Real Estate Confidential is a weekly chit-chat about new listings, sales, or other insider info on the Martha’s Vineyard Real Estate market, presented by Fred
With high taxes and expenses, is it even worth considering investing in multi-family real estate in Long Island, NY?
What does it tell you that people are willing to pay high taxes and have high expenses to live somewhere? It is a sign that people want to live there. If real estate prices were plunging that would be a sign that something was inherently wrong, and that people were fleeing the expense. That’s not the case on Long Island, although individuals do get priced out. Long Island has well-established commuter neighborhoods feeding New York City. Its higher taxes often go to pay for relatively good public schools, there exist good state services, including police, there is a high density of quality medical care, major universities and research facilities. Some of the wealthiest towns in the United States are within easy commuting distance of New York City.
When the real estate bubble burst in 2008, Long Island real estate prices held up extremely well compared to parts of the country that had experienced rapid growth in housing prices, but had low taxes and low expenses. Then prices on Long Island recovered. Others haven’t. What does that suggest to you?
I can’t comment on whether multi-family real estate is a good investment or not, but I think if you are taking such a narrow approach to the analysis of this asset class you probably should educate yourself a bit more on the factors of return before you plunge in.