Schenectady tops for private realty investors
October 23, 2013 by John
A recent report from a property company has rated Schenectady County as the eighth best place for private rental returns on single family homes.
The report, by Realty Trac, puts the county in the top 10 on gross rental yield. According to the firm’s ‘hidden gem single family rental markets’ list, the gross yield on tenanted single family homes hits 10%.
The figure is determined by dividing the annual income in rent by purchase prices, or the current market values, of three bedroom single family homes in an area.
In Schenectady County, such properties have a median value of $153,000. Against this is the median annual rental value of $15,336, or $1,278 a month.
Realty Trac, which trades in distressed properties, restricts the compilation of the list. Qualifying counties need to have an unemployment rate of 7.5 per cent or below, a population of 100,000 plus, and less than 5.1% of institutional investor residential sales in the reporting period.
The most recent list has been compiled from statistics gathered at the end of July this year, at which stage there were only 2.2% of institutional investor purchases, while unemployment remained at 6.9%.
The report, compiled to show counties where institutional investment is not dominant, makes for good reading for private investors. However, ensuring good agents and printing services are used to get the best tenants in can help good yields be achieved.
Other New York counties also did well, with Onondaga and Tompkins also ranking in the top 10.