New York — Buying real estate or property in New York city means you should learn about all the most important neighborhoods, districts, and suburbs in the city. New York City is one of the biggest metropolises in the world, and you’ll find that understanding the real estate market is vital to make good investments in real estate at the right time. Our easy guide takes you through New York’s most important facts, and what you have to know about the best neighborhoods for real estate and property investment in NYC.
New York: Many Cities in One
Buying New York Real Estate is a challenge, and we help you with the most important information about where and how to buy here. New York City has 5 boroughs: Bronx, Brooklyn, Manhattan, Queens und Staten Island. Manhattan itself is an island divided into numerous neighborhoods, so-called Neighborhoods. The Bronx is located on the mainland, north of Manhattan, Queens and Brooklyn on the western tip of Long Island. While Staten island is an island separate from the others. The five boroughs are connected by numerous bridges, ferries and tunnels, so it’s possible to get almost everywhere by subway. Each has their own unique style, and is famous for different things. It’s no wonder more and more people are buying an apartment in New York or buying a house in New York.
What makes NYC Unique – Not Just good Property Investment
More than 8 million people live in New York, in a total area of 1,214.4 square kilometers. Countless galleries, museums, theaters, parks, restaurants and sights attract around 50 million visitors annually. A cultural melting pot, over 800 languages are spoken, and you can find food from almost every place on earth. In addition, New York is one of the most important trading cities in the world. In addition to the stock exchange, many international corporations have their headquarters here, forming an important economic area. Being one of the world’s financial centers, investing is a large market. Read more about investing in New York.
Geographic Explanation – Different Cultures in NYC
One example is the Bronx, New York’s northernmost district. There you will find for example Yankee Stadium, Bronx Zoo, Woodlawn Cemetery, Little Italy and the New York Botanical Garden. Today, in addition to apartment buildings and social housing, there are also residential districts of the middle class in the Bronx. Like no other district in New York, immigrants from Central and South America, Africa and Kosovo have shaped the cityscape. This is in contrast to Manhattan’s wall street and businessman lifestyle, or Brooklyn’s art and student scene. New York City offers many things for diverse groups of people, among others being strong investment opportunities.
Investing in the Big Apple
Manhattan, Upper East Side, Midtown & Co. Buying luxury real estate in New York requires local market knowledge. Especially in times of low interest rates it is worthwhile to invest in a good property, whether in New York, Los Angeles, Miami or even cities like Chicago. From New York property taxes, to the small 50-80 sqm condominium to the spacious private property with up to 1,800 sqm of land. We track down the properties that offer the greatest return and the greatest possible luxury and comfort for you. Back to: Luxury realtor + properties.
New York from the Sky
Below a video showcasing the dramatic skyline of New York with a drone flight taking you between the skyscrapers.
Real Estate Investment: Now is the Time
New York needs no introduction. The big apple is one of the biggest tourism destinations, art powerhouses, financial and population centers, and much much more. The districts which are important to know for investments are mostly in Brooklyn, where a combination of gentrification, low prices, and an attractive atmosphere make living increasingly more attractive. Just taking a short look at Williamsburg shows everything you need to know. Not to forget as demanding attention, Bushwick, Bedford-Stuyvesant and Flatbush. Buying an apartment in New York‘s hippest areas is bound to be a challenge.
Strong Economy Means Smart Investment
In regards to economic developments, New York is seeing a surge. Recently, many top companies from digital sectors have moved headquarters or opened offices in the city. This means increased investments in multiple sectors, as well as increased demand for rentals in the inner city. The general real estate market has weakened over recent times, meaning the classic investments of earlier years like TriBeCa or Soho where high square meter prices dominate, are currently clever investments. The market is likely to recover, and these parts are unlikely to become unpopular.
Buy or Rent?
So you’re looking at real estate in New York, what do you have to know? First, it depends on where and how long. If you’re looking at the downtown core, like Manhattan, it’s near-impossible to buy, and rent is comparatively cheap. In up-and-coming neighbourhoods like Chelsea, or even better Bushwick, you’re well-taken care of to buy. Buying in Bushwick carries the same financial load as renting for three and a half years. So, if you want to go straight to the core, in Manhattan, SoHo or TriBeCa, hesitate with a purchase, while places like Brooklyn, with comparatively high rent prices are the places to buy.
What are the Prices Like?
Properties are becoming increasingly large. This is acccompanied by an increase in purchases of properties valued at more than $1 mil. In New York, real estate is all about location though, with Manhattan. On average throughout all of New York City, one-bedroom apartments can be had for $2.810/month, or two-bedroom apartments at $3.576/month. In e.g. East Brooklyn, the average rent is at $1.250/month, demonstrating the large gap. The prices for apartments below:
- Median price: $916.000
- Average per square meter: $7.244/m²
New York Taxes
New York, like every state has its own tax system. It’s complicated, and the most you can do is try to understand it. We have a short summary below of New York real estate taxes.
Interested in property taxes in New York? Our full article on the matter should be interesting to you:
New York Property Tax Explained
In New York, property tax is quite high compared to other states. In New York State, property taxes change from year to year, depending on the needs of the state. Additionally, it is also complicated by the fact that tax rates are constructed in millage rates as opposed to tax rates
Mill Rates are Tax Rates
Millage rates serve the same purpose and work quite similarly to conventional property tax rates. A millage rate, is first and foremost a number. This number indicates the amount of property tax a property owner is required to pay for their property. A mill rate of 1 indicates 1$ of tax for $1.000 worth of property, a mill rate of 24 indicates $24 of tax per $1.000 worth of property.
- Mill Rate of 1 indicates 1$ of tax for $1.000 worth of property
Residential Assessment Ratios
Sounds complicated, but if you’re looking into buying real estate in New York, you have to know what RAR’s are. RAR’s are a method by which the state accounts for fluctuations in the real estate market. You can challenge the assessment given to you via the RAR when you believe you property is worth 10% less than the assessment. By law, the equalization rates are used to divide taxes in tax zones that cross municipal boundaries. These tax jurisdictions can be school districts or the county.
- RAR is a ratio determining the assessment of your home
Too Much Property Taxes on your Home?
As always, there is an assessment on the value of your home. To calculate the property taxes you have to pay, you would usually calculate your property tax by multiplying this by the tax rate of your county. In New York state, you receive an approximate value which you multiply by the Residential Assessment Ratio. This gives you a value on your property, based on which you will pay your property tax.
Estimated Value = Assessment Value x RAR
Buying Property: Mansion Tax
When buying a property in New York city, you may be subject to the “mansion tax”, beginning with an extra rate of 1% when buying properties worth more than $1.000.000. This tax is intended to provide the state more funding from high earners or those with more capital. This tax, unlike property transfer tax, is paid by the buyer. For this reason it is also a staggered tax, with higher property prices incurring higher rates. These rates are from 1% up to 3.9% depending on the value of the property. Below the mansion tax rates, depending on the amount the property is bought for.
- 1.00% – $1.000.00 < $1.999.999
- 1.25% – $2,000,000 < $2,999,999
- 1.50% – $3,000,000 < $4,999,999
- 2.25% – $5,000,000 < $9,999,999
- 3.25% – $10,000,000 < $14,999,999
- 3.50% – $15,000,000 < $19,999,999
- 3.75% – $20,000,000 < $24,999,999
- 3.90% – $25,000,000 or more
Mansion tax is just one of the taxes you have to pay when buying real estate. Learn more in our article on Taxes You Pay when Buying a Property.
Neighborhoods for Real Estate Investment – SoHo, Williamsburg, TriBeCa
There are too many neighborhoods to remember. Here we present the most important, hottest, and up-and-coming neighborhoods to keep in mind. If you’re looking to buy real estate in New York, these are where to look. They are home to some of the most interesting and luxurious real estate in North America, read more New York Luxury Real Estate.
- East Village
- Park Slope
- Greenwich Village
Once a paradise for hippies and the punk movement. Without losing its artistic touch, the East Village is now home to many boutiques and restaurants. Among those who have lived here: Madonna, Lady Gaga, Lou Reed, Iggy Pop. The East Village covers the area east of 3rd Avenue and Bowery to the East River, between 14th Street and Houston Street.
SoHo represents what many people first think of when they hear New York. A chic neighborhood full of art galleries, boutiques, restaurants and bars. SoHo is a shopping and nightlife district, but also one of the safest neighborhoods. This is also a hotspot for movie productions and film stars!
Park Slope is the definition of a well-rounded neighborhood. It is blessed with excellent public schools, low crime rates, extensive green spaces, diverse shoping opportunities, and a population with more artists and creative people than even Williamsburg (see below), along with high-end restaurants and bars, and Prospect Park, one of New York’s most beloved and famous parks.
Williamsburg, the birthplace of hipsters, and current home to many artists and personalities.Besides small stores you will find many interesting art galleries and street markets, along with many cafes and cozy bars where you can try local beers, combined with ever-improving public transportation connections to nearby Manhattan. Williamsburg presents the alternative side of New York and it is quite refreshing.
Greenwich Village (or simply “The Village”) is the part of NYC where everything is a little different and quirky. The residents are mostly students and the young working class. The neighborhood also offers some of the best private schools in the city, high-end restaurants, shopping malls, and is an entertainment center. The streets in the Village are not geometrically organized like in most parts of New York, which makes it feel like a real village.
Chelsea is one of the hippest neighborhoods in New York, offering many cool art galleries, classy boutiques and even classier restaurants, which attract especially a young audience. Chelsea is especially popular with writers, painters and actors. The area has very good public schools, large health and fitness facilities and a vibrant nightlife and many outdoor activities and transportation. The optimal place to settle down with families as the neighbor’s safety is quite high and the crime rate is low.
According to Forbes magazine, TriBeCa is the most expensive neighborhood in New York and home to stars like Beyonce and Jay Z, Justin Timberlake and Leonardo DiCaprio. It is not surprising that you will find many luxurious stores and restaurants here such as at the exclusive Tribeca Grill. In general you should have enough money with you when you visit TriBeCa.
More Popular New York Neighborhoods
There are more neighborhoods, which may not be the first places to think of, but which still have a strong personality and much to offer. These include Bedford-Stuyvesant, one of the most up-and-coming neighborhoods in all of New York, Flatiron, home of Jeff Bezos’ $80 million apartment, or the Upper West Side, setting of a West Side Story.
- Sunset Park
- Battery Park & Financial District
- New Dorp
- West Village
- Sunny Side
- Jackson Heights
- Bedford Park
- Brighton Beach
- Upper East Side
- Morningside Heights
- Carroll Gardens
- Corona Park
- Co-op City
- Upper West Side
- Bay Ridge
- St. George
- Fort Greene
- Flatiron & Gramercy
- Red Hook
- Sheepshead Bay
- Washington Heights
- Cobble Hill & Boerum Hill
- Nolita & Little Italy
Special – Buy Apartment New York
New York, the city of dreams. You too can live your dream of owning real estate, and that in one of the top cities worldwide in everything from fashion to finance to art and food. Buying an apartment in New York certainly isn’t the easiest of tasks, but one that is likely to leave you happy you took the risk. But! New York has a complicated real estate system as everyone knows. Buying an apartment here means many different things than it does in other parts of the U.S.A.
We take care of all questions you could have in our full guide on buying an apartment in New York