Young professionals and blue class workers are fueling what’s left of the real estate market in New York City (with the exception of Manhattan). Nationwide (including the boroughs) real estate prices have been declining for most of 2007. This is primarily caused by delinquencies in mortgages made over the past 4 years to subprime and no income verification borrowers. Increased foreclosures combined with tightening mortgage underwriting standards have drastically increased the inventory of homes currently on the market.

In addition, this past summer’s mortgage meltdown has made securing a Jumbo mortgage much more difficult. A Jumbo mortgage is one that is larger than the conforming loan limit of $417,000. Since New York City real estate prices are in many cases higher than $417,000, sales have lagged due to buyers having difficulty qualifying for Jumbo mortgages. All of these factors have contributed to “the bubble finally bursting”.

There has been however, one sweet spot in the New York City real estate market. Affordable living is making a comeback. Smart developers have stopped over building million dollar houses in middle class areas and instead begun developing affordable condo apartments throughout the boroughs. Studio to 3 bedroom apartments can now be bought from the high 100,000’s to the mid 300,000’s.

Some of these condos have been gut renovation conversions of apartment buildings like Zinfandel Condominium in Crown Heights and others have been ground up new construction like 580-586 Van Siclen Avenue Condominium in East New York. Affordable condos are the hottest area of New York real estate right now. Many developers who were building 3 family houses throughout the city have now decided to convert the complexes into condominiums because of the current market condtions. It is more profitable for the developers and more affordable for the end buyers.

For example, a 1 bedroom condo at Zinfandel Condominium is priced at $237,000 which is actually cheaper than renting a similar apartment when the income tax deductions are taken into account. Renting a 1 bedroom with hardwood floors, granite countertops, stainless steel appliances, a video intercom system, recessed lighting and internet connections prewired in the walls can easily run upwards of $1200 to $1400 a month in Crown Heights (if there are any available). Owning the condo can cost as little as $1060 per month with the tax advantages and only 5% (aprox 12,000) out of pocket.

Owning instead of renting is the first step towards financial freedom. Renting only gives a landlord a mortgage interest tax deduction and the tenant a rent increase each year. Plus real estate will appreciate over time so it is a great long term investment. With the recent slowdown in the real estate market combined with many people who have recently lost their homes to foreclosure entering the renters market, rents have begun dramatically increasing as the citywide demand for apartments increases.

Since, internet has become the biggest resource for vacation rentals across the globe, the advertisement modes have also evolved over the past few years. Many vacation rentals sites offer free listings for limited periods like 3 months or six months. Many websites also give you free listings on a percentage of the rent proceeds when rented. Holiday home listings are also available for off season renting and offer free listings. Travel directory listings can be a great help while looking for free advertising listings. Using the travel directory listings you can advertise only at those pages where your vacation rental belongs to. Another innovative and imaginative way to advertise your vacation rental is through blogging and travel forums.

As a vacation rental owner, advertising on the internet is very easy and also free at most websites. One could begin by writing a good descriptive and informative paragraph about the vacation rental available. The description or the listing should have a catchy headline that catches the reader’s attention. Something like “In the very heart of nature” or “The sandy tan paradise” etc. The reader should be fascinated by your headline. The description itself should contain details about the number of bedrooms, equipment installed, furnishings etc. Your description should make your vocational rental stand out in the crowd of other advertisement sin the same category. Always highlight things like saunas, swimming pools, tennis courts etc. They help putting your advertisement in the luxury class and obviously fetch you better rentals.

There is no one better to write your advertisement, since, as the owner, you would be best informed about the property. It is just a matter of expressing the same to the prospective renters. Many a vacation rental web sites also help by giving you the option of dedicating a web page to advertise your property. In case you opt for a larger advertisement or a webpage itself, make sure they contain good quality photographs of your rental property. Pictures speak better and more efficient than words.

Make sure you describe the common areas, kitchen and bedrooms in such a way that the renter can visualize them beautifully in his/ her mind. If your property is stand-alone like a condo, cottage or a villa, the pictures of the exterior can set it apart, especially if you can capture the docks or swings or saunas. If it is on a beach, you can have a picture of the beach front that the renter can use. Take your own time and come up with the best description you can, since first impressions are the last impressions.

Since you are already into vacation rentals, you can request your old customers to give you honest testimonials that can be used to post on various blogs and forums related to places where your vacation rentals are located.