NYC Broker Confidence Declines Entering Into The Slower Fall Season

The Real Estate Board of New York (REBNY) published their broker confidence index for the 2nd quarter of the year and it shows a decline from first quarter results.  REBNY which surveys its residential and commercial brokerage division members to measure their confidence in the New York City real estate market publishes their results quarterly with the top index being a 10.  The index shows that broker confidence decreased in the second quarter of 2018 to 5.53 out of 10.  This is a decrease of 0.25 from the first quarter of 2018.  Residential broker confidence levels hit a record low of  of 4.63 in the second quarter of 2018.

The report indicates that the main factors for the decreasing optimism with broker circles are political uncertainty, the expectation of rising interest rates, how the tariffs will affect investments, concerns about the implications of tax reform.  John Banks, President of the REBNY states "As federal policies have taken effect, local real estate markets have been seeing their impact on buyer hesitancy and seller uncertainty.  Despite these conditions, New York City real estate brokers remain positive overall about the present situation and future real estate market."

Some brokers believe that pricing and the lack of housing remains a major concern in the residential market.  One broker states "The biggest issue is still pricing, but a close second place is condition of the apartment," said a residential broker. "Buyers are slower to purchase an apartment that needs a good deal of work."  All of these concerns are affecting future confidence in the market as well.  The Residential Broker Future Confidence Index  which is an outlook on the future market six months from the date the survey was completed hit a number of 4.46.  This is 1.18 decrease from the first quarter of 2018.

Blue Harbour Property Management is a full service NYC property management company servicing the boroughs of Queens, Brooklyn, Manhattan and the Bronx.  Whether it be a 1 bedroom condo or multi-family building we are able to assist our clients maximize their investments.

http://www.blueharbourpropertymanagement.com/nyc-broker-confidence-declines-entering-into-the-slower-fall-season/

Avoidable Mistakes for the First Time NYC Real Estate Investor

When investing in real estate in New York City, it is common to think that you will turn a serious profit with a quick flip.  Having that mentality has worked in the past but now more than ever it is important to have a long-term strategy in investing in real estate in New York City.  The gains that you will receive normally come from solid real estate investment strategies which include increasing the value of your holdings by hiring a reputable New York City property manager.  Hiring the right property management company will only enhance your ability in building equity and increasing passive income. 

Quick returns as we have mentioned are rare.  Many people go and come out of the real estate investment industry quickly because they never received the returns they were expecting or outright lost money.  So what are some common mistakes that we see from first time real estate investors?

Purchasing a property you wouldn't think is suitable for yourself

If you cannot imagine yourself living in the house you are considering purchasing then you shouldn't.  The question I always ask clients is "What if something catastrophic happens...would you live there?" If the answer to the question is no then the property isn't the right fit for you.  The goal on your purchase is to find something that tenants would be receptive to.  If you are not that interested, than this would be a clear sign that you wouldn't be as energetic into the investment.   

Not having "rainy day" money for emergencies

There are many times that I have seen investors go into a transaction with zero reserves.  This would put a strangle on your personally if you do this.  You should account for basic monthly expenses as well as have a reserve on hand in the event of a unforeseen repair or expense.  You should always take into account utilities expenses and general maintenance fees such as the property management and landscaping.  You should also have a cash reserve fund in place in the event that a tenant decides not to pay rent for instance or the boiler needs an emergency repair.  The failure to do this can result in potential withholding of rent.  Also you will also have to tap into your personal money to fix such as a retirement account or credit card which will affect you and your family for potentially years. 

Taking it personal and forgetting the bottom line

At the end of the day, owning a rental property in New York City is nothing more than business.  You should treat it that way and not let your emotions run your decisions.  Sometime it can seem personal when you have tenants and they want to tell you their life stories for their failure to pay the rent.  You have to be tough and always treat the managing of your property like your own business.  A top-notch NYC property management company can assist you in staying on course with your objectives.  They will also lighten your load and allow you to concentrate on other pressing issues that you may or may not have.  This can result in shedding the burdens that you may have and allow you to purchase additional rental properties.  

Addressing these common mistakes will help you along your way in being a successful real estate investor.  Sure there are other variables at place in maximizing your returns but by focusing on the tips above will help you in achieving your long term goals.

If you are in need of property management in New York City for your real estate purchase, Blue Harbour Property Management can assist you.  Contact us at 718-843-1185 or email at info@blueharbourpropertymanagement.com.

Blue Harbour Property Management is a full service NYC property management company servicing the boroughs of Queens, Brooklyn, Manhattan and the Bronx.  Whether it be a 1 bedroom condo or multi-family building we are able to assist our clients maximize their investments.

http://www.blueharbourpropertymanagement.com/avoidable-mistakes-first-time-nyc-real-estate-investor/

Bronx Remains Hot and a Great Opportunity for Real Estate Investors

The Bronx, once considered a symbol of urban blight and an example of fiscal irresponsibility has now become a hot real estate market with tremendous opportunities for the future.  With prices remaining high in Brooklyn and Manhattan many investors are deciding on planting their feet in the Bronx because of lower prices and the flux of businesses that have been moving to areas such as Mott Haven, Melrose and Port Morris.   

Many developers are buying up vacant land and/or renovating existing properties.

Bronx-wide real estate sales has increased tremendously within the last few years.  For instance, in 2014 borough-wise investments for the year were $1.1 billion.  That amount skyrocketed held by two development projects to $2.4 billion in 2015.  The two projects were one by The Chetrit Group and Somerset Partners to build two 25 story towers at 2401 Third Avenue and 101 Lincoln Avenue and The Hudson Companies La Central where they are planning to build 992 affordable units in Melrose.

Major real estate investors are also entering the market at Related Companies purchasing 737 units throughout that borough as well as Harbour Group International along with York Equities purchasing 38 buildings encompassing 1000 units.  Overall multi-family sales increased 67% in the borough.

With all this flurry of activity it is no surprise that residential real estate has been on an uptick.  According to REBNY Third quarter report,  overall sales in the Bronx has increased 13% year over year with home prices increasing to an affordable (in comparison to Brooklyn, Manhattan, Queens) $400,000. City Island, Pelham Bay, Pelham Strip, Country Club, Throgs Neck, Schuylerville remains hot with average sales price of a home up to $525,000 an increase of 14%.  All of these indicators show that the borough will be ripe for investment for the future.

If you are in need of a professional property management company servicing the Bronx, contact Blue Harbour Property Management.  We will consult with you and come up with a strategy of maximizing your real estate investment.

http://www.blueharbourpropertymanagement.com/bronx-remains-hot-great-opportunity-real-estate-investors/

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