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Is this not true for many major metros not only in the US but all over the world? I am sure Hong Kong, Tokyo, and Sao Paolo have many foreign buyers. This is just another aspect of the economy going global. After all the domestic corporations go global, and have foreign shareholders, there is nothing else to buy up except the real estate.
money loves a vacuum and will always be sucked up where value is perceived. that is until it becomes the bigger fool theory like the japanese found out and then things don't usually fall much they just slow down until things catch up.
even in total financial chaos like we had in 2008-2009 at the peak of the blood bath we sold not one but 2 of our central park co-ops for only 10% less than the record high.
it did take 6 months for both buyers to get a bank to come across with the financing even though it took trying multiple banks that pre-approved them to actually give them the money.
both had 2 previous banks deny the money in the end saying they had none to give.
those were some of the worst of times but manhattan real estate really stood up well to it for many reasons. nyc just bucks most trends the rest of the country see's , it is its own economy.
but in reality this country is actually made up of 1539 mini economies . what goes on in some rarely goes on in all .
that is why when we look at cpi numbers we go wtf.......
Last edited by mathjak107; 10-12-2014 at 02:57 AM..
RE pricing in NYC is a bargain compared to other developed asian cities despite that NYC has much more potential and influence as the center of the earth planet. Many ppl told me that nYC RE will never crash no matter how high it climbs. I doubted it 3 years ago but now regret it.
unless crimes reach the level as seen in detroit, nyc will continue to lure ppl from all over given its history, fame,culture and natural charms.
in my lifetime time only once did i see a big correction in nyc and that was following the stock market crash in 1987.
manhattan recovered faster than the boroughs did. i had just bought my first investment co-op in kew gardens two weeks before and when the smoke cleared i was down 20%.
in my lifetime time only once did i see a big correction in nyc and that was following the stock market crash in 1987.
manhattan recovered faster than the boroughs did. i had just bought my first investment co-op in kew gardens two weeks before and when the smoke cleared i was down 20%.
it took quite a few years to come back.
that was pre cold war when nyc RE was probably still subject to market economy rules. but after SU collapsed many rich russians flocked to buy up nyc and their holding to NYC houses does not conform to any market volatility. now you have a lot of asian/south american riches who inject their generational funds into the RE market who will probably never sell them again, future supplies will be always tight and limited no matter how the economy moves.
we had japan buying everything in sight back in those days.
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