New York real estate is stronger than ever.
- Property values increased 19 percent in 2006
- Bronx and Brooklyn highest increase -up 27.6 percent
- Total value for everything in New York City now worth $802.4 billion over $674.2 billion from last year
- Queens’ increase was the lowest at a respectable 12 percent increase
It all looks good on paper, of course. Property owners, whether owning the most expensive building in town, the Time Warner Center at $1.1 billion, or some of the smallest condos need to be aware and stay on their toes.
Yes, Mayor Bloomberg is promising relief, but for how long?
Another problem that is somewhat unique for New York investors is [tag-tec]rent control[/tag-tec], which we don’t have here in Nashville. Will those investors be able to swallow future property increases, post Bloomberg, without going up on the rents?
But I still remain very optimistic. Once again New York has proven itself a real estate leader as it bucks national trends which were supposed to be somewhat dark this year. Not only is the city ahead of all estimates of gloom and doom, but it seems to be thriving at a very good speed- five years after suffering 9-11.
This proves the investing formula we live by. Keep at it, year after year. American real estate is resilient and most people do well, just by being in the right places at the right times. Apparently, more often than not, that happens by accident. Just think what can be accomplished if you really put your mind and energy to it.
Incidentally, Mayor Bloomberg does not live in the most expensive house in town. That’s located on 48 East 92nd Street and rose in value by about $9 million this past year, making it worth $30.7 million. The Mayor’s town house in the Upper East Side is valued at $13.5 million- up $3 million.