If trends always revert to the mean (go back to normal levels), the current price to rent ratio would have to go down to closer to 16X. This means either
(a) rental prices in New York are expected to rise which is quite likely since rents have been stable for a while.
(b) sale prices decreasing but I personally feel that's less likely since sale price appreciation has been going up consistently along with inflation, not going up in outrageous fashion.
Wei Min Tan in Managing Director of Castle Avenue Partners, focusing on foreign buyers interested in buying Manhattan, New York property. He has appeared on CNN, New York Times and the Wall Street Journal on the topic of foreign buyers of Manhattan property. Wei Min speaks Cantonese Chinese, Malaysian and conversational Mandarin. He can be reached at tan@castle-avenue.com
1 comment:
Renting over buying has been one of the debates even for those new york real estate ce professional as to what is mostly or the best option - to own a house or to rent a property instead. With a lot of people having different preferences on either owning or renting out, what matters is the everyone's interest is protected and given their chances to live a safe and sound life having a shelter to stay with.
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