Yahoo Finance This tiny 77-square-foot NYC apartment spurred a bidding war that pushed rent to $2,350/month — and it has no bathroom. Why prime real estate remains the best long-term hold
New York City residents may have long resigned themselves to paying exorbitant prices to live in cramped quarters — but this recent example takes the cake.
A pocket-sized studio on West 11th Street in Greenwich Village went viral after real estate agent Omer Labock presented a tour of it on TikTok.
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“This has to be the smallest apartment I’ve ever seen,” Labock, who works with Douglas Elliman Real Estate, says in the video. The space is less than 7 feet wide and 11 feet long, according to NYC newsroom Gothamist, and includes a very tight closet and a little kitchenette with a mini fridge and sink (but no oven or stove).
The bathroom lies across the hall — and is shared with four other units in the building.
But the most shocking detail is the price tag. The apartment was listed for $1,975 a month in December, says Labock, but several sources report it was later listed for $2,350 a month.
“2k for a closet! nah I’m good,” writes one aghast viewer, while another likens the pint-sized pad to a prison cell.
Here’s why this miniscule abode doesn’t come cheap — and why investors should pay attention.
Why investors still like prime real estate
The super-small studio reportedly sparked a bidding war. A big part of that is due to location: you’ll find the space in the much-coveted and trendy Greenwich neighborhood, where the median rent tracks upwards of $5,000 a month, according to Realtor.com.
Gothamist spoke to a Pace University student who was set to place a bid on the place, but requested to remain unnamed because he didn’t want to risk his chances of landing the rental.
“If you want to be on a prime block of the city, it's like, you can't have everything,” he said.
While the stock market has certainly seen its fair share of ups and downs — keeping many investors wary — real estate in desirable locations like NYC and Miami are still a steady bet.
In fact, prime commercial real estate has outperformed the S&P 500 over a 25-year period.
That said, not everyone’s ready (or wealthy enough) to snag an expensive studio downtown, or deal with the hassles of landlording and managing tenants. Here’s how you can get into real estate without having to become a landlord.
Read more: Americans refuse to let higher prices derail their travel plans — 10 tactics to keep your summer vacation on budget
Put your money in a trust
Real estate investment trusts, or REITs, invest in various property types — from residential apartment buildings to commercial spaces, like offices — and are typically publicly traded like stocks.
They also mix assets and locations, so you’re not only investing in tiny condos in the Big Apple, for example, and you’re not subject to any regional downturns in the market. And if you’re looking for something more specialized, some trusts will target certain sectors, like luxury real estate or the U.S. government](https://moneywise.com/investing/stocks/reits-that-rent-to-the-us-government).
Invest in ETFs
Exchange-traded funds or ETFs are bundles of stocks, bonds or other investments, and also trade on the stock market.
You could invest in real estate ETFs which can track real estate development companies, homebuilders, property managers or brokerages.
Pool your funds with others
Crowdfunding platforms raise cash for investment opportunities, like real estate. Investors can contribute their money to a pool shared with other investors in order to purchase property or a share of a property as a group.
Some platforms are targeted toward accredited investors and require a net worth of more than $1 million or an earned income that exceeded $200,000 (or $300,000 together with a spouse) in each of the past two years.
But others come with a much lower barrier to entry — and may even let you start investing with $100 at a time.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
