In recent years, real estate and property values have been on the rise. The markets improved following the recession, and real estate owners were able to see these values increase for the first time in years. Yet, with this benefit of increased value comes the increased expense for buyers.
Buying real estate is now seen as a difficult task as it is tricky business to find hidden values in certain properties. Larger investors are not purchasing at quite the same rate that they have been. Manhattan real estate prices have recently hit a record of an average of $1,872,000 for an apartment in the area. To combat this increase in value, certain strategies have helped a number of buyers make smart, successful purchases.
Recognizing a market that is moving upwards has proven to be a solid grounding for smart purchases. Also, many commercial buyers have worked to turn “B” properties located in “A” locations into assets that fit their locations better. Improving the physical building justifies its value. Improving the tenants and building management also helps to turn over an asset.
Finding value in “B” grade real estate and turning those assets into outwardly valuable building is at the heart of the real estate market right now. Property value may be increasing, but buyers can still generate strong returns from their purchased assets. In places like Manhattan, real estate is as hot as ever. How high can its value climb?
Contributor: Hannah Smith