In the mid 2000s, particularly the period between 2003 and 2008, the hurry to buy New York City real estate was almost comparable to the California Gold Rush of the mid 1800s. As we know, everything then changed at the end of the last decade; after the 2008 financial crisis the real estate market tanked.
Nowadays, after a period of stabilization, there are several trends to note: home values are not declining anymore and had a tendency to go up in the last year; rental income is climbing; mortgages are more obtainable; and low interest rates are bringing small and medium investors to consider once again buying a piece of the Big Apple.

The trend, during the boom, was to buy and sell quickly to achieve an almost immediate payout; also known as flipping.
Today the strategy has generally changed. Many invest for the medium to long term in order to benefit from the rental income generated by the property, and eventually they will sell down the road.
For this reason, it is increasingly popular amongst investors to acquire real estate that is already rented out so that they minimize the risk that the apartment will sit vacant, and they can access an immediate source of income.
Another trend is to rent out the units furnished. Usually in New York City people expect to rent their apartment unfurnished from the landlord, but in certain cases, for example in areas of “first settlement” like Midtown or Financial District, it can make sense to rent furnished apartments. Why? Some renters are willing to pay a little premium and rent a furnished apartment before making final decisions about their permanent or semi permanent residence.
In this way, the landlord can often rent out the unit in days and get an above average rent.

Inflation is also to be noted as another item that affects the investors’ decision making process lately.
Many economists expect that, eventually, there will be an inflationary phenomenon within the US economy due to the quantitative easing policy implemented by the government.
The administration has been opening up the “liquidity faucet” for several months, making each dollar less valuable. This strategy was intended to keep the economy afloat, but if a dollar is made less valuable you will eventually need more dollars to buy the same good at a later point in time, real estate included. There’s no way to predict when and how this will take place, but it’s indisputable that this will happen at some point.
Given this scenario many investors are attracted by real estate which is by definition one of the best inflation-protected assets.

Things are looking prettier in the commercial real estate mortgage world too.
Andrew Singer, a mortgage broker, told the magazine The Real Deal how, in his opinion, there’s a volume of money available to be committed to real estate financing at such a high level not witnessed in several years.
The company managed by Mr. Singer has refinanced seven commercial buildings in Manhattan for a value of $750 million in the last nine months. In the same period in 2009 the same activity was stuck to zero.
Big insurance companies are also way more active in the commercial mortgage market. They have become one of the top 3 players along with the government and the banks.

Holy Strength
The idea isn’t new, but it looks like it still attracts all sorts of people whether they are good Christians or not.
I am talking about 58 Strong Place (in Cobble Hill, Brooklyn) a church converted into a condominium.
The project has been marketed since December by a local brokerage company, Brooklyn Bridge Realty, by the person of Saul Retig who has been involved in the development from the very beginning. Saul  pitched the site to the new developers in 2006 when the former one decided to back out.
The construction proceeded at a snail pace during the downturn period but it must be highlighted that it never halted.
Since the December launch, sales seem to proceed well and, as of February, there were reported 10 contracts signed on a total of 23 units.
Remarkable for a building whose asking prices (from $861 to $1,106 per square foot) are not that far from the Manhattan average.
But the question still stands: how does it feel to sin in the former house of God?

Aldyn
The new creature by the behemoth development company Extell is erected at Riverside Boulevard and 64th Street in Manhattan.
Aldyn is a hybrid building that houses 136 rental units and 150 condo units.
Prices start at $755,000 for a one-bedroom of just under 700 square feet to $17 million for a six-bedroom of over 5,000 square feet.
The luxury development is part of the redevelopment in the western area of Manhattan facing the Hudson River between 60th Street and 70th Street.
The northern part of this portion of land, comprised of several rental and high rise condos, was developed by The Donald in early 2000s. But the Trump organization lost the southern portion when its money partner, the Cheng Group, sold its share to Extell in 2005.
The Aldyn is part of a 3 buildings development, one of which doesn’t exist yet, that will all share incredible amenities: a 75 square foot swimming pool, a basketball court, a rock climbing wall, squash courts, a bowling alley, a yoga studio and a golf simulator.
If you need more, go elsewhere! :o)

This is it for today, dear friends.
I am always available to answer your questions and provide you with more information on your next real estate investment in New York City.

Warm Regards,
Riccardo Ravasini