Purchasing any type of real estate in New York City is a major life and financial decision. When investors are looking to purchase property in NYC, townhouses are often overlooked. However, the benefits and advantages of purchasing a townhouse as investment properties are endless. In a place like NYC, where real estate is costly, and inventory is limited, more landlords should consider the numerous benefits of offering townhouse co-living housing to their residents.
Affordability
For most people 35 and under residing in NYC, rent is the largest monthly expense. As such younger individuals under 35 often are looking to save money and most likely consider living with roommates as a way to keep their living expenses lower and within their budget.
Because of this, townhouses are a good value for investors. Townhouses located in the same neighborhood as single-family homes are often more affordable and cheaper. Additionally, property taxes for townhomes are a lot cheaper due to the smaller lot size. Additionally, HOA fees in townhouse communities are sometimes lower than condo and co-op communities.
Profitability
Purchasing micro-unit and co-living investment spaces is a profitable addition to a landlord’s investment portfolio. This is partly because the COVID-19 pandemic has truly changed the way that many New Yorkers view larger apartment, condo, and coop buildings. Frankly, residents no longer want to live on top of one another and are overall seeking more space and privacy. Assuming that the Covid-19 situation improves at some point in 2022, investors should expect the co-living market to boom going into 2023.
While it is true that investing in co-living spaces can be somewhat of a gamble due to the transient nature of co-living tenants, the majority of landlords who take advantage of this untapped market end up reaping the financial benefits tenfold. Overall, co-living spaces are a win-win situation for both tenants and landlords. On the one hand, tenants get to enjoy co-living housing at a cheaper monthly rate than renting out a single unit while at the same time, enjoying the privacy of a bedroom with shared common areas. On the other hand, landlords are not boxed into renting their space to just one tenant and have other options. Specifically, landlords can divide their space between multiple tenants, which also means that their monthly income is coming from several sources and not just one tenant source. Notably, landlords may find that renting their space room by room allows them to charge higher rents compared with just renting the entire space to one tenant.
Amenities
Furthermore, townhouse co-living often comes with amenities that are included in the monthly rent. Amenities may include Wi-Fi, laundry, barbecue pits, and patios. Additionally, the maintenance and overall upkeep of the property typically falls squarely on the landlord.
Location
The average layperson understands that location is key as it pertains to real estate. In fact, location is one of the prioritized factors for most renters in New York City. Townhouses are typically located in some of the best and most convenient locations throughout this city. Specifically, townhouse developments are usually surrounded by ample dining, entertainment, shopping, and other amenities like schools and parks, all of which are attractive to renters.
Security
One of the major benefits of owning a townhouse is that it offers added security. Specifically, most townhomes have enhanced security for the community. Some townhomes are even part of gated communities. Additionally, most townhouse communities are well lit and have other security features, like cameras and doormen. Renters enjoy the convenience of security while co-living in townhomes in New York City.
A Sense of Community
The Community aspect of residing in a townhouse community can’t be overlooked. Sharing living quarters and amenities offer residents an opportunity to build relationships with other residents and create meaningful bonds and memories.
Consider Townhouse Co-Living
Townhouse co-living is something that most New York investors should consider when purchasing real estate. The advantages are clear and enticing. From the affordability and convenience to amenities, and security, living in a townhouse is like a dream come true for most New York renters. Despite the fact that townhomes may incur additional monthly fees, the benefits received are typically worth the monthly fees associated with creating and renting townhouse co-living housing.
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Authored by: Stanley Montfort
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