Thursday, December 30, 2010

Luxury residential property, flats in New York

Luxury residential property and flats in New York are in demand by global investors because of the stability of New York residential property and relative value globally.  While Manhattan is the most expensive market in the US, it's a lowly #10 globally in terms of price.

Foreign investors interested in luxury New York property/flats should consider the three points below:

1.  Select a good agent to filter the flats/property.  You can't rely on your own web search of properties from thousands of miles away.  In the US, agents have access to a database which means as long as they are part of the property trade association, they have access to all properties on the market.

2.  Learn about issues such as taxation.  This can be through the right lawyer and accountant that your broker could recommend.

Residential property, flat price trend New York

Residential property (flat) price trend above shows stability of flat price in New York even during the 2009 economic crisis.  During the 2009 downturn, the average property price in the US decreased by 35 percent.  However, the average flat/residential property in New York decreased by about 20 percent.  Manhattan New York has since rebounded from the low of 2009.

The average price of a residential flat in New York is $1095 per sq ft as of Q3 2010.

Visit us at Castle Avenue Partners - Manhattan investment property

Saturday, December 25, 2010

Hong Kong vs New York Property

Hong Kong vs New York property

Price appreciation:
New York is a stable, 10% per year average appreciation while Hong Kong can go up or down 40% a year.  New York is safe, Hong Kong provides more adrenalin.  Don't buy in New York and expect to flip in 2 years.  One should have expectation to hold at least 3-5 years.

How to select New York property agent

Manhattan, New York property agent - investment from Weimin Tan on Vimeo.

How to Select a New York Property Agent

Until 2 years ago, I was an active property buyer in multiple cities.  A challenging issue was selecting the right property agent.  A referral helps dramatically but even so, there may not be a fit. 

Friday, December 24, 2010

Hong Kong, China buyers investing in Manhattan

I'm currently writing from Midlevels in Hong Kong, enjoying the cool winter weather on Christmas day.  Some property notes when comparing Hong Kong/China vs New York.  

- South China Morning Post reported that Beijing, China appreciated the most last year, 40%.  Hong Kong 17%, Manhattan 10%, London 20%.

Sunday, December 19, 2010

Manhattan median price growth #1 in nation

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Manhattan, New York is #1 in the US for median home price growth from 2005 - 2009.  The median value jumped by $350,600 per home between 2005 and 2009 to $800,400, an increase of 78 percent.  This works out to an average of 15.5% per year.   

Visit us at - Manhattan investment property

Commercial real estate outlook

Commercial recovery on the way
1.  Economic Expansion - US adding 1.2 m private sector jobs
2.  There's no firesale for quality assets
3.  Low interest rates.  Historically high 480bps spread.  This is the difference between property cap rate (currently 8% US avg) to the 10 year Treasury which is the benchmark for property returns.  Strong signal to buy.
4.  Apartments are a safe bet, followed by retail but higher risk.  And hotels will definitely pick up!

Visit our website  Castle Avenue Partners - Manhattan investment property

Friday, December 17, 2010

Roubini buys $5m Manhattan condo

Roubini Buys $5m Manhattan penthouse condo (Curbed)

Nouriel Roubini (Dr Doom) is perhaps the most bearish economist of all.  Predicted housing fall in 2006 and now world famous.  Said US will have double dip etc etc...

Anyway, he just bought a $5m Manhattan penthouse condo!

Tax Bill - what it is

(Reuters) - Congress approved an $858 billion tax deal between President Barack Obama and the Republicans that will boost the economy but add to the budget deficit.

Following are key components of the bill. All cost estimates are from the congressional Joint Committee

Sunday, December 12, 2010

World's Most Expensive Property Markets

In my prior blog post, Manhattan is the #1 ranked world's best property market as ranked by Citi Private Bank and Knight Frank.  In terms of the most expensive property markets in the world, Manhattan New York is ranked a lowly #10 as the table above shows.

Hence, Manhattan is the world's best property market and yet ranked only #10 in terms of price.  That makes it a good value, doesn't it?

Visit us at Castle Avenue Partners - Manhattan investment property

World's Best Property Markets

Citi Private Bank and Knight Frank ranked Manhattan, New York the world's best property market out of the top 50 global cities.  Based on the four factors as shown above - economic activity, political power, knowledge and influence, quality of life.    

Saturday, December 11, 2010

China over-dependent on property, no demand

Quite a long video.  Summary:
1.  60% of China's GDP driven by real estate construction.
2.  They are building property at US prices that people can't afford, sitting empty.
3.  Consumption is only 5% of GDP

Bottom line - China is over-reliant on construction which has no demand.  Problem........

Friday, December 10, 2010

Frank Gehry, Beekman Tower at 8 Spruce Street

Who is Frank O Gehry?  What’s up with this guy and his organically shaped Beekman Tower just south of City Hall or the sweeping curves of the IAC Headquarters Building in Chelsea?  Does he just take a piece of paper, crumble it up, stand it on end and say “there it is”?

Saturday, December 4, 2010

Risks, disadvantages, problems Manhattan New York property

Here are the downsides - risks, disadvantages, concerns, problems - associated with owning property in Manhattan, New York.

1.  Tying up capital, at least $150K for an entry level studio to millions for buildings.

2.  Don't expect to flip in 2 years.  Manhattan doesn't appreciate 30-40% per year.  It's not an emerging market.  You should expect to hold for 5 years.

3.  Vacancy is expensive because of carrying cost, repainting and repairing this and that, broker fees associated with re-marketing.

4.  Get a good tenant by doing the proper reference checks.  In New York City, eviction will be time consuming and expensive.

Our website Castle Avenue Partners, Manhattan investment property