New York real estate
New York is considered the capital of the world. Financial Center to Wall Street, the Guggenheim Museum and the Metropolitan, the world’s designer boutiques on Fifth Avenue, Broadway and unique architectural delights - diversity of this city is amazing.
Located on the Atlantic coast in the south-eastern part of the State of New York, the city is divided into 5 administrative districts: The Bronx, Brooklyn, Queens, Manhattan and Staten Island.
City, often referred to as the Manhattan of its inhabitants, is the historical city center. Here are the famous skyscrapers Empire State Building, Chrysler Building, “Iron” and others, the theater district on Broadway, “Museum Mile on Fifth Avenue, Chinatown and the largest in the world of Central Park.
All this, as well as the picturesque location of the area and comfortable weather conditions make real estate in New York is very attractive for investors.
But how much real estate “Big Apple” is reliable in times of economic crisis? Some experts argue that the price floor is not covered, and predict a further fall in property prices in the U.S., arguing that it was premature to talk about the end of the financial crisis. Others, recalling the positive macroeconomic data on growth in the number of permits issued for housing in the second half of 2009 (an indicator of future activity in the construction market), as well as construction companies income growth from sales of real estate, said the turning point in the market. But they both operate on average for the country or around the state, losing sight of the individual regions, where due to geographical, historical, social and other reasons, there can be no strong fluctuations in the value of the property. With full confidence we can say that New York, along with some other major cities in the U.S., remains a kind of an island of stability.
Despite the fact that the systemic adverse changes in the economy of the country still had an impact on the real estate market in New York, the average decline in property prices in this region for 2009 did not exceed 15%. Experts MIEL Distant Property Management »note that for the city this fall, definitely noticeable - are real estate prices have always had a tendency to increase. But the situation is beginning to change.
Sales in the second half of 2009, compared with the first half, taking into account the seasonality has increased on average by 15%. And the increase in demand always leads to an increase in the offer price. Also in the U.S. is very high inflationary expectations: the U.S. Federal Reserve during 2009 consistently reduced the discount rate, and at present the rate can be considered as zero. This means that there is a “printing money” to, inter alia, to stimulate the mortgage activity of commercial banks. But we should not be a guru in the economy, to understand that the uncontrolled emission of money sooner or later lead to inflation. This, in turn, lead to an increase in property values.
Thus, investment in real estate - the most judicious investment of money, especially for the Russians. Historically, many Russian citizens keep their savings in U.S. dollars. And most importantly, the lion’s share of Russia’s GDP is formed by energy exports, which are also denominated in U.S. dollars. What will Russia do when, for example, its oil will get suspended the same $ 75, but not for 29 rubles. per dollar, as for example, 20. The answer is obvious: the CBR will artificially lower the rate of the ruble to the budget of Russia and the oil companies are not affected. Therefore, to keep their assets, both in rubles and in dollars or in any other currency, at least, unwise.
According to Natalia Zavalishin, Director General of Miel Distant Property Management », -« the most reasonable to invest in real estate in stable or promising regions, among which is certainly true of New York. Besides, buying real estate in New York, there is no need to lose in the translation of dollar savings in any other currency. ”
High liquidity of real estate in New York makes it a flexible investment tool that allows virtually any time, at least to return his money, and likely to get at a profit. This, in modern terms, a more reliable option of placing funds than bank deposits, mutual funds and other financial instruments. Of course, the choice of objects is desirable to consult with professionals as well as the potential of real estate in the city varies somewhat depending on the district and each building. For example, experts MIEL DPM »help assess the investment potential of each individual object and uberegut from unnecessary risk in the transaction.
Obviously, the most attractive from all points of view area is the Manhattan (City) - the island from which the once and started New York. Despite the fact that the City - this is a historic center with an established infrastructure, you can meet some very interesting proposals on the market.
In conclusion, the experts MIEL DPM »7 factors distinguish the attractiveness of New York at the moment:
1. This is the biggest business and cultural center of the world.
2. Speaking of Manhattan, due to geographical features (an island), it is impossible to increase the supply of real estate. It is likely that in Manhattan repeat scenario of Monaco, where the average cost per square. m. of housing has reached 30 000 euro.
3. Right now, sellers of the most flexible in bargaining. Discounts may reach 10-15%. Such a favorable situation is again in 10-15 years. And far-sighted investors accumulated funds, attacking such regions.
4. Many experts believe the real estate market in New York, this diversity offers in the foreseeable future will be no more.
5. Besides the actual investment is a good place for all those who think about the future education of children.
6. Greatly reduced interest rates on mortgages. And Russia’s citizens have the opportunity to receive credits equal to 50% of the value of the property for 20-25 years at a rate of 4-5%.
7. The prestige of owning real estate in Manhattan is indisputable.