Tuesday, June 2, 2015

Miami makes more of New York: comparing the choice to buy for rent in six major cities

Buy real estate for investment purposes and performance, as an alternative to financial assets: a widespread habit among Italians before the crisis and which has since waned, indeed, between taxes, constraints and difficulties in finding tenants solvents, who today different real estate in Italy would lighten. And it is perhaps for this reason that in many, in recent years, having the disposable income have opted for a cross-border real estate purchase. But where it makes the most of the brick? While driving the choice of location in which to buy is not the pure "money", not easy to find points of reference and international comparison, so that Il Sole 24 Ore asked elaboration exclusive portal Casa.it , which is part of the large worldwide group Rea.
The development is detailed and takes account of the neighborhoods and the city, in every country, with the best returns, which are intended gross of fees and expenses and, therefore, as the ratio between the value of the property and any income from lease. In addition to Milan and Rome, we have chosen France (Paris), the UK (London), the US (New York and Miami). And to win the race of annual returns is precisely Miami, perhaps the most young in terms of discovery of purchase for investment and one that can combine the reliability of the use of capital in the United States and an attractive climate all year round .
Miami had stopped abruptly with the Great Depression-estate the years after 2007 and prices fell, especially in locations less valuable; However, at the same time, it was the first area to recover. Now, thanks to a major master plan of development of the area in front of a strong downtown and continuing influx of capital from Latin America, as well as from the Far East, the real estate business not only resumed in full swing, but We are starting once again to sell "on paper". The rents are high thanks to the continuous demand for houses leased restaurant where quality and sophistication, so that Miami sits on top of the charts of cities in which to invest for real estate returns: "Suffice to say that at the level of entire county average yields are around 10%, "says Daniele Mancini. In the district of Little Havana yield is 7.8% annual average, Downtown (where are focusing today purchases) are at 7.3 percent. In South Beach, the sophisticated resort par excellence, but it comes down to 5.8%, because the purchase prices are much higher. But what impact fees and expenses? "Both here, both in New York _ _ says Mancini must take into account a weight of about 50%, although it is difficult to generalize, and much depends on the owner and the types of services that has the property."
A New York In March of this year, rents in Manhattan increased by 1.7% from the previous month and the average rent for an apartment is today of $ 3,900 (approximately EUR 3,480) per month. The supply of housing for rent in Manhattan is developing especially in the areas of Soho, the Financial District, Tribeca and Harlem. "The annual change of the royalties highest was recorded today in Harlem (+ 18% on March 2014), while Greenwich Village is the neighborhood where rents in a year have lost 2.7%. Referring to an apartment with two bedrooms, now rents more expensive you pay in Soho and Tribeca, depending also on the presence or absence of the "doorman", ie the services officer courtesy and safety that is parked at the entrance of buildings in New York, "says Daniele Mancini, general manager of European operations Rea Group and of Casa.it. In a building with a doorman rents in SoHo for a three-room they are on average of $ 7,900 per month, without "doorman" you pay an average rent of $ 6,700 monthly. Even in Tribeca rents are included in a range between 5,000 and $ 7,000 per month. Investing in Manhattan does not give a lot of satisfaction in terms of returns: do not ever get the yields higher than the 3.5% annual gross. Higher yields obtainable in other urban centers around the island of Manhattan as the Bronx or Queens where annual returns are on average higher than 5.5%. A Brooklyn instead the investor market has already saturated the demand and the possibility of obtaining yields above 4% are very rare.

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