So fellow CD'ers what is the furure of NYC real estate? (to rent, hairstylist)
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Yes all cash investors, oftentimes from outside the area/country, are the ones moving the market not just in NYC but in other coastal areas of the country (Miami, SF, LA, DC, Boston, etc). If you want to compete, and NYC loves to compete, you better show up also with an all cash offers for prime properties.
The influx of suitcases full of cash is making it very difficult for regular people, those who require financing, to step into the market. I do not see this getting any easier for regular people..which is why many are simply moving into the boroughs and buying up property ("gentrification').
Yes all cash investors, oftentimes from outside the area/country, are the ones moving the market not just in NYC but in other coastal areas of the country (Miami, SF, LA, DC, Boston, etc). If you want to compete, and NYC loves to compete, you better show up also with an all cash offers for prime properties.
The influx of suitcases full of cash is making it very difficult for regular people, those who require financing, to step into the market. I do not see this getting any easier for regular people..which is why many are simply moving into the boroughs and buying up property ("gentrification').
It is not only "investors" coming to NYC with "all" cash, but simply normal persons or families that do not want to bother with a mortgage and or are in a position to strike while the iron is hot as it were. You see this all over the country as supply dwindles in many areas of the country and people are gazumped.
On any given Sunday in the real estate section of the NYT you'll see singles, couples, and families straight and gay that purchased residential real estate with cash to live in, not as an investment. These funds can come from investment, sale of another property, savings, etc....
In a market like we are seeing in Manhattan, San Francisco, Boston, etc.... anyone with cash that can close on a deal *NOW* is going to have a leg up over those that are dealing with financing, that is unless they are pre-approved with a rock solid rate.
Unless you want to take the bus up Myrtle or DeKalb to Atlantic Avenue (or walk/take a taxi), yes public transportation in CH isn't that great.
And forget about the C. You'll see like 5 A's go by before one comes. The nostrand A stop is much more convenient. People in Clinton Hill are getting ripped off.
And forget about the C. You'll see like 5 A's go by before one comes. The nostrand A stop is much more convenient. People in Clinton Hill are getting ripped off.
One of the reasons more than one of our friends who lived out in CH moved back to Manhattan was the lack of public transportation. One girl in particular started working two jobs and or going to school after her day job and just couldn't hack (or feel safe) the commute back home. She would take the IRT to DeKalb and walk down to Washington Avenue via Fort Greene, or wait for the bus. This was back in the early 1990's and she really didn't feel at all safe.
Then there was the fact if you wanted to go out "clubbing" or whatever in the City it was a royal PITA getting there and even more finding a way home. You can take a bus or whatever up to Atlantic and always catch a cab into the City, however back then taxis just didn't want to make the trip into Brooklyn in the wee hours/over night.
Pity there isn't a subway that runs down DeKalb towards Broadway.
Its only a matter of time before the feds raise the rates.... check NYT and CNN
This is very true. From what I hear that next year the feds will raise interest rates. This is not good news for property owners, those who are looking to buy property and those who own stocks and shares. By next year those will have to cash out or stand to loose everything. Also gentrification will begin to slow down in the coming years thanks to the feds raising interest rates. Rental prices will stagnate and fall along with property values. If anything at least the average New Yorker can breath a sign of relief when the feds raise interest rates, those with assets like equity and stocks not so much. Some guy even told me by next year invest in corporate, federal and municipal bonds when feds raise the interest rates. I a,gree with you popfizz
Its only a matter of time before the feds raise the rates.... check NYT and CNN
The fed does not control the mortgage securities markets. They can try to influence the direction of rates by buying or selling secuities to try to get the worlds investors to move in lockstep.
The bond markets represent 100 trillion dollars in potential bond trades . The actual trades run about 1 trillion a month.
The fed at the peak was buying 85 billion. That is peeing in the ocean if the worlds bond investors see things differently and do not follow the fed.
The only rate that changes when the fed says they are raising rates is the over night rate that banks can borrow from each other called the fends fund rate or the rate the banks can borrow from poppa fed called the discount rate.,
all other rates are set by investors and they do not always agree with fed policy.
AS FAR AS IF RATES RISE? RATES WILL ONLY RISE BECAUSE THE ECONOMY WILL BE DOING BETTER. that is a good thing and for real estate to take off we need that.
the best appreciation is when mortgages are in the 6-8% range because in order to be there it means people are working ,the economy is humming and folks develop the old we better buy now before we can afford even less house kicks in and all that puts pressure on prices to rise. it alway has.
This is very true. From what I hear that next year the feds will raise interest rates. This is not good news for property owners, those who are looking to buy property and those who own stocks and shares. By next year those will have to cash out or stand to loose everything. Also gentrification will begin to slow down in the coming years thanks to the feds raising interest rates. Rental prices will stagnate and fall along with property values. If anything at least the average New Yorker can breath a sign of relief when the feds raise interest rates, those with assets like equity and stocks not so much. Some guy even told me by next year invest in corporate, federal and municipal bonds when feds raise the interest rates. I a,gree with you popfizz
everything is relative. higher rates usually are higher because we are seeing either higher inflation or the expectations of higher inflation. . sure rates can rise but being joined at the hip to inflation your real return can still be no better and still negative.
when we were getting 5% when we had inflation running 4% coupled with taxes still was a negative return.
more often than not when inflation is figured cd rates are usually around a real return of 1 to 2% before taxes but we had as many negative return rates as positive ones.
as far as muni bonds even if rates rise on them and they will only do so if investors bid them up not the fed policy , you woud have to go out 20-25 years in time at these historically low levels or buy a bond fund to see much yield . shorter term bonds yield little in comparison.. any rate rises will be slight over the next few years.
in any case unless you want to sit for decades you will lose money if rates rise and you need to sell befors .
if you decide to wait 20-25 years and inflation has stayed even 3% you lost 1/2 your purchasing power upon pay back .
something to undertand about buying bonds.
Last edited by mathjak107; 03-27-2014 at 02:36 AM..
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