Long-Term vs Short-Term Investments: Which Strategy Is Better for CRE Investors in NY?

If you’re planning to invest in NY commercial real estate market, you have two choices: rent or sell. The former is a long-term investment strategy that allows you to build equity over time, while the latter is a short-term investment strategy to earn quick profits. Which strategy is better for CRE investors in New York? Let’s find out!

Short-Term Investment Strategy

A short-term investment strategy is an excellent option for investors operating in the seller’s market. In seller’s markets, commercial properties are scarce, and CRE owners can keep prices high for higher property sales returns. In such cases, commercial investors can buy property, make renovations, and sell it at a higher price to earn a quick profit.

The New York CRE market remains an attractive investment choice among local and foreign investors. In the past, many investors have made a fortune flipping commercial properties. But recently, the glut of supply makes NY CRE market a less viable choice for investors looking to get substantial financial returns in a short amount of time.

However, there are some opportunities available for investors who prefer the fix and flip strategy. For instance, the rise of shared workspaces and the remote working trend has forced businesses to rethink their office space. Investors can convert traditional office spaces into co-working spaces for entrepreneurs, freelancers, and remote workers to generate excellent ROI.

Long-Term Investment Strategy

A long-term investment strategy is a suitable choice in both buyer and seller’s market. Investors can hold CRE to earn monthly rental payments while their investment keeps growing with capital appreciation. It’s a preferred method for investors who are looking for long-term wealth generation.

The current NY CRE market conditions are ideal for long-term real estate investments. As the  CRE transactional activity trended negative due to the COVID-19 crisis, CRE property prices saw a decline. Investors who plan to buy and hold CRE properties in the long-run can earn substantial returns in the long-run.

About Global Capital Partners Fund

Global Capital Partners Fund is a private lender that has been operating in the industry for over three decades. Based in NYC, the company offers an extensive range of financing solutions to help investors capitalize on lucrative deals available in New York CRE market. To learn more about their services, call at +1-800-514-7350, or visit their website.

Categories: Real Estate

Leave A Reply

Your email address will not be published.