Benefits of Investing in Back Bay Brownstones
Boston a city that hosted several of America's founding fathers is known as home to most of the country's historical monuments. A majority of the people and investors appreciate the idea of being associated with the historic district. As such, they are ready to pay a significant premium for iconic structures like the Back Bay Brownstones properties.
While there is an incredibly limited supply of such properties, over the years, the demand for brownstone properties continues to surge. Upscale markets are now embracing the development of high-rise condos, but it has not eliminated the need for the characteristic brownstones that define the city. The text below highlights some of the benefits of investing in Back Bay brownstones:
Long-term Investment
Whether you are considering the purchase of a renovated brownstone in a converted maisonette in Back Bay or a Victorian row house in South End's high-end neighborhood, it is a long-term investment. As such, it requires budget and lifestyle considerations, especially if you are looking to buy brownstones that need renovation.
First-time buyers prefer purchasing starter homes, say a brownstone, as it offers a generous square footage, is located in a high-end neighborhood, and requires minimal maintenance. These factors do not exclude first-time buyers from buying brownstones. However, committing to buying brownstones is not a short-term investment. Thus, buyers who are planning for short-term occupancy, say, less than ten years should consider purchasing a condo. Essential factors to consider when buying a brownstone include:
- Whether you are staying in Back Bay for the long-term
- Are you planning to raise kids in the new home?
- Will work take you elsewhere?
- Do you like DIY projects?
Lower Taxes
Property taxes for brownstones homeowners are usually lower than those charged on other real-estate investments. Single-family units such as brownstones and buildings with less than three units are assessed at 3.5% while multi-unit apartments are charged as high as 11% of their value. In 2015, for example, property taxes were increased for all types of residential houses, but single-family fees experienced the lowest hike of 1% only.
Two-family brownstone units had their taxes increased by 8% while three-family unit owners paid 11% in property taxes. As at 2016, the Department of Revenue in Massachusetts published new property tax rates for Back Bay's 341 of 351 municipalities that prepared homeowners for a tax hike of 3.5% only. Another advantage of owning a brownstone home is that you don't have to pay the monthly maintenance fee that is also known as standard charges that add to the annual expenses by up to $20,000.
Convenient Location
Back Bay Brownstones are conveniently located, offering residents access to lots of dining, shopping, and entertainment venues that are located in immediate neighborhoods like Copley Place, Prudential Center, Newbury Street, and Prudential Center. Individuals in employment also get to arrive at their areas of work on time using Back Bay's transportation options. It is an aspect both developers and tenants factor in when buying or renting property.
Privacy and Autonomy
Owning a brownstone in Back Bay also saves you the daunting task of paying maintenance fees that are charged in other establishments. Additionally, you are entitled to lots of privacy as you barely deal with obstructive neighbors. You are your boss and don't have to adhere to painstaking rules about smoking, pets, quiet hours, or bike storage. Most condo buyers feel hampered by the building's restrictions on guest policies, outdoor space usage, pets and the like.
An Increasing Demand and Prices
Boston city is experiencing a surge in its population, hence the booming real-estate development. Back Bay has particularly seen an increase in growth with lots of upcoming large-scale constructions across all sectors: residential, office, institutional, educational, cultural, and institutional. It explains the continuous demand for Back Bay's Brownstones and high-end condos. What's more, Back Bay's low vacancy rates make the market lucrative for developers looking to buy. Low vacancy rates, coupled with an increasing population, leave moderately priced markets under-supplied. All these factors come into play for any developer calculating his return on investment.
Appreciation of the Value of Property
The surge in demand for brownstones in Back Bay has spawned an increase in property prices to figures as high as $ 2.8 M and above, making it an excellent investment opportunity for developers. Additionally, existing apartments are required to update their rates and services, and perform renovations or implement an entire condo conversion to match up the current property prices.