Budapest Property prices offer value for savvy investors

Whilst Budapest is known as the ‘Paris of the East’, comparable high-end properties in Budapest are actually a fifth or less of the cost of those in Paris, or indeed in London.

Budapest is without doubt one of the world’s most stunning cities. Investment and restoration in the city is continuous; its historical treasures are constantly being refurbished and renewed, whilst new world-class buildings are springing up each year.

There are many good reasons why to invest in properties in Budapest. Here I list just a few, but I will be back with more in my next article.

The Hungarian government is committed to massive infrastructure projects throughout Budapest and Hungary – a new fourth Metro line is currently being constructed, as are three new bridges over the Danube and a new government quarter on a 30-hectare (roughly the size of 72 football pitches) site in central Budapest. Investment is piling into this great city, and specifically into new public and private construction projects, at an unprecedented rate.

In addition to the huge amounts currently being invested into Budapest the EU  announced in September 2007 that it will invest €25 Billion in Hungary over the next 6 years. This massive EU investment will drive Hungary’s economic growth and it is expected that the Budapest property market is likely to experience a sharp, short-term boost as a result. Over the long term, even conservative estimates see the local property market rising 15% per annum throughout the next ten years, making Budapest property a low-risk and profitable investment.

For over a decade international Blue Chip companies have made a beeline for Budapest. The city’s strategic geographical location makes it the ideal gateway to Southern and Eastern Europe, and multinational companies continue to invest heavily in Budapest, as the city serves as an ideal regional HQ.

Why so? Well it’s not difficult to get the expatriates, which are key to the success of a new operation in a foreign country, to move to Budapest. I have lived in Budapest for over six years now and I find that expats simply love to live in Budapest. The locals are very well educated too, and international companies find that operations in Budapest are far more cost effective than where they have come from. The Exxon mobile service centre which moved hundreds of jobs from London to Budapest is a prime example.

A good example of a Budapest property “hot spot” is a large chunk District 13. One of the main reasons why this part of Budapest has grown into and can now be described as a hot spot is the development of Vaci Street as an office corridor. Many class A office buildings have been built and are under construction, and they house many household names of the Blue chip international company variety. Companies such as General Electric, Ernst and Young, KPMG, Diageo, Exxon mobile, and Sab Miller, occupy huge amounts of office space. They are heavily invested in Hungary and employee thousands of well qualified, professional locals in offices situated on this stretch of road. This has a positive impact on the rental market in the areas either side of Vaci Street. Also it has and will continue to stimulate demand for home ownership as Hungarians have a property ownership mentality and will usually buy when they can afford to do so.

Real estate foreclosures or bank owned properties are one of the top categories in the foreclosures real estate market. If you are searching for an opportunity to break into the real estate industry or smartly invest your money, then you can definitely consider purchasing real estate foreclosures.

The foremost reason when saying that buying real estate foreclosures makes smart investments is the fact that nearly all of the foreclosure properties are sold at prices way below the market value. The discounts may vary from 10 to 50% of the properties original prices. As an individual, real estate foreclosures could be your chance to find your dream house within your budget. As an investor, foreclosures real estate market is undeniably a very lucrative opportunity, for short term as well as for long term investments.

The first step in investing in real estate foreclosures is understanding how this long and complex process works. Patience and vigilance are the key qualities of a smart investor. You need patience because buying real estate foreclosures does not happen over night. In most cases, it takes several months to complete the purchase of a foreclosure property. And if you don’t rush things out, maybe you even get a better price. You need to be vigilant and agile so that to spot the best deals and be prepared to sign an agreement and place a down payment.

A smart investment is always about doing your homework in advance. Therefore, research is a very important part of the real estate foreclosures purchasing process. You can do research by visiting real estate dedicated websites and consulting their foreclosure listings. The perfect start point is E-ForeclosueSearch.com, an industry expert providing quality foreclosure homes listings and comprehensive know-how services that professionals and savvy investors demand. Their huge database contains over 500,000 listings of bank foreclosures, government foreclosures, HUD homes, VA homes, real estate auctions, foreclosure homes, distressed homes and fixer-uppers, and particularly Fannie Mae homes.

Fannie Mae is a federal agency that purchases real estate foreclosures from banks and sells them to consumers at a considerable discount. Again, the best source of information is E-ForeclosueSearch.com, which provides convenient listings of Fannie Mae homes and additional help, in case it is needed, to locate Fannie Mae homes. This particular type of properties on the foreclosures real estate market is alluring due to the exceptional financing requirements. The amount needed for down payment in order to buy a Fannie Mae property is of three to five percent of the purchase price. You should investigate the home thoroughly before you make an offer to buy the home because Fannie Mae properties are sold in “as is” condition. Usually, Fannie Mae agency repairs the home but those repairs are not guaranteed.

As a general rule, when purchasing real estate foreclosures, a $1000 deposit is usually expected, and the potential customer must be able to provide the proof that he has the additional funds considered necessary to pay off the amount owed on the home. The payment required initially depends on two things, the owner of the property and the value of the property. Some banks require a minimum payment of $500, or at least 10% of the amount of your offer. In the case of real estate foreclosures, since the bank owns these properties, you have the opportunity to negotiate unique and flexible sales agreement. So, it’s high time you prove how good a negotiator you can be.

As shown by International Living’s recognition of Panama for six straight years as the top location in the world for retirees, many have come to view Panama as the perfect location to relocate. This is not only true for retirees but for families and investors looking for the best place to spend their money. Panama has many of the same features as the US and Europe but without the political problems and stressful lifestyle. In addition, Panama’s weather and wildlife are absolutely incredible, and the cost of ownership for Panamanian real estate is far below anything found in North America.

Panama is geographically superior to most of its Central American neighbors. Below the hurricane belt, Panama is not affected by the annual hurricane season. Panama is bounded on south by the Pacific Ocean, the north by the Caribbean Sea, the east by Columbia and the west by Costa Rica. The country has 1,600 miles of ocean coastline, a ridge of extinct volcanic mountains that make up its backbone. The weather varies depending on where you are in the country and this diversity only enhances the variety offerings in Panama’s real estate.

Though a small country, Panama is brimming with properties for investment and relocation. The face of Panama City is changing as the construction boom continues and communities continue to pop up throughout the country. People who are drawn to Panama are impressed by the stress-free lifestyle, the beautiful surroundings and the incredible values they have found for real estate. Regardless of what they seek, Panama real estate is home to many great deals with prices being well below the rates in Europe or the US.

In addition, it is estimated that 14% of Panamanians speak English which makes the transition from the US, Canada or Europe much easier. The big differences between Panama and these other countries, however, are in real estate. Panama real estate is much more affordable than that in North America or most other places in the world.

Panama real estate offers a wide range of living and investment options. Panama City is alive with real estate opportunities; houses, condos, townhouses and apartments are being built so rapidly that the skyline of the city seems to change almost daily. Throughout the country’s nine provinces you can find great real estate possibilities. From the Darien province on the Columbian border to the Chiriquí province on the Costa Rican border, Panama real estate is home to many great deals with prices being well below the rates in Europe or the US.

What weather do you like? Do you prefer the mountain air or a sultry, tropical climate? Either way, you can find what you seek in Panama. If you are looking for investment beachfront property or even luxury condos, Panama is still your destination for affordable investment options. All of the natural beauty is at your fingertips along with the promise of a laid-back lifestyle. Those searching for a great real estate value will agree that Panama offers everything they desire and more. Now is the time to go after that property you seek and the place to go is Panama!

Article from: http://www.uos-hp.com

Is it possible to buy real estate with no money down? Well, you can’t stop holding your breath because its true. You really can buy real estate without putting down a penny but you should know what you’re doing before you get into it. There are pros and cons to purchasing your home this way. Be aware of what those pros and cons are so that you can buy real estate with no money down and no problems in the future.

Here is your guide to buying real estate with no money down:

• Borrowing money for a down payment is one of the most common methods of purchasing property with no money down. If you’re going to take this approach, you should make sure that you get a good loan with an interest rate that isn’t excessive. A line of credit or a home equity loan may be alternative options to a standard loan.

• Consider leasing until you buy. This is not a common real estate practice but it is something that can be done. The way it works is to lease the property with an option to buy during a set period of time. Negotiate a deal in which the money you’re putting towards the lease each month is considered the down payment on the purchase.

• Be firm in negotiations. It really is possible to just go in to the negotiation of the sale of your home intent on making “no down payment” a part of the plan. If you’re willing to concede to the seller on other points, you might be able to win out on this one. This is especially true if it’s a buyer’s market and the seller’s in a bind or if you’re willing to outbid others on the actual price of the property in order to negate the down payment.

• Know the legalities. There are certain no-money-down practices in real estate purchase that are common but are actually illegal. For example, sometimes the buyer will put down the down payment but then immediately get it back from the seller without disclosing the transaction. Appealing, but illegal.

• Realize that if it sounds too good to be true, it’s probably too good to be true. There are a lot of scams out there for convincing buyers to consider no payment down real estate purchases. There are very legitimate ways to do this but you need to do your research and not just jump on the first chance that passes you by. Look carefully at all of the real estate purchase terms and the reasons that the property might be offered with no down payment. In other words, go into the deal with open eyes and a sound mind.

• Consult a professional. Work with a real estate agent or get the advice of a real estate attorney so that you can be sure that the legalities are all covered and the deal is a good one.”

Article from: http://www.uos-hp.com

There is nothing like building your dream home. The process starts years before you are actually ready to build. Each home you live in has a little something you love and want to keep and many things you would change if you had the chance. Each time you leaf through design magazines or visit a design home you come ways with new ideas about how the perfect home would look. For some, it might be a bigger better version of the home where they grew-up; others envision a completely different home with every modern convenience and innovation on the market. As going green becomes more and more popular, many people are exploring Energy Star options. In our neighborhood, many families are tearing down existing houses and creating dream homes that blend into the area but have all the bells and whistles. Maybe your dream home site is perched on a cliff overlooking the ocean, perhaps a cozy nest in the forest, or a grand post and beam structure in the woods is more to your liking. Looking to build your dream home with custom details? Update your current home to meet your changing needs? Want access to the latest trends in home planning and materials? Whatever you dream home, the real work starts with a precise set of drawings.

Highly qualified and professional drawing services will consult with you to be sure that the project meets your expectations. Using the latest drafting technology, they help you visualize your home using 3-D computer imaging software, allowing decisions to be made according to what will work best for you. Finding a drawing services run by a highly trained staff with years of experience in drafting and building is a must. Having a set of prepared drawings eliminates confusion and reduces cost by facilitating more accurate estimates and eases the permit process.

The process starts with a consultation and site visit. The project is discussed and outlined. After the preliminary drawings are presented and reviewed, they are finalized and the final layout is approved. The construction drawings are then laid out with a complete set of working drawings and a list of materials needed. The plans are then sent out, reviewed and stamped by the local official. Discover for yourself the professionals who you can best work. Find a drawing service that can translate your dream into a reality.

Is island life for you? Or is having an island getaway for you? Both questions would entail completely different lists of pros and cons. For investment purposes, island homes tend to hold their value, as land is obviously at a premium on an island!

The population of USA has access to many islands, in the Atlantic, the Caribbean, the US Virgin Islands and in the Pacific. If you are planning to buy a second home on an island, you will not need to do the same soul-searching that would be required for a permanent move.

Many families have bought an island cabin as a group purchase, and the weekends and vacations are allotted on a casual ‘time share’ basis within the family. It is shared in turn for weekend getaways where the children can roam free on weekends and vacations and every now and again they will all plan to show up together! It is a great idea for promoting family unity. It also keeps costs down, as boats, fishing rods, repairs etc can be shared.

However, that is a little different to suddenly deciding to sell everything up and move to an island. To some, that would sound idyllic and to others it may bring on claustrophobia!!

The advantages and pitfalls must differ according to each island’s amenities, climate, environment and many other factors, but are there any general island ‘rules’?

Most island residents who choose permanency would probably opt for an island with a ferry service. There are times when the sea is too rough for a little row boat, or motor boat, and they do not want to feel isolated. Of course, for many people this isolation is exactly what they DO want!

Sometimes a ferry schedule can mean that when you arrive home late (from a vacation flight) or from the theater you cannot make it home on the ferry. Many islands have a water taxi service that you can pre-book, or some residents will just use their own boat, and others will decide ahead to spend a night in the town’s hotel.

One other problem with living on an island is that often you may have to worry where to park your car. Is the island big enough to have a car ferry, or do you need to leave your car each time you go over on a tiny ferry? In the latter case, you will need to negotiate parking near the ferry – although this is often provided for.

Such other inconveniences, like arriving home with no sugar, is really just an accepted part of island life, and easily adjusted to. That’s what neighbors are for, and community glue is strong on islands!

No matter what the inconveniences are, to islanders, the peace and the feeling of being ‘away from it all’ is paramount. If you work off island, it only takes a few short weeks for that feeling of peace to pervade your entire being. It happens the minute you step onto that ferry boat each evening to cross the ocean to your island home.

Perhaps this poem by J. Earnhart and reproduced in the magazine “Island Life”, sums it up best

:If ever you’ve lived on an island
if ever you’ve lived by the sea;
You’ll never return to the mainland
once your spirit has been set free.

If ever you’ve smelled the ocean
or tasted the salt in the air;
You’ll know you’ve discovered a haven
that is uncommon, precious and rare.

If ever you’ve seen the whales play
or watched the eagles in flight;
You’ll remember, again, why you live here
and why it feels so right.

If ever you’ve seen the sunset
as the ferry passed the shore;
You’ve seen the beauty of the island
that will be with you forever more.

If ever you’ve heard the seagulls
the waves, a foghorn, the winds;
Then you’ve heard the song of the island
and the peaceful message it sends.

Indeed, if you live on an island
if you’re lucky to live by the sea;
You’ll never return to the mainland
as your spirit has been set free.

Des Res was once voted one of the nicest words in the english language. There are many reason for this. In the property market estate agents, especially in the west end have a way of conjuring up a great word to describe a property without breaking the rules of trade description. Des Res [ déz réz ] (plural des reses) means superior house: a house or flat that is considered, especially by an estate agent, as highly desirable and obviously the shortening of desirable residence.

Today newpapers often use the word to describe a broken down garage which sold for $500.000 dollars i.e. garage des res for sale only $500,000. Some entrepreneurs in Stoke UK purchased an old water tower and againt the odds turned it in to des res apartments, by all accounts they attracted some very good prices for their entrenprerneurship.

What are the most expensive des reses? well For $US165 million ($A192 million) a Californian mansion that once belonged to publishing magnate Mr Randolph Hearst and featured in the film The Godfather could be yours.

It boasts three pools, around 29 bedrooms, a movie theatre, a disco and separate residence for the security staff. truly the most expensive mansion in the world. The asking price surpassed the $US155 million ($A180.47 million) being sought by developers of a 10-bedroom estate in Montana’s Big Sky country, and the $US135 million ($A157 million) price of an Aspen, Colorado, compound owned by Saudi Prince Bandar bin Sultan, former ambassador to the United States. Lovely des reses indeed!

Remarkably a flat (apartment in the USA) could surpass this. Although they won’t be ready until 2009-2010, there has been incredible interest, and several have already been sold off plan. Clients for the flats, some who are bilionaires, are expected to include Arab princes and Russian oligarchs.

Recently it was rumoured a flat had sold for $168 million dollars. The flats start at $8 million. There are 4 penthouse flats in the complex; those are the ones rumoured to be selling for $168 million. They will also have the street number/address “1 Hyde Park”- I’m pretty sure that alone massively added to the value of the price tag.

With an apartment building investment strategy, it is possible to make a very large profit from one deal. It does, however, require a lot of work and possibly a few years to complete.

If you know what you are doing, buying, improving, and then selling an apartment building can be one of the surest ways to make a large profit in real estate. Why? The size of the investment helps. Making a 10% profit on a million-dollar property is more profitable than on a $100,000 house. But it isn’t just the size of the deal.

Selling an apartment building isn’t like selling a house. For example, if you paint a house, you’ll get a little more for it because it looks nice. But you are just guessing at how much value that painting adds. What if you chose a color that isn’t popular? How much does a deck raise the value of a house? This is not an easy question to answer.

There is a more predictable formula for raising the value of an apartment building or complex. This is because the buyers are investors, who look at income more than new paint. The formula is simple: raise net income, and you increase value.

For example, suppose investors in your area expect a capitalization rate of .08. That means that they expect a net return (before loan payments) of 8% on the purchase price. If your thirty-unit apartment building generates $120,000 net income annually, they’ll value it around $1,500,000 ($120,000 divided by .08). If you can get it to generate $160,000, it will be worth $2,000,000.

The strategy then is simple (but perhaps not easy). You find an apartment building that is not being operated efficiently, buy it at a good price, increase its net income, and resell it for a profit. If the increase in income is predictable, the increase in value is.

An Apartment Building Investment Example

Suppose you find a 40-unit apartment building for sale. They are all 2-bedroom units renting for an average of $600, which is below the $675 average for the area. The vacancy rate has been at 10% for the last year, above the 3% rate that is more common for the area. You decide that this is because the place is a bit run-down, and the management company isn’t very quick about getting new tenants in.

There is a community room that is dirty and generally unused. There are no laundry machines, so tenants have to go eight blocks to the laundromat. There are only a couple places that rent this cheap in town, and there are many that get $750 or more for two bedroom apartments. You can see that there is potential for improvement and higher rents here.

The gross income for the previous year was $259,000, and all expenses other than loan payments, came to $75,000. That makes the net income before debt service $184,000. Based on the prevailing cap rate in the area of .08, the value is around $2,300,000. ($184,000 divided by .08). You have been shopping not just for apartment buildings, though, but also for motivated sellers. This seller is only asking $2,000,000, and accepts your offer of $1,850,000.

The first thing you do – before you even close on the deal – is make a list of every possible way to reduce the expenses and increase the income. As soon as you close the deal, you go to work.

Cleaning the property up and doing some minor landscaping costs just $1,000 or so. You have $2,000 worth of painting done as well.

The community room is cleaned up, and you install video games for the kids. They are provided by a amusement company at no cost to you, and you get half of the income.

The other side of the community room becomes a laundry room. Again, you opt for an arrangement that gives you half of the income without any investment in machines on your part. It does cost you $9,000 to have the room plumbed and wired for the washers and dryers, however.
You allow a beverage company to put a pop machine in the community room for 40% of the gross income.

You spend $13,000 for ten small storage sheds and rent them out to tenants for $35 per month.

You spend $52,000 for several carports that will provide one space for each tenant.

You replace every outdoor light with low-watt fluorescent bulbs, for a few hundred dollars.

You replace the inefficient heater for the hallways with one that will cut your gas bill by 30%. It costs you $6,500.

You add fire extinguishers and make other minor changes to get a better insurance rate. This cost a few thousand dollars.

You fire the management company and hire a better one for the same rate.

Tenants are surveyed and repairs and improvement are made as needed or desired by tenants. This costs another $32,000.

The tenants, of course, were told there would be improvements. They were also notified that a rent increase was necessary to pay for these, but that rent would be close to that of similar apartment buildings. As the leases are up, you increase rents. You simultaneously start promoting the building as one of the nicest in the area, to fill those empty apartments.

By the following year most of the apartments are renting for $700. With the notice of the rent increase sent to tenants, you included an information sheet showing the rates at other apartment buildings, emphasizing the ones that were charging $750 or more. Only a few tenants leave because of the higher rent. All of the tenants have a nicer place to live. Moving is a lot of trouble and expense just to go to a place that is not as nice in order to save maybe $50 per month.

You keep the place for another year before trying to sell it. This is so that all of the changes in income and expenses will be fully reflected in the books for a full year. Your improvements cost around $120,000. Add this to the original purchase price and closing costs, and you have right around 2 million dollars into the project.

What does that net income look like now?

Your new and improved apartment building is now 98% occupied. With rent averaging $700 per month per unit, the total gross income from rent for the previous year was $329,000.

Your share of the laundry machine income was $2,400.

The storage sheds were mostly occupied, and brought in $3,800.

The income from the video games and pop machine in the community room was $1800.

Total gross income, then, is $337,000.

With the new heater and other changes, you reduced annual expenses to $65,000.
That makes the net income before debt service $272,000.

At a .08 cap rate, the value of the apartment building is now about 3.4 million dollars. Because it is in such perfect shape, however, you list it for sale at 3.7 million dollars, and by the end of the third year it sells for 3,500,000. Sale’s commission and closing costs total almost $200,000. Since you had about 2,000,000 into the property, you have a profit of 1.3 million dollars.

Even if you (or your partners) invested $500,000 originally, that’s a great return for three years. It is also a taxable capital gain, unless you roll it into the next bigger project. Another alternative is to keep the property, now that it is probably (depending on the terms of the financing) generating cash flow after debt service of about $172,000 per year. That’s not a bad return either.

The most important point of this apartment building investment strategy is that you make changes that raise the net income. To make the most efficient changes, you have to learn how to do the math. However, that is a subject for another article.

When it comes to selling commercial real estate, there are certain procedures that should be followed and some considerations that keep in mind prior to placing the property on the market. A careful consideration of these procedures will result in a much better outcome when the property is sold.

One of the things that should be done is to prepare an apartment analysis form to give to potential buyers. This shows them in writing what they can expect from their apartment building investing venture. This analysis will also keep the asking price from being lowered as you have given concrete evidence about the value of the building that will be heeded by those interested in apartment investing.

Some of the other considerations are determining whether you are willing to give a second mortgage, and whether you have investigated the market and know what the interest rates are for commercial properties of this caliber. By doing this, you can decide how much you will charge and at what interest rate. This can bring in potential buyers who may not have been able to begin apartment investing in your property otherwise.

Determine which websites, newspapers or periodicals are best for advertising in the area and will bring in a pool of potential buyers that can meet your price. Attracting someone interested in apartment building investing, and able to do it, is the main goal, rather than attracting a greater number of hopefuls who will not be able to afford apartment investing. With an advertisement placed in the proper places, the property will reach the right apartment-investing buyers, keeping it from sitting idly on the market and driving the price down. The Internet has become a way for many people to look into the commercial real estate market, and it can be a good place to list a commercial real estate property for quick results if the proper websites are used.

All of these steps are important in order to bring the right apartment building investing buyers to you. This will allow you to sell your commercial real estate at the price its worth on the market. Being educated in the proper advertising placement, whether you might consider a second mortgage, and at what interest rate you will be willing to do this, will allow you to answer questions from those interested in apartment building investing. Also, what criteria you will use to hold this second mortgage, what you will need from this investor and how you will precede with this process are important things to educate yourself about before placing your property on the market.

Are you planning on moving to the New York City area? If you are, have you decided where you would like to live yet? When it comes to living in New York City, there are a large number of individuals who decide to rent an apartment. While renting an apartment is more than possible, did you also know that you have another option? That option involves buying a New York City condo or a Manhattan condo.

When deciding where to live in New York City, there a large number of individuals who are overwhelmed with some of the decisions that they must make. If you are feeling the same way, do not worry. It is completely normal to be concerned with where you will live, especially if you are relocating with your family. Although deciding whether to rent a New York City apartment or buy a New York City condo seems like it could be a long, complicated, and overwhelming task, it doesn’t necessarily have to be. What you are advised to do is sit down and examine all of your options, as well as the pros and cons of each.

When it comes to renting a New York City apartment or a Manhattan apartment, there are many individuals who wish to do so because of the lack of responsibility. Yes, if you rent an apartment it will be your job to keep your apartment clean and in good condition, but that is where your responsibility tends to end. For example, if you are experiencing a plumbing issue, it is your landlord’s responsibly to fix and pay for any pluming repairs. As a renter, you are not the owner of the apartment or even the building complex; therefore, your responsibilities are limited, particularly when it comes to apartment repairs.

Another benefit of renting a New York City apartment or a Manhattan apartment is the commitment. Although you will likely to be required to sign a lease, typically a one year lease, it is easier to move, if you wish to do so. As a renter, you will have to pay your rent, month to month. At the end of your lease, you should have the ability to renew your lease or even not renew it, if you wish to do. When renting a New York City apartment or a Manhattan apartment, it is easier to pick up and move. In fact, if you are lucky to get an understanding landlord, you may even be able to terminate your lease early, if you provide enough notice.

Although there are a number of benefits to renting an apartment in the New York City area, there are also a number of benefits to owning a New York City condo or a Manhattan condo. One of those benefits is that you are actually considered a property owner. Condo complexes are designed to house multiple property units or building units. Each of these units, which are referred to as condos, are like a combination of homes and apartments. Many condos come with bathrooms, kitchens, dining rooms, offices, family rooms, and multiple bedrooms. Although you do not actually own the condo complex, you own your living space and you are joint owners, with the other condo owners, of all community property.

Another benefit to owning a New York City condo or a Manhattan condo is popularity. In the New York City area, condos are highly sought after. Should you later decide, after buying a New York City condo that you do not like the condo that you bought or if city life isn’t just for you, you should easily be able to move. Yes, it will be a little bit hard to leave than if you just rented an apartment, but it is possible to do. Should you decide to sell your condo property, all you will have to do is place it available for sale. You may even want to work with the condo complex owner or association to get the ball moving quicker. However, as it was previously mentioned, condos for sale in New York are highly sought after; therefore, you shouldn’t have a difficult time finding a buyer.

As you can see, there are a number of advantages to buying a New York City condo or a Manhattan condo, as well as renting a city apartment. It is also important to note that each has their own disadvantages. In all honesty, you need to examine your wants and your needs. Would you like to own your own place? Would you like to have as little responsibility as possible?

These important questions may make determining your New York City living arrangements a relatively easy decision.

Why? How much? How? Move it!

“Why?” “How much?” and “How?” are the first questions that we should ask ourselves when we begin to search for an apartment. There are numerous considerations; therefore, a deep understanding of our needs will help us to find the right apartment. This article relates to the issues involved in purchasing an apartment, but is also relevant to rentals.

Purchasing an apartment for investment purposes is different than buying an apartment you intend to live in. First of all, one must ask how worthwhile the investment is, what the yields are over the short- and long-term, or to do a cost-benefit analysis. The process of buying an apartment you wish to live in, which is what I will focus on in this article, involves personal questions, dealing more with needs – the questions of “Why?” “How much?” and “How?”

Why?

The answer to this question will guide us in the right direction, thereby preventing us from chasing after the wrong apartment and thus avoiding bitter disappointment.

1. The need to move to a different area – proximity to the office / schools / centers of activity and more

2. The need for more space

3. The need for an elevator

4. The need for parking

5. The need for quieter surroundings

6. Uncomfortable surroundings, noise, annoying neighbors, and other disturbances

7. Upgrade in standard of living

How much?

What is our budget? Make a detailed list of resources that you have at your disposal:

· Loans

· Payment of an existing mortgage

· Taking an additional mortgage

· Future expected income – gifts, an inheritance, bonuses, a raise in salary

· Take into consideration an additional 10% in costs to cover various bank commissions, lawyer fees, real estate agent commissions, taxes (such as purchasing tax), plus other unexpected expenses

How?

What are the areas worth considering in your opinion? Make a list of at least three options and rank them in order of preference. Explain why you chose each option, and list the criteria for choosing each option. This will make it easier for you to choose among the different options.

It is very possible that during your search you will discover that moving from area ‘A’ to area ‘B’ leaves you with enough money for other “upgrades”, such as an elevator, parking, or the ability to buy on a better floor in a tall building. It may turn out that buying in a different area allows you to buy a larger apartment, or to install the kitchen you have always dreamed about.

If the neighborhoods are not familiar or are new to you, then visit the area, walk around the public areas from which it is possible to learn about the character of the neighborhood – stores, local groceries, synagogues (if it is of interest), kindergartens, cafes, etc. You can also inquire with friends and family who may live in the area.

Increasing one’s living space is one of the most widespread reasons for moving to a new apartment. Perhaps the family has expanded, you move in with your partner, you begin to work from home, or for whatever reason your current home is not big enough.

Define the minimum size you are looking for in an apartment – how many bedrooms you need. The home office should be defined separately – this can always be located in different spaces. In older houses built in the Bauhaus style for example, there is usually space that is not reflected in the number of rooms, or the rooms themselves are particularly large and thus can be rearranged. As an alternative, set the minimum net area you need, rather than the number of rooms.

One of the important considerations in the architectural designs of an apartment is clarifying in just which spaces you live today. Usually, the addition of a child to a family demands the addition of more than one room. In this event, an increase of 15 – 20 square meters over the existing space is required.

Checking the market – does the current supply in the market meet the needs that you have defined for yourself, or is your budget appropriate for the market? In the event that you need a 4-5 room apartment with an elevator and one or two parking spaces, then you may have to look in another neighborhood where there is a larger selection, and in accordance with the price.

Move it !!!

The information published in newspapers and home listings does not list all the information you need. Get off your comfortable couch and go see apartments!

Again – “How?”

We have listed a number of articles that answer the main concerns that you have noted. Now you only need to learn the language of the market (what is “renovated”, “well-kept”, “maintained”, “needs renovations”, “magnificent”, “quiet”, etc.). This will help you in your “real” work and in dealing with real estate agencies throughout the process. Update yourself and learn the market prices, and the inventory of available apartments. At this point, you are acting as an “anthropologist” critiquing the situation, you are still not buying. Visit between five and ten apartments (if indeed the supply in the market allows this).

Tip – After visiting approximately five apartments, you may not remember exactly what you have seen in each apartment. All the sights and information become confusing and intertwine into a beautiful, colorful collage. At this stage it is essential to list exactly which apartments you saw, also the ones you chose NOT to see, each detail, marking date and prices, or attach the information that you downloaded from the Internet and add your comments. It is important to mark down which real estate agent showed you which apartment (the easiest way – attach the business card of the agent to the apartment page) in order to prevent duplication and to know where to return to if you want, and mainly where not to return to. And remember – don’t go anywhere without this list!

When you feel that you are ready, go to real estate agents. It is recommended to go to agents whom you have heard about, who have been recommended to you, and who work in areas that you are focusing on. If you cannot find an agent through these means, turn to newspaper home listings and work only with those agents with whom you feel comfortable, who is credible, and who understand your needs. Let them know your profile as a guideline, if there are clear limits, then say so, but there is no need to enter into details, sometimes an apartment that is not very high up for example, may have the most exposure to greenery and a nice view. There are surprises. Therefore, you should focus on the three or four most important criteria for you: space / elevator / quiet / parking / neighborhood, etc.

What happens when the budget does not match the market conditions?

Do I have the ability to increase the budget? Additional loans? A larger mortgage? Selling another asset?

If ‘No’

Does moving into area “B” or “C” on your list of preferred neighborhoods to allow you to find an apartment that matches your demands? For example, a budget for a three room apartment  could allow for an upgrade including an elevator, extra space, or parking in the neighborhood. Sometimes a slight shifting of locations allows for more. Check the advantages and disadvantages in moving between the different neighborhood options that you listed, what is so essential about choosing one specific area?

If you absolutely must live in the chosen area, then what demand, which is not at the top of your list of criteria, can you compromise on — parking / elevator / a less quiet area / space / the condition of the apartment / the condition of the building / others? Sometimes the difference between an apartment that includes parking and one that does not is significant, and with that difference you can find some other arrangement that is easy and cheaper in a nearby parking lot for many years. Of course, an apartment located on a loud or quiet street also changes the price of an apartment. The price difference between an apartment on a quiet street and an apartment at the end of a road (number one or two) can reach thousands of dollars. This is similar to the price difference seen when moving closer or further away from the center of the towen or city.

On the main traffic arteries  you can find particularly large apartments at attractive prices. These apartments may surprise you, especially the apartments that face the back. You may discover that such apartments overlook a large, green courtyard, making you forget you are in the center of city. The apartments on the front side of the building generally have balconies that block out the noise of the street, and their bedrooms are deeper into the building, with no windows overlooking the street. Here it is important to remember that “what you perceive from afar is not always what you see from up close”. Even so, you must take into consideration the difficulty you may have in selling the apartment when the time comes, since these apartments often take longer to sell.

Good Luck!