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For experienced landlords or newcomers to real estate investing, Rochester NY has a reputation as being a sound and potentially lucrative city to purchase a rental property. Along with good quality properties from which to choose, the city’s impressive infrastructure, great standard of living, and good employment prospects make it an attractive place for multiple demographics considering a move. The kind of investment property that suits your financial goals best depends completely on your individual circumstances; but if you’re unsure and looking for advice, it’s a wise idea to partner with a professional property management company before you begin your search. When it comes to real estate investing, Rochester NY has a great range of options, and your first question will probably be: house or apartment? Real Estate Investing, Rochester NY: House or Apartment? When deciding whether to invest in a freestanding house or an apartment, there are numerous considerations. While, again, it’s important to note everybody’s circumstances are different, generally these are the pros and cons of both options. An Apartment Pros Easy to manage: Because an apartment generally doesn’t have land or gardens to look they’re less hassle when it comes to regular maintenance. There are also fewer considerations in terms of the exterior maintenance. Cheaper to upkeep: Because an apartment is part of a strata title, with an owner’s corporation, many of the building costs (with the exclusion of council taxes, internal maintenance, and contents insurance) are shared. Lower purchase price: One of the most attractive benefits is that an apartment is much more affordable, so the initial cost of your investment is less. Cons Less capital growth: In general terms, with plenty of new apartments being built all the time, they show lower capital growth because there’s no land value. The payoff is higher rental yield, however. High owner’s corporation costs: Sometimes owner’s corporation fees can be very high, particularly in modern buildings where there are amenities like elevators, gyms, and pools. A House Pros High potential for capital growth: Depending on the location, of course, there’s a high chance of achieving steady capital growth over the long term, due to the land value. Reliability: Because of the main demographic looking to rent houses (families with children), they are generally more reliable as a rental prospect. Families tend to want to sign longer leases, so vacancy rates are lower. More opportunity to improve: A house offers more scope to add improvements in order to attract higher rental returns. Improvements can be anything from renovating or upgrading, to adding an extension, swimming pool, or lock-up garage. Cons Initial cost: A house (particularly a large one, with a big garden) costs more, so the initial layout for investment is higher due to the land value. Lower rental yield: While an apartment’s rental yield is usually higher than a house, the payoff for reduced cash flow is capital growth. You need to decide what’s more important to you. In the end, as long as you’ve done your research and you have a good understanding of all the factors above, both a house and an apartment in Rochester can make for a potentially successful investment. Once you’ve decided to take the plunge into real estate investing, Rochester NY’s professional property managers can be there to take care of every aspect of managing your rental property. Author Plate Danny Torres is from Torres Turn Key, a property management company in Rochester NY with more than ten years’ experience dealing with both domestic and international clients. When it comes to real estate investing, Rochester NY can be an extremely profitable location. Providing a holistic service for both commercial and residential properties, Torres Turn Key brings together a host of experience and specialist knowledge to build long-term relationships and create maximum value and benefit for their customers.
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