New New York: How to buy an apartment in the primary market

Construction market on the rise
New York is constantly changing: the old buildings are demolished, new buildings, the former industrial premises are transformed into multi-million dollar lofts, many areas covered by gentrification and renewal of housing stock.

According to the New York City Building Code Congress (New York Building Congress), in 2013 was issued 71% more building permits housing than in 2012 (a total of issued permits for 18,095 housing units in 1383 buildings). For the first time since 2008 the number of permits issued increased immediately in all five boroughs of New York. The most active construction is carried out in Brooklyn. There is planned for more than 1,000 housing units more than in Manhattan. The number of permits in percentage terms increased the most in Queens (107% per year). There, in the area of Long Island City, planned to build two high-rise buildings taller than 30 floors 925 apartments. Project called Hunter's Point South will be the largest since the time of Co-op City in the Bronx.

Now the majority of residential units in buildings under construction in Manhattan - a spacious apartment worth several million dollars. In the past, there was dominated by the apartment - both secondary and high price ranges. Today's market is focused on affluent buyers, mostly foreigners. According to Miller Samuel, more than half of the buyers of New York buildings - foreign investors. What percentage among them are Russian unknown, but, according to New York Times, among the buyers of primary residence in New York, the Russians as much as the Chinese and Brazilians. According to Knight Frank, at the New York elite primary real estate market as numerous buyers from the UK and India.

Some of the most outstanding new housing projects in New York:

28-1 West Street, 520. Near the High Line Park will be built building designed by renowned British architect Zaha Hadid. Luxury apartments cost from $ 4.6 million. Will have spacious terraces and floor-to-ceiling windows. Price for penthouse - $ 35 million.
Park Avenue 432. When completed in 2015, 425.5 m tall skyscraper will be the tallest residential building in New York. Penthouse located in the tower, is estimated at 76.5 million dollars.
Bond Street, 10. In I quarter of 2015 will complete the construction of buildings on 11 apartments cost from $ 4.5 million.
West 53rd Street, Tower 53 Tower Verre height of 320 meters is built next to the American Museum of Contemporary Art, designed by architect Jean Nouvel. Complete the construction of a building with 145 elite condominiums planned until 2018.
New Expensive faster than Resellers
According to the company Douglas Elliman, in Manhattan in the II quarter 2014 prices for secondary condominiums increased by 6.3% year on year, and the new buildings for the same period rose by 66.3%. That is the primary real estate in Manhattan is growing in value much faster.

As reported by Bloomberg, in 2013, builders paid for plots on average 8070 dollars. / M². Taking into account the costs of the construction cost per square meter increases to 18-26 thousand. Dollars. Thus, developers are hoping to make a decent profit risks.

Manhattan market for new condominiums - most overheated in New York. Foreign buyers prohibited from purchasing cooperatives, so they focus on condominiums. As in London and Hong Kong, foreigners prefer to primary housing: as a rule, modern apartments are spacious and have the opportunity to create the layout and design of the individual project. The average price for new buildings of Manhattan in the II quarter was $ 3.5 million.

Best US cities for young professionals by Forbes magazine

Over the past six months in the United States on a monthly basis was created more than 200 thousand. Jobs. At the same time, according to the Bureau of Labor Statistics, more than 2 million college graduates over 25 years old are unemployed. Among workers aged 25-34, the unemployment rate is 6.6% - the highest rate among all age groups.

To find out which US cities provide the best conditions for young professionals, the magazine «Forbes» once again made its own rating - "Best US cities for young professionals." The study included 100 largest US statistical areas (large metropolitan area).

The estimation was made on seven criteria:

unemployment rate
The projected annual growth of jobs in the years 2014-2016, according to Moody's Investors Service and the Bureau of Labor Statistics
Number of small and medium-sized firms (less than 500 employees) per capita
The number of large firms per capita
The average salary of employees from 24 to 34 years, with a college degree (according to Payscale)
Cost of living index according to Moody's rating agency
The number of people aged over 25 who have a bachelor's degree or higher
Best US cities for young professionals
According to «Forbes»

At the top of the rankings, as well as three years ago, in the first study of the magazine «Forbes», Des Moines, Iowa, and Raleigh, North Carolina. In those cities, an impressive number of large companies and educated workers. In Des Moines, for every 612 people there is one large firm, and 41.7% of the population have at least a bachelor's degree.

Role is not the first time the magazine hits the ratings «Forbes» this year. Roles also took second place in the list of US cities with the highest growth rates. Business Park Research Triangle Park, where the units IBM, GlaxoSmithKline, Syngenta, Credit Suisse and Cisco, offers young professionals a wide range of jobs. In North Carolina are the best schools: Duke University in Durham, North Carolina State University in Raleigh and the University of North Carolina at Chapel Hill.

Omaha, Nebraska ranked third in the rankings, with the unemployment rate is only 4.1%. There are many large companies (1 in 810 people), as well as small and medium businesses (1 firm for 52 people). In Omaha, the hometown of the world's largest investor and businessman Warren Buffett, head offices are housed five companies of "Fortune 500" (a list of the 500 largest US industrial companies, published annually by the magazine "Fortune"). It giants such as Berkshire Hathaway, Union Pacific Corp., ConAgra Foods, Kiewit Corporation, and Mutual of Omaha. In Omaha also pays great attention to supporting young entrepreneurs and the development of "start-ups". Due to favorable proportions of medium and large businesses in the city is projected to increase the number of jobs by an average of 2.8% per year.

City of Omaha in Nebraska

In Omaha, Nebraska is very low unemployment - just 4.1%
While most cities in the list firmly hold its position more than a year, there are a few newcomers. District Boise-Nampa, Idaho for the first time made the list at once to seventh place with a cost of living index is 7% lower than the national average, and a large company for every 728 people. Provo-Orem County, Utah took eighth place, thanks to the lowest unemployment rate - 3.8%.

Towns central part of the country has a strong position in the ranking thanks to a sustainable economy, decent wages and low cost of living. Coastal cities were on the list due to high earnings, a large number of firms and educated workers, but the high cost of living did not allow them to climb high in the rankings. Center of Silicon Valley - San Jose, California ranked first in terms of wages (average salary of $ 89,600.), But only the eleventh place in the rankings, thanks to one of the highest in the country, the cost of living. Fairfield County, Connecticut climb a few positions and took twelfth place, due to the high number of educated professionals (44.6%) and a large number of small businesses (1 firm for 42 people). San Francisco, despite the large number of small firms (1 in every 46 people) and high wages (71 500 USD.), Takes the last place because of the highest costs of living.

The least expensive apartments in the famous New York City buildings

The Dakota, The San Remo, The River House, The Ansonia, One Sutton Place South and One Fifth Avenue - the world famous building in Manhattan, where many would dream to live. Apartments in them are worth tens of millions of dollars, but sometimes offered for sale objects for 1-2 million dollars. And even cheaper, writes The New York Times. This apartment is a smaller area, which occupies less prestigious location in a building with less beautiful view from the windows.

"If you're going to buy a small apartment in a certain building, you do not need to be rich as Croesus king" - said Frederick W. Peters, head of Warburg Realty.

Apartments <nobr> New York </ nobr> with views of Central Park

Most of all in New York valued apartment overlooking Central Park
The building The Dakota, where John Lennon lived, Yoko Ono, Leonard Bernstein, Judy Garland, Boris Karloff and Rudolf Nureyev, located at the intersection of Central Park West and 72th Street. It is worth noting that in this house was filmed "Rosemary's Baby." According to the degree of fame The New York Times The Dakota compares with Versailles and Buckingham Palace. Of the 102 apartments at the end of November for sale are available only two. One of them - an apartment with four bedrooms - worth $ 14.5 million. The least expensive condominium, exhibited here for sale - this duplex apartment with two bedrooms cost of $ 5,950,000. Over the past five years in the building The Dakota offers even more cheap objects - for $ 1.75 and $ 3.4 million. (both deals were concluded in 2013). Buyers 10-bedroom apartments and owners of two-bedroom apartments have the same access to the courtyard and can enjoy the unique atmosphere of the building The Dakota.

House of The Dakota <nobr> New York </ nobr>

December 8, 1980 in the arch of the house The Dakota, Mark Chapman shot John Lennon
To settle in another famous building, The San Remo, enough $ 4.4 million. At this price a year ago was bought apartment with two bedrooms and terraces. Recently was put on sale two bedroom apartment for 5.95 million dollars. Previously met even cheaper offer: 2.75 and $ 2.9 million. (Transactions were concluded in 2012 and 2009, respectively). Hall in The San Remo marble and mosaics, from the windows of apartments overlooking the Hudson River and Central Park. Monthly service charge for two-bedroom apartments is 3759 dollars.

"When you buy a small apartment in a building like The Dakota or The San Remo, you become the owner of a small piece of universal dreams and at the same time poured into the company of the rich and famous," - said Stuart M. SAFTA, a partner at Holland & Knight.

House of The San Remo <nobr> New York </ nobr>

Among the famous residents of The San Remo - Demi Moore, Steven Spielberg, Bruce Willis and Dustin Hoffman
The house One Sutton Place South in 2012 was sold apartment for $ 1.6 million., In 2014 - a house with two bedrooms with views of the East River for 2.5 million. The building The River House, where the norm is a bargain shall be calculated in double digits, and housing is rarely sold for less $ 10 million. in 2010, apartment was sold for 2.625 million in 2013 - over 3,325,000. The building One Fifth Avenue in the Art Deco style, where Keith Richards bought a penthouse with four Bedroom for $ 10.5 million. this year offers an apartment for 970 thousand. and 1,175,000 USD., and in 2009 was sold for 532.5 thousand housing. The studios in the building The Ansonia, built at the end of the XIX century, were sold cheaper 500 thousand.

"In an extremely expensive buildings for sale sometimes exhibit housing, worth up to 75% cheaper than the most expensive apartment in the building," - says John Burger, a member of Brown Harris Stevens. According to his observations, in a building 960 Fifth Avenue, where Edgar M. Bronfman penthouse broke the record of 70 million dollars., Occur less spacious apartment worth 5.3 million dollars. However, they advice cooperative (co-op board) has set strict limits funding: allowed to take the credit only if a minimum of 50% of equity.

New York housing for rent: it brings a stable income

The best places to buy
Realtors often advise investors to invest in areas where we expect any construction, they say, "be in the spotlight." For example, you can buy an apartment for rent east of the Upper East Side, where in 2016, is expected to open a new metro station.

It is necessary to pay attention to the ratio of cost per square meter and rent. For example, in the Harlem apartment worth 900 thousand. USD. For rent for 3500 USD. Per month, and in the Midtown East at the same price offered for rent apartment for 500 thousand. Dollars. Based on the rental rates, it is advantageous to buy housing on profitable 40-59 streets of Midtown East, as well as in the financial district.

Yield for apartments in New York is an average of 4-5% per annum. According to Douglas Elliman, rental of property in Manhattan costs an average of $ 3,902. As of May 2014. The apartment is worth 450 thousand. Dollars. One bedroom, located in Midtown, you can donate 2 $ 800. Per month, condominium 1 million. next to Central Park - 3 $ 500., loft worth 1.85 million dollars. Chelsea - 8 $ 150. per month.

According to Douglas Elliman, Manhattan apartments in buildings with doormen are 3725 dollars., No doorman - 2750 dollars. Lofts shall be the average for 5949 dollars., Luxury apartments (top 10%) - for 7950 USD., Apartment the super-class (top 5%) - 9 $ 950. New buildings are offered for rent for 4730 USD. per month.

While searching the area for rental to recommended to pay attention to the following:

Demographic situation. Favorable factors for investment are considered: predominance of women (they tend to be more sedentary than men), a high percentage of unmarried (they often rent apartments), the number of overweight young people and pensioners over the number of middle-aged people (the latter tend to acquire its own housing). Get information on the demographic situation in New York, you can use sites City-Data.Com and NeighborhoodScout.Com.
Earnings population. High monthly income refers to the good solvency of potential tenants. Most "rich" areas of New York - Lenox Hill, Union Square North, Flatiron, Carnegie Hill and TriBeCa (an average of over 300 thousand. USD. Per year per household).
The presence of educational institutions. If there are universities, that is, students who will be looking for a place to live off campus. If you focus on student tenants, choose a house in Noho and Nolite, which is located near the University of New York, or to the north of Central Park, where the Columbia University and City College of New York.
The presence of companies and businesses whose employees can take the apartment. Stability and profitability of the companies that are major employers, is a significant factor. For example, a highly sought after apartments in the financial district (Wall Street).
Transport links. Should choose a place with excellent transport links to the city center. These include Battery Park City, Financial District, Midtown West, and SoHo Tribeca. In addition, look for apartments in buildings near the metro stations.
Availability of infrastructure and recreation (parks, cinemas, theaters, sports facilities), as well as shops. Determine the distance to the nearest shops and cafes, you can use the site WalkScore.Com, and Google Maps. According to New York Magazine, many shops in the areas of Nolita, Little Italy, Midtown, East Village and Dumbo. Restaurants are rich in Nolita, Little Italy, West Village and Meatpacking District. "Green" areas considered Brighton Beach, Inwood, West Village, Meatpacking District, Upper West Side and Brooklyn Heights. The best places for nightlife - East Village and Lower East Side.
Reputation district. About this, read the article "Real Estate in New York and the surrounding area where Russian immigrants to settle." Among the safest areas - New Dorp, Tribeca and Brooklyn Heights.
How to choose the right property?
The cost of housing for rent in New York begins at about 500 thousand. Dollars. Investors have a choice - buy an apartment house or an apartment. You can, for example, bought for 700 thousand. USD. Small apartment building in Brooklyn, Bushwick, or (at the same price) condo in Midtown. In the case of apartment house yields may be higher, but will require increased cost for maintenance and more time managing.

Most resistant to fluctuations in the economy are considered the building class B, built 10-20 years ago and are in good condition. They are located in prime locations and populated middle class. The house is still quite new and equipped with high comfort elements, but they are available for average investors and tenants. New Class A building with swimming pools and gyms more sensitive than others to respond to fluctuations in the economy.

When buying the apartment building you need to pay attention to the presence of a number of parking, equipped including for people with disabilities. Fence area, lockable gate, alarm system and surveillance cameras - all this creates the residents feeling of safety and security, and allows homeowners to raise rents. A significant role is also played by neutral decoration of apartments and views.

When choosing an apartment renters pay attention, especially not on the area, and on the number of bedrooms, so buy a house with several small bedrooms, and not with one large bedroom. According NakedApartments.Som, the greatest demand in New York are two-bedroom apartments: 38% of users are looking for just such a removable housing. Most often, such objects are interested in Brooklyn and Queens: 43 and 42% of the total number of requests for each area respectively.

Miami real estate: prices are rising WITH SALES

As reported by the Miami Association of Realtors State in the third quarter of 2014 continued growth in sales of condominiums and houses. For example, in October the number of real estate purchases increased compared to the same period last year to 13.5%, while the growth in accounts for condominiums.

Growth in demand affects the price, the average cost of a family home has increased to 250 thousand dollars, which is higher than the figure for the previous period by 8.7%. The average selling price of condominiums reached 189 thousand dollars, an increase of 3.5%. According to the association, even if such housing prices, there is a tendency to an increase in demand.