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Category: Luxury Real Estate

BARNES Magazine n°36 is out

In this edition, we feature Joy & Alexandre Barrière, the new owners of the Barrière Hospitality group. Renowned for their luxury hotels across the globe, and more specifically the Fouquet’s in the Champs-Élysées in Paris, The Majestic in Cannes, and Le Carl Gustaf in St-Barth, the brother and sister duo represents the fourth generation leading the family hotel group.

In this most recent edition, we also explore the savoir-faire of Fauré Le Page, discover new up and coming interior designers, learn more about the philanthropic work of the Chef Yannick Alléno, and shed light on the world of silver tableware with Puiforcat.

Not forgetting a world tour of our finest properties for sale and for rent.

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Understanding the 421-a Tax Exemption: Promoting Affordable Housing in New York City

The 421-a tax exemption is a significant real estate incentive program in New York City aimed at encouraging the development of new residential buildings and promoting affordable housing. This program offers property tax breaks to developers who include affordable housing units in their new projects. By reducing the tax burden, the city incentivizes the creation of more housing options, particularly for low- and moderate-income residents.


This post addresses the specifics and benefits of the former 421-a program, which has been recently discontinued. However, it remains relevant as a handful of buildings still benefit from the tax exemption. Extensions have been granted for ongoing unfinished projects, and the state now offers a replacement program labelled 485x (with different parameters). 

Person filling tax documents

What is the 421-a Tax Exemption?

The 421-a tax exemption, also known as the Affordable New York Housing Program, provides a partial property tax exemption for qualifying new residential construction projects. Developers receive this tax break in exchange for setting aside a portion of the units in their buildings as affordable housing. The program aims to stimulate the construction of new housing and address the city’s affordable housing shortage.

Key Requirements of the 421-a Tax Exemption

  1. Affordable Housing Requirement:
    • Developers must allocate a percentage of the total units in the new building as affordable housing.
    • The specific percentage and affordability levels depend on the location and size of the project.
  2. Location:
    • The program applies to new residential developments across New York City, with varying requirements based on different zones and neighborhoods.
  3. Duration:
    • The tax exemption can last for up to 35 years, depending on the specific terms of the agreement and the project’s compliance with affordability requirements.
  4. Construction Deadline:
    • Developers must complete construction within a specified time frame to qualify for the tax exemption.

Benefits of the 421-a Tax Exemption

  • Tax Savings: Developers can significantly reduce their property tax liability, improving the financial viability of their projects.
  • Increased Housing Supply: The program encourages the construction of new residential buildings, adding to the city’s housing stock.
  • Affordable Housing: By mandating a portion of affordable units, the program helps provide housing options for low- and moderate-income residents.

Case Study: A Mixed-Use Development in Brooklyn

Let’s look at a case study to understand how the 421-a tax exemption works in practice.

Scenario: ABC Development Company plans to build a new mixed-use residential building in Brooklyn, consisting of 100 units. They aim to benefit from the 421-a tax exemption to improve the project’s financial feasibility.

  • Planning the Project: ABC Development decides to set aside 30% of the units (30 units) as affordable housing. These units will be rented to tenants with incomes at or below 130% of the area median income (AMI).
  • Applying for the Exemption: ABC Development submits their project plan to the New York City Department of Housing Preservation and Development (HPD) for approval. They outline the total number of units, the number of affordable units, and the targeted income levels for affordability.
  • Receiving Approval: After reviewing the application, the HPD approves the project, confirming that it meets the requirements for the 421-a tax exemption. ABC Development can now proceed with construction.
  • Construction and Leasing: ABC Development completes the construction within the required timeframe and begins leasing the units. The affordable units are rented to eligible tenants at reduced rents, while the remaining units are rented at market rates.
  • Tax Benefits: With the 421-a tax exemption in place, ABC Development enjoys a significant reduction in property taxes for up to 35 years. This tax break enhances the project’s profitability and helps offset the lower rental income from the affordable units.

Outcome: ABC Development successfully leverages the 421-a tax exemption to create a mixed-use residential building in Brooklyn. The project not only adds 100 new housing units to the city’s supply but also provides 30 affordable units for low- and moderate-income residents. The tax savings help make the project financially viable, benefiting both the developer and the community.

421-a tax exemptions do not only concern rental buildings. A handful of condominiums (new developments) have benefited from this program, therefore extending the tax exemptions to the individual owners of the units. These tax exemptions remain with the unit, and any subsequent buyer will also benefit from them until expiration.

BARNES New York has assisted clients in buying units in 421-a approved buildings, and can curate a list of options for interested buyers, whether for primary residence, pied-a-terre, or investment purposes. 

Conclusion

The 421-a tax exemption is a vital tool in New York City’s efforts to address its affordable housing crisis. By incentivizing developers to include affordable units in their new residential projects, the program helps increase the supply of housing options for residents across income levels. Understanding and utilizing the 421-a tax exemption can be a win-win for developers and the community, fostering the development of vibrant, inclusive neighborhoods. 

BARNES New York is your ideal real estate partner to assist with many scenarios for your real estate project, including the 421-a tax exemption. Please contact us to learn more.

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BARNES New York at the NYC Real Estate Expo – October, 16th 2024

BARNES New York had the pleasure to be a platinum sponsor of the yearly NYC Real Estate Expo.

This year’s edition of the NYC Real Estate Expo took place on Wednesday, October 16th, 2024 at the New York Hilton Midtown, and BARNES New York, alongside BIM Property Management, had the honor of being a platinum sponsor with two booths where our team had the chance of meeting colleagues and professionals from the real estate industry.

BARNES President, Thibault de Saint Vincent, was invited to be a guest speaker in the main room alongside Vince Rocco, for a conversation regarding International Luxury Real Estate. He was followed by Yann Rousseau, BARNES New York Managing Partner, who participated in a panel with industry peers – Stefani Berkin from R New York, Nile Lundgren from SERHANT, Nikki Field from Sotheby’s International Realty, Alexander Zakharin from Nest seekers International, and Eric Benaim from Modern Spaces – around the topic: “NYC real estate market forecast: what to expect”.

Joachim Gruet, real estate salesperson at BARNES New York, had the honor to be the host speaker at the Bryant Room, where he introduced guest speakers and conversation topics.

The NYC Real Estate Expo is a yearly event gathering professionals in the real estate industry and the general public from across the country. This year’s edition featured 225 vendors, 150 speakers and resulted in more than 12,000 attendees.

BARNES New York team
BARNES President, Thibault de Saint Vincent in conversation with Vince Rocco.
BARNES NY and BIM booths at the NYC Real estate Expo
BARNES NY managing partner, Yann Rousseau doing a podcast with Vince Rocco
BARNES NY team
Yann Rousseau, managing partner, at a roundtable at the NYC Real Estate Expo.

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Understanding the 1031 Exchange: A Powerful Tool for Real Estate Investors

A 1031 exchange, named after Section 1031 of the U.S. Internal Revenue Code, is a strategy that allows real estate investors to defer paying capital gains taxes on an investment property when it is sold, as long as another “similar” property (for investment purposes) is purchased with the profit gained by the sale. This tax deferral can be a powerful tool for investors looking to grow their real estate portfolio without the immediate tax burden.

What is a 1031 Exchange?

In simple terms, a 1031 exchange allows an investor to sell a property, reinvest (part or all of) the proceeds in a new property, and defer the applicable capital gain taxes. The primary benefit is the ability to use the full amount of the sale proceeds to purchase a new property, thus potentially increasing the investor’s buying power.

Key Requirements for a 1031 Exchange

  1. Like-Kind Property: The properties involved in the exchange must be of “like-kind,” meaning they must be of the same nature or character, even if they differ in grade or quality. For real estate, most properties are considered like-kind to each other. Primary residences are excluded, as well as “fix-and-flip” properties.
  2. Timing Rules:
    1. Identification Period: The investor has 45 days from the date of selling the original property to identify potential replacement properties.
    1. Exchange Period: The investor must complete the purchase of the replacement property within 180 days from the sale of the original property.
  3. Qualified Intermediary: The exchange must be facilitated by a qualified intermediary who holds the funds between the sale of the original property and the purchase of the replacement property.
  4. Title Requirements: The title of the new property must be in the same name as the title of the property sold.

Benefits of a 1031 Exchange

  • Tax Deferral: The most significant benefit is the deferral of capital gains taxes, allowing more capital to be reinvested.
  • Portfolio Diversification: Investors can use 1031 exchanges to diversify their holdings by investing in different types of real estate or different geographic locations.
  • Increased Buying Power: By deferring taxes, investors can use the full amount of their sale proceeds for the purchase of new property.

Case Study: From Single-Family Rental to Commercial Property

Let’s look at a case study to understand how a 1031 exchange works in practice.

Scenario: Jane owns a single-family rental property that she purchased for $200,000 ten years ago. The property has appreciated in value and is now worth $400,000. Jane wants to sell this property and purchase a commercial property to generate higher rental income.

  • Selling the Original Property: Jane sells her single-family rental for $400,000. Normally, she would have to pay capital gains tax on the $200,000 profit (the difference between the sale price and the original purchase price; property fiscal depreciation may need to be taken into account as well).
  • Identifying Replacement Property: Within 45 days of the sale, Jane identifies a commercial property valued at $500,000 as her replacement property.
  • Using a Qualified Intermediary: Jane uses a qualified intermediary to hold the $400,000 proceeds from the sale of her single-family rental.
  • Completing the Purchase: Within 180 days, Jane uses the $400,000 held by the intermediary and an additional $100,000 of her own money to purchase the commercial property.

Outcome: Jane successfully completes a 1031 exchange. She defers paying capital gains tax on the $200,000 profit from the sale of her single-family rental and reinvests the full amount into a higher-value commercial property. This allows her to leverage the tax deferral to potentially generate greater rental income and continue growing her real estate portfolio.

Conclusion

The 1031 exchange is a valuable tool for real estate investors looking to defer taxes and maximize their investment potential. By understanding the rules and leveraging the benefits, investors like Jane can strategically grow their portfolios, diversify their investments, and increase their buying power. Always consult with a tax advisor or a qualified intermediary to ensure compliance with the specific requirements and to optimize the benefits of a 1031 exchange. 

BARNES New York has already assisted multiple clients with their 1031 endeavors, and can therefore help you with the full process and assist in pairing you with the right partners. Do not hesitate to contact us to receive further information.

Professional Executive business team brainstorming on meeting to planning investment project working and strategy of business making conversation with partner and consultation of collaboration.

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How to become a luxury real estate agent in New York?

New York is one of the best areas and states to be a real estate agent. While there are many different types of real estate agents in the area, being a luxury real estate agent is the best because you can get higher commissions off the sales since you are working for high-dollar properties, and you are also working a high-end clientele.

This guide will cover all the steps and details you need to get started working as a luxury real estate agent in NYC.  

How do you work for real estate brokerages in New York?  

There are many different steps you need to take before you can start working in real estate. As a luxury real estate agent, there are also some additional things you need to do. Here is a quick breakdown of things to start working on: 

  1. Become a licensed real estate agent. It’s best to get licensed in New York or you will have to switch your license over if you got it in a different state.  
  1. Get some experience. Make sure you get experience specifically in the luxury part of real estate. Before getting into the luxury market though, make sure you are learning about basic sales as you will need these skills once you start getting clients and making sales.  
  1. Find a luxury buyer. See where the high-net-worth individuals in your community tend to spend their time and then network there. Ensure the conversations are natural though and not all about real estate, trying to learn more about their background to find what will fit their needs.  
  1. See the needs of your high-end clients. Your clients that are high-end and looking for luxurious homes might not have the same needs as other clients. They often need more information about a number of topics. For example, you will want to learn more about legacy planning, insurance, asset privacy, common property, asset appraisal, and banking and lending.  
  1. Make sure you’re an authority on all the right topics. You want your high-end clients to trust you. Make sure you know how to market yourself well. Use spare time to educate yourself so that you know all the answers to their questions as soon as they arise. 
  1. Get a luxury homes certification. This is a special course for those that want to only deal with high-end sales. This certification class will teach you many different things including how to list luxury homes, how to promote yourself on the luxury home market, how to work with high-net-worth clients, and how to show luxury properties properly.  

Use expired luxury listings. Find a luxury listing that expired and did not sell. You can then go to the seller and suggest a way for them to market it better to try and get a sale. Many of these clients will gladly let you come and do the work for them because they are tired of trying to sell it themselves. Make sure you approach them confidently and show your experience.  

How can I become a real estate agent in NYC? 

The best way to get become a real estate agent in NYC is to get your real estate license. Before you do this, you will need to complete a 77-hour course that is approved by the Secretary of State.  

Once you have completed the course, you can sit for the license exam. Once you have the license, you can begin working as a licensed real estate salesperson for a brokerage.  

Summary

Becoming a luxury real estate agent is a lucrative career that is fun and rewarding. You just need to take the proper steps to ensure you get your license and enough experience in the field so you can market yourself and the homes well.  

If you’re looking for a luxury real estate company in New York, check out BARNES New York to see the luxury homes, condos, and apartments we sell all over the state of New York.  

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Why should you buy a house in Montauk?

If you are planning to live in the Hamptons region of New York, you probably need to anticipate your budget to find a home and make it your own. It is not uncommon for people to spend millions upon millions of dollars when they are looking for luxury homes or mansions. 

The area of Montauk is an upscale area, but it’s actually usually more affordable than other parts of the Hamptons. And it features a ton of locations and events that you can’t find anywhere else, including in other parts of the Hamptons.  

For those reasons, and many others, many people are flocking to Montauk and hoping to call it home in the years ahead. The popularity of this location has skyrocketed over the last decade, and it’s been harder and harder to buy a house in Montauk. This is especially true for anyone trying to find luxury houses, luxury villas, and luxury mansions in Montauk. 

The truth is that if you are hoping to buy a house in Montauk, there is a lot you need to know. You need to be familiar with the area, the businesses, and events, and all the things to be aware of when shopping for a home and exploring the area. Luckily, our guide can give you access to everything you need to know about Montauk and the particular real estate market there.  

How much does it cost to live in Montauk? 

Although Montauk might be considered a more affordable area to live in in the Hamptons, you still need to take your budget into consideration. As of Q2 2024, the median home price in Montauk was about $1,800,000 according to the Samuel Miller market report. This includes locations in the most popular neighborhoods, such as East Great Plains, South New London, Taftville, and others.  

The homes in the Hamptons aren’t on the market long. They are typically sold about 130 days after they are listed, which shows the interest in this region. And there aren’t too many homes for sale either, with around 73 listings on the market as of Q2 2024. 

Living in Montauk isn’t inexpensive, but it’s a far more affordable part of the Hamptons than others such as South Hamptons, East Hamptons, and more. This is one of the most attractive features for many when it comes to Montauk. 

Why buy a house in Montauk? 

You will always have something fun, unique, and special to do when you’re living in Montauk. Even people who don’t live in the area sometimes travel great distances so that they can enjoy the businesses and events that are only found in Montauk.

If this part of the country is going to be your new home, you need to be aware of the things that you will get to experience. There is a lot that will keep your days – and nights – busy and exciting.

From local bars to coffee shops, beachfront parties, and parks, Montauk truly does have something for everyone if you know what to look for and where to find it.  

Food 

You have never had pizza like the type you will find at Robert’s Montauk, which is known for its wood-fired pizza and delicious drinks and large bar. This has long been one of the most popular eateries in the area – and with good reason too.  

If you’re looking for delicious cuisine straight from Uruguay, Marram will be right for you and will offer you a slew of delicious daily-rotating dishes with the most delectable delicious meats and roasted veggies.  

Few eateries will leave a memory as lasting as one made at Montauket, which offer American dishes and live music with a gorgeous view right on the water. Take in the sunset, enjoy some local beers, and look out at the bay. When you’re eating your meal at Montauket, you’ll realize that life doesn’t get much better than this.  

Outdoors 

If you’re looking for something to do outdoors in Montauk, then you are in luck. There is not just one or two things to do in this area, there is in fact so much to do that it will feel like you never have enough time to do it all.  

Of course, you could spend days upon days lounging on the beaches of Montauk, but there is even more to do than just that. For example, you can take a unique Montauk lighthouse tour via bike, or you can explore the history of the area and walk through classic buildings that are more than 100 years old.  

Do you want to get up and close and personal with the seals that live in the area? What about taking a cruise on the water as the sun goes down? Maybe enjoy an outdoor concert with a yummy glass of wine along with friends and family? All of these things are possible in Montauk. There are many year-round and annual activities that people enjoy when moving to the area.

Summary

Montauk is known for its beach-front beauty that is unparalleled, even in other areas of the Hamptons. It truly is a beautiful, picturesque region that is well worth the experience. But if you are hoping to find a luxury house or mansion that can be yours in Montauk, you need to make sure you only turn to the experts. At BARNES New York, you will find a team that knows the market well, what to look for, what to avoid, and what to keep in mind with the luxury real estate market. Contact us today to discuss your future and any possible move to Montauk and beyond.  

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Why should you buy an apartment in Sunnyside? 

If you are looking for a new home in Queens, you might be considering the various neighborhoods in the area. Sunnyside is located in the western part of the borough and has become a popular spot to live in over the years. 

If you are looking for a home for sale in Queens or any kind of Sunnyside real estate, keep reading. Queens is a diverse borough that is home to several different cultures. Not to mention, there may still be a bunch of food trucks serving up several different dishes from all over the world. 

Let’s take a look now at some of the reasons why you should buy an apartment in Sunnyside.

Plenty of housing options in Queens 

Housing for sale in Queens might be expensive and out of your price range. But that shouldn’t be the “be all to end” all for you. So it’s important to explore all your options. 

The good news is that Sunnyside does have a wide range of prices for homes, while you’re close to a ton of amenities and attractions. The median condo sold price in Sunnyside as of July 2024 was $692,410 – which is less expensive compared to Astoria and Long Island City. As for co-ops, it was $318,500 in July 2024, with an abundance of co-op supply.

If you are looking for a single-family home, apartment, or condo, you might find one that fits you best in Sunnyside. 

There’s a strong sense of community 

Queens is known for its strong sense of community. This may be one more good reason why to buy an apartment in Sunnyside. You’ll be meeting with people from different cultures and walks of life. 

They are friendly, diverse, and always make people feel welcome. You can even take part in the local events and activities that take place all year long. Who says you have to travel to Manhattan to have all the fun? 

If condos may not be the best option, buying a co-op in Sunnyside may be a great alternative. Co-ops have stricter rules and regulations compared to condos, but are more affordable than other real estate options.  

If you do have a bit of money off to the side, it may be enough to snag an apartment for sale in Sunnyside. 

Ease of access 

The ease of access from Sunnyside to the entire city is within reach. The neighborhood has about three different subway stations, including 52nd St and 46 St. – Bliss St. You’ll be able to utilize the subway to go just about anywhere in New York City. 

Even better, you can also take the subway to Grand Central where you can hop on a commuter rail that will take you to points beyond New York City including Westchester County and Connecticut. 

There’s also Amtrak and Long Island Rail that will help you get from point A to point B, whatever the destination is for you. With so many transportation options, you might get a little overwhelmed with where you want to go. 

By the way, Queens is also home to two major airports – LaGuardia and John F. Kennedy. Either airport may suit you best, especially Kennedy with its direct connection to plenty of international destinations. 

Summary 

Sunnyside may be one of the best neighborhoods in Queens. You’d be hard-pressed to find an apartment that will make you feel like you’re right at home. If you are looking for that dream place to live, you can contact a real estate agent that knows the area well. 

Contact us at BARNES New York today, and we’ll make sure we fulfill your needs for finding that perfect apartment. 

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In the Media – Why should you consider Westchester and Connecticut for your real estate project? by BARNES

Welcome to a comprehensive exploration of “Why You Should Consider Westchester and Connecticut for Your Real Estate Project.” In this article, we delve into the appealing attributes and strategic advantages of these two prime locations, examining the factors that make them ideal for real estate investment and development. Join us on this insightful journey as we explore the unique qualities of Westchester and Connecticut, from their scenic landscapes and vibrant communities to their robust economies and accessibility to major metropolitan areas. Gain a nuanced understanding of why these regions offer exceptional opportunities for your next real estate project. Discover why you should consider Westchester and Connecticut for your real estate project in BARNES’ article for the French-American Chamber of Commerce.

Read the article

What is the average house price in Westchester? 

Westchester County is located in the southern part of New York State. It’s one of the most desirable locations for people looking for a home, especially if they are working in New York City or want to be close to it. 

It has plenty of natural landscapes, diverse cultures, and plenty of educational opportunities. The real estate market in the area has grown in popularity in recent years (and for good reason). We’ll discuss what the average house prices are in Westchester in this guide. 

We’ll also cover anything else that you may need to know about the real estate market in the area. If living in Westchester County is something that interests you, keep reading. 

What is the Westchester County real estate market like? 

The Westchester County real estate market is thriving. As of right now, it has a median home value of $791,000 as of June 2024 according to OneKeyMLS data. This was a 9.1 percent increase from the previous year and higher than the national median home value of $725,000. 

The home value has increased due to the high demand for real estate in the area. Not to mention, there are several factors that make Westchester County an attractive location. The proximity to New York City is one of them. 

Another thing that makes Westchester County attractive is its accessibility. With a robust transportation network including highways, rails, and buses, it will be easy to get around, meaning you can take a trip to NYC or even neighboring New Jersey using local transit. 

Likewise, you can also access different cities in New York State via Amtrak. You can get around the entire country on Amtrak even via Westchester County (although New York City is often a hub to get you just about anywhere in the country). You will also be in close proximity to the three major airports in the NYC area (LaGuardia, JFK, and Newark). 

What is the average house price in Westchester? 

The average house price in Westchester will vary on several factors. The major factor is the location. The median price for a house in Yonkers is estimated at $490,000, as of June 2024. 

If you travel to neighboring towns such as Rye or Scarsdale, you’ll see the average house price increase dramatically. Scarsdale has a higher median home prices, close to $2.3 million, while Rye is close to $1.1 million. If you’re looking for a home that fits your price range, some towns may fit the profile while others may not. 

You may find the home of your dreams in White Plains if it fits your budget range. Even if you have to narrow your search area, you’re bound to find a place that you can call home. This includes plenty of high-end properties including luxury townhomes, sprawling estates, and historic homes. 

If you are looking for something more affordable, there’s always smaller single-family homes and apartments. 

What to consider before you buy a property in Westchester?

If you intend to buy a property in Westchester, there are plenty of factors to consider. Your most critical needs will be addressed. They vary from one buyer to another. 

Let’s take a look at the following factors below: 

Commute time 

If you are working in New York City or the surrounding area, this will be important. How much time would you use to commute to and from work? Even better question – what will you rely on for the commute in general. 

You have plenty of options for commuting including rail and bus. If you want to drive, that is also an option, although you will need to consider parking. Even though there are plenty of people that have eschewed the idea of commuting thanks to remote work – you might still want or need to commute yourself. 

Find a home where the average commute time suits you best. 

Budget

What is your desired price range? How much are you willing to spend on a home? This will whittle down plenty of options. 

It may also mean narrowing down your search area. You might be dead set on getting a home in New Rochelle, but your options in the city may be none in terms of affordability. But don’t lose hope. 

You can find a place that you’ll enjoy calling home, even if it’s not in your original intended location. Better yet, you may find a few hidden benefits (like a shorter commute time or being close to all the action downtown). 

Summary

The average house price in Westchester may be a bit higher than the national average. Yet, you can find one that may be on par with it. It all depends on where you find it. 

Remember, finding a home will be based on your critical needs and preferences, as well as your budget. Contact us today to help you find a place for you. 

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Why should you buy a property in Connecticut? 

Connecticut is a small state with a rich history, miles of coastline, and plenty of communities within a stone’s throw away from some of the major cities of the United States. It also has a thriving real estate market that offers plenty of opportunities. 

This guide will go over why you should buy a property in Connecticut. The market may be competitive right now. Yet, Connecticut Real Estate is a must-watch market. 

The homes will be bought and sold fast. If you are interested in purchasing property, read more to find out why Connecticut may be the best place. Let’s take a look now at the following list below: 

Location 

Connecticut is a state located in the southern half of the New England region. It is sandwiched between two major US cities – Boston and New York City. Fairfield County, located in the southwestern part of the state, is a popular location for real estate. 

It is especially convenient for those who work in New York City and intend to commute on a regular basis. While Boston may be farther away from various towns and cities in Connecticut, it’s also a great place to travel to, especially when you want to get away for a weekend. Boston has plenty of rich history and several tourist attractions that you can check out including the Freedom Trail, Faneuil Hall, and the Old North Church among others. Boston can be accessible by I-95 and even Amtrak rail. 

Likewise, you can also take a day trip or weekend getaway to New York City. If you travel to the Big Apple, you can check out the Statue of Liberty, the Empire State Building, One World Trade Center, and others.  

Whether you know it or not, Connecticut is a central location for commuters and travelers. If you intend to travel internationally, you can easily access three airports with direct international flights. They include Logan Airport in Boston, JFK Airport in New York City, and Newark International in Newark, New Jersey. 

The real estate market 

The real estate market in Connecticut is robust, but competitive. According to the Miller Samuel report, the median home value in Fairfield County for Q1 2024 was approximately $545,000. It has increased 6.9% from the previous year and will probably continue to strengthen over the course of the next few years. 

This can be a great opportunity for real estate investors looking to purchase a property that can give them an excellent ROI. Likewise, people looking to buy a primary residence in Connecticut can take the opportunity to purchase a home.

Either way, the real estate market provides plenty of opportunities. Keep in mind that the home values may vary from one local market to the next. Which means that the housing market will differ in Greenwich compared to Putnam or Norwich. In Greenwich for example, for Q1 2024, the median sale price for a single-family house was a little bit over $3 million, when the price in Fairfield County was about $660,000.

A single-family home with the same number of bedrooms and bathrooms may be high-priced in one community. Meanwhile, you can get a different price in another. If you are planning to buy a property in Connecticut, you’ll want to take a look at how much you can be able to afford. 

This means you will need to exclude certain intended locations. And that also means emphasizing your focus on other areas of Connecticut. You will still have a handful of opportunities, even if you narrow down your search area. 

The demand for rental property is high 

If you are a real estate investor searching for rental property, the demand will be high. That demand comes from tenants looking for an apartment of their own. You’ll be able to generate plenty of rental income that will be fair for the current market. 

Connecticut has plenty of educational institutions, a strong job market, and plenty of people who commute to New York City and the surrounding area for work. You’ll want to consider your investment goals when you’re looking to acquire rental properties. 

At the same time, you want to consider the expenses you’ll be dealing with. This includes property taxes, insurance, property management, and other specific expenses. The location will also play a role in your decision to purchase rental properties. 

You may consider purchasing an apartment building in Bridgeport. This can be great for those looking for an apartment while looking to land a job in New York City. They’ll commute throughout the work week and be able to find a place away from the city. 

One of the critical needs of a potential tenant is to be farther away from the city and its higher rent, so people will be looking for a greener, more spacious environment to live in. Commuters who don’t want to pay a very high amount of rent for a small apartment in New York City can consider cities like Greenwich or Westport.

Excellent transportation network 

Connecticut has a transportation network that includes several highways, trains, and buses. It will be easier to get around thanks to these options. This will be a huge plus for those who commute to and from New York City for work. 

It’s also great for those who like to travel. They will be able to hop on a train for a day trip to New York City. Or they can use the transportation network to easily access one of several airports. 

Summary

Buying a property in Connecticut can be a challenge. However, you have four reasons why you should consider the area to buy a property. You’re in an excellent location that may meet the demands of your potential tenants.

Or you may be someone looking for a place to live for your primary residence. You may be looking for a place to live while you plan on commuting to your job in New York City or other communities in Connecticut. Contact us at BARNES New York today and don’t miss out on the opportunity to purchase property in Connecticut whenever they arise.   

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