Thursday, April 25, 2013

Why New York Real Estate Investors Are Earning High Returns

Real estate in New York is one of the most sought after avenues for investment. New York real estate investors are not solely residents of New York. Affluent investors from around the world consider investing in New York as one of the most lucrative investment options for earning maximum return on capital.
Reasons for investing in New York real estate
Rising property price
According to a recent report by the premier real estate services firm Cushman & Wakefield, New York is currently the world's top property investment destination. In 2010-11, New York area witnessed almost 166 percent increase in property investment. By attracting about $29.7 billion investment during the period, it surpassed London, which for several decades occupied the top spot in the global property investment segment. With better access to finance, the trend is expected to continue. The investment scenario has changed significantly over the past few years. While mortgage backed debt market is still not offering sufficient fund for investment in USA and Europe, the problem appears to be more pronounced in Europe. Here funding is currently focusing on prime leased assets. New York is currently attracting more property investment than Tokyo, which earlier occupied the second spot preceded by London. The earthquake and tsunami in 2011 has adversely affected the property prices in Tokyo.
Uncertain stock market yield
The fluctuating bond yields are prompting investors to invest in something that will assure guaranteed return. Despite the dramatic losses in property investment in 2008, the return on investment has been rising steadily over the past three years. Shareholders in investment companies or trusts are currently earning higher returns than from stock markets. The total return on investment in the current year according to the FTSE NAREIT Index is around 14.9 percent, while the total return on S&P 500 stocks is about 9.5 percent.
Rising rentals
The rising rent of residential and commercial properties is triggering further interest in investment. As more and more Americans are moving into apartments after losing their properties to foreclosures, the profits of landlords and shareholders in investment trust is soaring. Currently shareholders can expect 2 to 6 percent dividend on investment in properties.
How to invest in New York real estate
However, the average investor interested in investing in lucrative properties in New York is not a expert. To realize the various investment opportunities available for investors in new york, most investors rely on companies experienced in dealings.