Anyway, I was on the stationary bike and reading Gotham magazine, then came across an article about foreigners fueling the Manhattan New York property market. Hence, I decided to pen something about why clients invest in New York property. Incidentally, I just hung up from a foreign client call as well.
First reason is that New York is a stable market. Investor clients understand that they won't make a killing but they also know this is a blue chip property market where their money is safe with a reasonable appreciation rate. Another such stable market is London, perhaps New York's main competitor for investor clients. The main difference is that London is a lot more expensive than New York.
Second reason is that New York is simply cool to own. It's cool to talk about your New York apartment during a gala as opposed to your Australia apartment which a lot more people (in Asia) would have. I remember when I was a kid growing up in Klang, Malaysia. The cool thing my parents used to talk about was having property in Singapore. The richer parents would have property in Australia. And now I'm getting people to invest in New York. Life is full of black swans.
Third reason can be anything from being the financial capital to economic activity to children coming to the U.S. for higher education.
The market currently is hotter than a year ago when everyone already thought it was hot. But caveat, hot by New York standards means rapid activity with many cash buyers. Not irrational exuberance.
Wei Min Tan is a Manhattan, New York property broker focused on luxury condominiums. His media appearances include being on NBC's Openhouse property show and CNN Money.
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