Guide to New York City

Introduction

‘The City that Never Sleeps’ is one of the most desirable places in the world to visit, let alone to consider buying a property overseas, and for this reason the perception exists that even the smallest studio flat is incredibly expensive.

Now though, the combined facts of low-cost air fares to the city’s airports, the strength of Sterling against the US Dollar, and concerns over the health of the real estate market in the States, buying a Manhattan pad is somewhat more of a realistic possibility. The possibility of joining the rich, famous and talented in one of the top five cities in the world is now far more realistic than it once was.

While most of us will be unable to use a property in New York City as a weekend getaway or even a permanent base, it is one of the most important financial, cultural and political centres in the world, so there is always a demand for rental property. The investment potential is helped by the fact that there are always far more people who want to live in New York than can afford to buy, and who compete for rented apartments.

The region

Buying property in New York City can essentially be divided into two different parts, buying on Manhattan or buying in the boroughs around the main city island. The two different strategies of buying in the New York City region offer different prospects, advantages, returns and, more than anything, different types of property. If you are looking to buy a four-bedroom home with any kind of a garden, and you aren’t Donald Trump, you are likely to be looking outside of Manhattan.

The island of Manhattan offers some of the most densely-packed residential living to be found anywhere in the world. This central part of the city of New York is small and simple enough to be able to be navigated on foot, but is also graced with an extensive and regular subway system. The different parts of Manhattan are as diverse and interesting as their inhabitants – and most people have a favourite district in accordance with their tastes and where they feel comfortable.

With the financial district and Battery Park at the southern tip of the city, you move up through the industrial TriBeCa and the diverse SoHo to the artistic and flamboyant Greenwich Village. Further north, Chelsea Village and the Garment District give way to the Midtown and the rest of the major business districts.

After this, you happen upon one of the most impressive feature of New York City, the vast expanse of Central Park, which gives Manhattan space and air to breathe, and is full of life both summer and winter. To the west and east of Central Park are the most expensive and sought-after districts - Upper West Side and Upper East Side - both of which at home to millionaires and business moguls.

The districts of Morningside and Harlem are located further to the north, where extensive redevelopment is currently being undertaken.

Outside of Manhattan, the commuter districts are linked to the city to allow workers to access the city easily and still live in a slightly less urban setting. Towns like Yonkers, Scarsdale and Eastchester are easily within reach of the city, while Brooklyn and Queens, while poorer, still house large numbers of workers who commute to Manhattan daily.

Finally, although they are strictly speaking in New Jersey, Hoboken and Staten Island are also very popular towns for those who want to be close enough to get to Manhattan for business and leisure without paying the inevitable premium involved in buying in one of the busiest real estate markets in the world.

Climate

Situated on the Atlantic coast, New York City is sometimes subject to some of the extremes of exposure to the ocean, but for the most part, climate remains in the same kind of temperate zone as much of the UK. Summers are often hotter than on the British Isles, while the winter temperatures can be far harsher, with biting winds and severe snowstorms frequently a feature of the months of December, January and February.

Getting there

Outside of mainland Europe, there are few places in the world that are better served from UK airports that New York. Flights leave the UK from various airports several times a day, and will get you to either JFK or Newark airports in six to seven hours. The choice of airlines is staggering, going from the business class only of SilverJet to the budget airlines like Zoom Air who have started to nibble into the market of the traditional scheduled carriers like British Airways and Virgin Atlantic.

Property

Once again, the diversity of the modern metropolis that is New York City shows up in the range and prices of the property that is available to buy there. While having always been popular with investors, there are now new developments and renovations of older buildings that are opening up new districts to more affluent buyers. These districts were previously far more industrial, and offered only the kinds of spaces that were used for workshops or storage.

Examples of this increasing gentrification of neighbourhoods are the Meatpacking District near the Hudson River, which has gone from being the larder of the city to possibly the trendiest place to be seen, with a plethora of fashionable restaurants, bars, and the kind of loft apartments that have become the most desired real estate among young professionals in the city.

It is these former industrial areas that have been converted into the new property hotspots of Manhattan real estate that are the drivers behind the market at the moment. Developers are converting old business premises for the needs of young professionals, and in turn giving a new lease of life to previously depressed districts.

The renovation of older buildings that used to serve a purpose other than residential is a theme that runs through real estate in the city at the moment. Former banking headquarters, office blocks and hotel spaces are all being converted for property investment to service the demands of the market across the city.

In addition, there are always new developments going up around Manhattan, and these now more often than not are designed as mixed-use buildings, incorporating retail, office, hotel and residential space. A new-build or newly-renovated apartment on Manhattan can be found from £175,000 for a studio, up to whatever you are able to pay. Property on Manhattan is truly a market in which you can spend as much money as you wish, and there are very few limits as to what is possible.

The other types of property that are among the most desired in New York are ‘brownstone’ houses and the ultra-luxurious apartments of the super-rich that are to be found on the Upper West and East Sides.

Away from Manhattan, properties are still sought-after and the market is busy, but prices are a step below what you will find in the centre of the city. For example, a new-build two bedroom apartment in Hoboken can be found for around £275,000 and a three-bedroom townhouse on Staten Island for under £150,000.

There are currently no restrictions on UK citizens buying in New York, and while the buying process is similar to the UK, once an offer is accepted, you are locked in to the deal.

Local life

New York residents are much like Londoners in that a large proportion of them come from outside the city. In this kind of city, the way to find the best places to eat is to find out where the locals go. Think about doing the same thing with property, and you may just stumble upon a gem.

Conclusion

The attraction of New York City is different for everyone – but you will find that most people have some kind of affinity with the city. Make sure that before you buy, you take several trips to New York at different times of the year to see how the seasons change the place. Also, take the time to walk around the different districts – the diversity of New York means that most people will be able to find somewhere they are comfortable and feel at home.

On the other hand, if you don’t want to get to know the city at all for yourself, there are opportunities for investment properties in well-managed developments close to amenities and attractions. You may find in this case that your returns are better aiming for the local rental market than short-term tourist lets.