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If so many people are leaving NYC wouldn't real estate prices be tanking?

Posted 05-12-2020 at 11:47 PM by Sebb

Originally Posted by IForgotMyOldAccount View Post
The answer is no if you look at the data. Metros in general will demand high prices and laughably some sales are breaking records during this crisis. A major deal was recently done in Texas May 2020.
  • A luxury town home just recently sold for 31m in NYC.
  • Tower 333 building just sold for $400M in March Seattle
  • 1031s and sale leasebacks gunna be popular
  • Currently, foreign investors are buying luxury condos in NYC to diversify assets with cash...

When determining market value of a property, people are factoring potential cash flows and a lot of good will even if property not in use cuz contracts. In simple terms, if the current lease of an office building is Amazon and the building is up for sale, b/c property has 100% occupancy (Amazon usually leases the whole building or half) seller will jack up the price due to guaranteed cash flow.

If foreigners are showing up with $6,000,000 in cash to buy a 2 bedroom flat, every other broker/developer is going to want a $6,000,000 instant influx of capital. Basically prices stay the same or increase. I think iunno 40% of luxury homes in NYC vacant for like 5 years now sumtin like that. This trickles down all the way to the $700,000 NYC homes. Remember 3 in 10 NYC households make 6 figures. Combine that with the limited housing supply = high prices are here to stay.

Business that are over leveraged aka took on too much debt to acquire properties are semi ****ed. Govt. recently passed a bill for developers about taking loans. Iunno not my gig, but basically you have to follow a lot of rules for example if you sign up you can't raise rents for five years and some units must be affordable blah blah blah obv I switched to Multifamily now.

Real estate values bloated since a decade ago hence why 1031s popular. As of right now, if peoplewith bags of money are willing to buy up properties in the US with bags of cash then guess what prices wont fall. A lot of modelling goes into determining the value of a real estate asset, but in all honesty people literally just pick a number of what a similar property in the area sold for and roll with it.

Obviously this person has a vested interest in NYC real estate . Probably a Real estate broker ? Dead profession nobody needs advice from a Snake oil salesmen anymore. Please find a new career.
Definitely don’t have to be a real estate agent to realize NYC real estate will be dropping by large % going forward. Please don’t try to Bully anyone.
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