Saturday, December 4, 2010

Risks, disadvantages, problems Manhattan New York property

Here are the downsides - risks, disadvantages, concerns, problems - associated with owning property in Manhattan, New York.

1.  Tying up capital, at least $150K for an entry level studio to millions for buildings.

2.  Don't expect to flip in 2 years.  Manhattan doesn't appreciate 30-40% per year.  It's not an emerging market.  You should expect to hold for 5 years.

3.  Vacancy is expensive because of carrying cost, repainting and repairing this and that, broker fees associated with re-marketing.

4.  Get a good tenant by doing the proper reference checks.  In New York City, eviction will be time consuming and expensive.

Our website Castle Avenue Partners, Manhattan investment property

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