New York Property appreciation

New York (Manhattan) property price appreciation history from 1997 to 2009.  Average price per square foot of condo and coop apartments.  Price peak reached in Q1'2008.  Back in 1997, it was only $328 per square foot, increasing to peak of $1289 per square foot in Q1 2008.  

America's Most Overvalued Cities - CNNMoney

America's most overvalued cities - CNNMoney


New York, NY (Manhattan) is shown as one of the most undervalued cities.  This is news.


Related links:
New York Investment Property
New York Property
New York Property FAQ
New York Property Price Appreciation History
New York Property articles and media
New York investment property search
Buying New York property

Manhattan housing inventory - Wall Street Journal report

Wall Street Journal - Change in housing inventory

It's great that they are finally breaking out Manhattan from "New York" because Manhattan has very different fundamentals from New York City in terms of foreclosures and impact of the 1st time homebuyer credit.  Note the 24% decline in housing inventory for Manhattan in the chart.

New York Property

Castle Avenue focuses on New York investment property.  Specifically, investment properties such as condos, townhouses and commercial buildings.  We will help our clients identify the right property to buy, arrange management and handle the eventual sale. 

Our recommendation for your New York property purchase will include appreciation and rental potential, neighborhood growth, yield relative to stocks and bonds and tax implications. The goal is to serve as an acquisition partner to local, overseas and international clients interested in purchasing New York property. 


Related Links
Castle Avenue - New York Investment Properties
New York Property FAQ
New York Investment Property Search
Buying New York Property
New York Property Price Appreciation History

New York Times real estate page
New York Office of real property services
New York City Online Property Register

New York Investment Property

New York investment property is becoming popular especially amongst investors from China and Hong Kong.  This is partly driven by overinflated property prices in China/Hong Kong and desire to take advantage of the US downturn.

By New York investment property, I'm referring to investment properties in Manhattan, New York.  New York City is divided in Manhattan (the central business district), Brooklyn, Queens, Staten Island and Bronx.

The average asking price of a investment condo property in Manhattan, New York  is about $1200 per square foot.  Trades are usually at a discount to the asking price.  The gross rental yield is about 5 percent while the net rental yield (after common charges and tax) about 3-4 percent.

New York investment condo property are popular especially amongst international / overseas buyers because of the simplicity of ownership. Condo ownership requires minimal maintenance as the monthly common charges paid basically covers the required maintenance activities. A tenant or renter who has issues while staying at a condo can easily call the building staff to fix the issue at hand, eg leaky toilet or ineffective heater. Comparatively, if an investor owns a building, the investor needs to address issues like the roof, boiler, heater etc that may need repair.

New York investment property is an appreciation play, not a yield play.  This means the investor buys for value appreciaiton, not to expect a high rental yield. 
 
Here are links to learn more:
Buying New York Property
New York Investment Property Search
Foreign / Overseas Buyer FAQ
New York Property FAQ
New York Property Price Appreciation History
How to find good investment property - MSN
 
Are you ready to buy an investment property - WSJ
New York Investment Properties on Loopnet

Price rent ratio November 2009 - from Calculated Risk Blog

Price rent ratio through Nov 2009 as posted on Calculated Risk.  Shows the ratio close to 1.0, which was the 2000 base year index.  It does say prices expected to drop.   Importantly, note that the ratio has decreased substantially from the peak in 2006.

In Manhattan, New York, price is about 16 to 19X annual rent.

http://www.calculatedriskblog.com/2010/01/real-house-prices-price-to-rent-ratio.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+CalculatedRisk+%28Calculated+Risk%29&utm_content=Google+Reader

Summary of CBS interview with Political Chick, Lisa Chase

Summary of my interview with CBS's Lisa Chase, The Political Chick, this past Monday.  Topic was state of the residential real estate market.

* In terms of US average, prices should decrease another 10%.  Reasons include:
- glut of foreclosures in the pipeline which will decrease average prices
- expiration of the 1st time homebuyer credit
- higher interest rates as the Fed ends it's mortgage bond buying program in March 2010

* However, real estate is LOCAL and hence one should look at price trends specific to one's local market.

* The Manhattan, New York condo residential market has bottomed in real time.  For example, new development condos traded at $800 per sq ft back in Oct/Nov and then increased slightly.  Real estate market reports will take until Q1 2010 to reflect this as these reports lag 3 months (time it takes to close on a property).  The 4Q 2009 report still shows average prices at $1000 per sq ft.  From this, it's obvious that the coming report will show price declines.

* Manhattan is much less affected by foreclosures and the 1st time homebuyer credit.  I do not feel the Manhattan market will double dip.  Rather, the bottom was here and over.  Transaction volume has been surging, a key signal that the market is finding its bottom. 

* The Obama Making Homes Affordable Program was bad economics.  Should never have started.  It's just delaying the foreclosure process as most intended recipients either have incomes that are too low or own properties that are already too far underwater.

* Over the past couple months, there has been a lot of foreign interest looking to capitalize on Manhattan's downturn. 

Best,
Wei Min
Castle Avenue Partners
New York Investment Properties

Interview podcast at chataboutit.com
New York property articles and media
Buying New York Property
New York Investment Property Search


Website:  http://www.castle-avenue.com/
Blog:  http://www.wealthre.blogspot.com/