Saturday, February 9, 2008
video: foreign buyers in Manhattan
I've been away from the keyboards this week, working with foreign investors looking for a building. It's the kind of work that takes a bit more shoe leather than condo sales, so my time has been stretched a bit thin. My assessment of the market right now is that despite the uncertainty about the economy, it has once again heated up in Manhattan. People are looking at the long term strength of New York City and deciding that this is where they want to be. The recent tic down in interest rates didn't hurt either. Investment quality buildings in the five to twenty million dollar price range are few and far between. Amidst the running, I did manage to post some recent articles this week to NewsReal, and came across a video Web log site that covers NYC Real Estate called IntoThe Box.tv, which posted the piece featured here on the strength of the Euro and how it's influencing real property sales in New York City. I'm curious to know what our readers think of the work on this site. I commented on foreign investment a couple of weeks ago when The Corcoran Report was released.
The ability to diversify into Manhattan property is something which Europeans, Asians and Middle Easterners are finding very attractive; but the deals have to work on their own merits too. The discount to the dollar is substantial, but the return is in dollars too, so the risk assessment to be made can be complex. With the dollar trading uncommonly low against foreign currencies it gives them an extra margin of comfort in their decisions. In condos, some are buying pied-a-terres for themselves, which is an easier decision based on need; while others are making traditional property investments and are seeking a return by appreciation over time, or by development. The understanding of the marketplace that a local broker can bring, and an attorney who can navigate our document heavy legal system, can be can critical to making successful acquisitions.