Buying an investment property in Boston
Investors as two types of people: the first are those looking to purchase one or more units to rent out and generate income and the second are those looking to buy multiple units, perhaps pre-construction, with the idea that they will sell off most or all, once the project is completed.
It is very possible to find investment properties in Boston. Just about every neighborhood is full of potential renters. Rents in the Back Bay and the South End can run anywhere from $1000-1200 for a studio, $1300-$1700 for a one-bedroom, and $2000-$3000 for a two-bedroom, and up. Rents in the outer areas, like Brighton and South Boston, can be less. Due to the large student population, however, rents are still high in those areas, as well as in the Fenway.
The person looking to make some money from buying condos pre-construction has plenty of options. Over the past couple of years, there has been so much new construction, to the relief of many. Prior to this, pretty much your only options to buy in the city were in five-story Victorian homes. Now, however, new construction is popping up everywhere; the majority is luxury and high-end developments.
There are several areas primed for growth. These would be areas where investors might hope to buy low and sell high. Pretty much, the entire downtown area is off-limits – prices are high and new construction is priced at the top of the market. Of course, you can purchase these luxury units pre-construction and hope you can sell once the building is done, and make a profit, but that’s not where the most potential might be.
In the city, there is the potential to make gains in neighborhoods such as East Boston and Dorchester. South Boston is pretty well along in its renovation and revival, but there is room for growth, there, too.
People always ask about the South End and the “Washington Street” corridor. That area has already been revitalized. If you are a first-time investor, drive down that street. See how it is alive and full of people. Now, imagine it twenty years ago, with the Orange Line subway trolley overhead, and bare, open spaces with chain-link fences and decrepit buildings.
Ask yourself, are you really the type of person who is willing to take a chance on something like that. If so, buying an investment property might make sense.
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Updated: November 2017
