leading types of projects:
Townhouse – Townhouse type projects are projects that answer the American dream of a detached house in a pastoral environment, at prices aimed at the local middle class. The projects are based on the purchase of lots intended for construction or on the purchase of an area that includes an existing building, and through its demolition or expansion, the construction continuity of a series of detached houses that share a common wall with their neighbors. This is a building style in demand in the local communities in Brooklyn, as a response to living in the urban metropolis in a suburban and community atmosphere.
Renovation of existing buildings and rebuilding – projects based on the purchase of old shared apartment buildings, which include neglected apartments with a low value in relation to the potential, and contracting work that includes external and internal renovation of the building and the housing units, for the purpose of improving and increasing the value of the apartments. Unlike the urban renewal practiced in Israel, on this platform the developer purchases the apartments at a low price and is not obligated to the tenants. These apartments often belong to the owners of the building, who rent them out at a low price due to their condition and are required to incur multiple fixed expenses for maintenance and repairs, which enables the purchase at a price lower than the market price and the jump in yield thanks to the improvement.
– Projects in the field of building renovation and rebuilding may include apartment complexes in a shared building, as well as residential complexes in single-story townhouse-style construction.
It is important to note that despite the many investment options, the emphasis on leading demand areas that are not volatile and show high demand and a constant increase – it is especially important to choose and manage any real estate investment with comprehensive professional support, which includes local real estate experts, financial advice and a legal framework – tools and guarantees available All investors through the SDB company.
