Finiding the Best Areas in New York City to buy a property can be very intimidating and somewhat tasking.
However, if you select a suitable place, you will get sufficient returns on investment
A number of communities in New York are more popular than others and this makes costs of homes and mortgages here to be on the high side.
Your best way to succeed in your investment goals is to first study the New York City real estate market, get information about the neighborhoods that have the highest property appreciation rate.
By doing this, you will be able to structure your investment goals around these locations.
The best areas in New York City for home buyers was nearly completely located in Manhattan in the top ten according to a recent report.
Brooklyn and Queens are also areas to consider.
Brooklyn homes are the ones that are enjoying the highest demand and this gives the properties in this location the greatest appreciation rate.
The community is rated high among the top ten cities in New York for increasing property value.
Another community that enjoyed a top rating is Midtown.
Investors make a better return on investments in these expensive markets because- given the massive number of magnificent property inventories- a lot of buyers are given a discount on these properties.
We have provided below the list of top neighborhoods in New York for increasing property value to guide your investment decisions.
1. Gravesend, Brooklyn
If you are searching for a reasonably priced home with potential for increasing property value, a good place to start is Gravesend, located in south central Brooklyn.
The median home sale value in Gravesend in 2018 was 632,500 USD. It is
Those who purchased properties in the area in 2012 got a better price offer when the houses were sold.
According to Census Bureau data, the appreciation rate of this location from 2012 to 2016 averaged 23 percent.
2. Ocean Parkway South, Brooklyn
Ocean Parkway South is sited in southern Brooklyn.
It ranks as the forth neighborhood in New York with the highest properties appreciation rate.
The value of properties in this community has increased by 180, 000 USD which should interest potential investors. This translates to a 26 percent appreciation rate.
If you want to purchase a property here to gain from the increasing value of homes, you need to have a good amount of savings.
The average home value in this community is 863,000 USD. Such an investor would be required to make a twenty percent down payment which would amount to 172,500 USD.
3. Midtown-Midtown South, Manhattan
This area is categorized as the seventh most commercial hub of New York City.
With this reputation, the average home sale value saw an increase of 23 percent in the last four to five years.
The current data shows that the average cost of purchasing a home in this neighborhood is 813,600 USD.
4. DUMBO-Vinegar Hill-Downtown Brooklyn-Boerum Hill, Brooklyn
It’s located on Manhattan’s waterfront. The average home value of this area in 2012 was below 594,000 USD.
Just a year after that the figure escalated to whopping 809,300 USD with a property appreciation rate of more than 36 percent.
Recent data from the Census Bureau showed the neighborhood keeps on increasing property value.
5. Carroll Gardens-Columbia Street-Red Hook, Brooklyn
Carroll Gardens-Columbia Street-Red Hook is located in the southern part of the DUMBO-Vinegar Hill-Downtown Brooklyn-Boerum Hill community.
This is another great area in New York City for increasing property value.
It ranked as the 5th community with the highest property appreciation rate. The value of properties in this area was costly in 2012.
Data from the Census Bureau showed that the average price of property in this community was 781,300 USD in 2012. That figure went as high as 978,000 in 2016 with a marked 25 percentage rate increase of property value.
This is great for homebuyers and investor who purchased a house within these locations in 2012 but this meant a big cost for tenants who rented properties in this area.
6. East Harlem North, Manhattan
East Harlem envelops the northeastern quadrant of Manhattan.
The inhabitants of the neighborhood on the northern side are beginning to enjoy appreciating property values recently.
The data from the Census Bureau proves that the average home value of properties in this community showed a 30, 000 USD increase from 2012 to 2017.
7. Prospect Heights, Brooklyn
The average price of properties in Prospect Heights was 7,000 USD above that of Midtown-Midtown South in 2012.
This value changed to 6000 USD in 2017. The average rate of property appreciation in Prospect height recorded a 22 percent increase from 2012 to 2017.
The rate of appreciation seems not to be going away soon and this makes this place a good potential place for investors looking for a place to invest in for appreciating property values.
8. Upper East Side/southern Harlem
The value of properties is currently fast appreciating in Upper East Side/southern Harlem Manhattan.
This is particularly so with the introduction of the Q train. Inhabitants no longer need to worry about traveling too far east.
In the same way, Prospect Park South BROOKLYN is a good place to look forward to for appreciating properties value.
It has a good transportation system and is closely located to Prospect Park.
Besides, investing in Williamsburg is another good idea now if you want to buy and hold for 7 to 10 years particularly as people are staying away from purchasing properties in this location because of the ambiguity surrounding the L train.
9. East Concourse-Concourse Village, Bronx
The East Concourse-Concourse Village neighborhood in the Bronx in 2016 was 70,000 USD above the sale price in 2012.
This makes a 20 percent total home value appreciation. This amounts to roughly 14,000 USD of appreciation every year, that’s a nice trend.
The latest Census Bureau data illustrates that the median home in Bronx neighborhood goes for roughly 433,300 USD.
10. North Side-South Side, Brooklyn
North Side-South Side is the popular part of Brooklyn’s neighborhood in Williamsburg.
A lot of deteriorated properties here were renovated through the influx of more affluent residents.
It is situated roughly crossways the East River from Manhattan. This community recorded the highest property appreciation rate in New York.
The average property value here rose to 41 percent within five years from 2012 to 2016.
Collectively, the average purchase price for a home was USD 688,433 in 2012. In 2016, it rose to 971,633. This gives a 300,000 USD increase in property value.
Bonus, The Best Areas in New York For Increasing Property Value
The choice of the neighborhood to invest will depend on you and your overall investment goals.
What’s best suited for you may differ from that of other investors. Nevertheless, also try to check out the following neighborhoods.
Home buyers in Midtown and Chelsea in Manhattan are currently getting a better bargaining power than in other locations within the city.
If you are looking for a more affordable property listing, consider places like northern Manhattan, central Brooklyn, and western Queens.
These locations are enjoying high demands because they are well located, close to the public transportation system, and their prices ate lower compared to other parts of the city.
Northwest Chelsea is another location for a potential increase in property value.
There are a lot of new structures being built. It makes sense to purchase a property here before they are completely finished.
Also, another neighborhood you can check out in the city center of Manhattan is Inwood.
Due to the fact that the area has a lot of properties that are greatly undervalued compared to the prices you’d get when you move a bit further into Midtown or downtown.
You can purchase a two or three-bedroom apartment in the location with the same amount you would buy a studio in Brooklyn.
Also, the Bay Ridge is another potential place. It is fast turning into another Park Slope.
Sunset Park is another potential place for investors to invest especially those who can’t get a property in Park Slope because of the high cost.
There is a potential that this community will enjoy significant appreciation in home value for the next five years or more.
Downtown Brooklyn is also another potential place, it is fast turning to a preferred investment location given the incredible growth of various means of transportation and much stimulating innovative development.
And since you’re looking at neighborhoods this might interest you, Top 10 Most Most Beautiful Neighborhoods in America.
Thank you for reading.