New York’s Ultra-Luxury Bubble Hits A Snag

The real estate safe haven of Manhattan‘s ultraluxury real estate hit a snag, much like a balloon popping at the spire of its very own skyscraper’s penthouse. The world’s super rich invested in big cities world wide to protect their earnings from the troubles of the Great Recession that gripped the rest of the world starting in late 2008. Though, the rush into luxury properties started well into 2014 and has continued nearly unfettered.

Several major monetary policy changes sent foreign and cash investors to the exterior, free-falling down the side of these buildings. For one, cash investors, many of whom had earned their money in illegal activities such as human trafficking, the sex slave trade, gun running or other nefarious and undocumented manners used to have a great opportunity to launder their money in legal manners — real estate. In fact, until a couple of years ago, while the rest of the United States has clamped down on the potential financial flow of terrorist and illegal money, real estate was largely untouched. In other words, realtors did not have to (and often did not) ask questions about the source of the cash used to buy 100-million-dollar properties, particularly by foreigners. sales-prices-in-new-york

These days, even in the United States and even in New York City, where a big portion of 9-11 occurred, foreign cash buyers, in particular, are either not allowed or questioned to the point where it would illuminate just how they made their money. Inconveniently to U.S. luxury markets, China has put bumpers on money leaving its nation as well. That was a huge chunk of the money that was being invested in the ultra-luxury markets. Not to mention that many of the once flush with cash Chinese investors lost it all with their own stock market troubles by the close of 2015 and into the open of 2016’s trading.

How Does This Shrinking Buyer Pool Change Real Estate?
Either way, the super rich investors chose high-tag real estate because it was less volatile and it allowed them to use corporations to shroud their identities. Again, that is no longer allowed. At this point, the luxury penthouses have had to split into two places, while slashing the prices to enter the market by more than 75% of their value in some cases. For instance, where there were places selling for $100 million, the value dropped to a price of $75 million, with the properties being subdivided and slashed further in cost.

Mid-2014 marked a change worldwide in the sought-after purchase of super luxury penthouse apartments. The prices have pulled back in Paris, Singapore, Dubai, London, and Moscow. For anyone in real estate it just marks the end of a party after an extended bullish period. Sometimes even the super rich need to know when the party is over because it can easily turn into a dive bar if they linger too long. Pretty much what has happened is that the ceiling is coming down on the price of real estate. Yet, it is not reaching the dive bar state of fire sales yet either. It turns out that even in Manhattan proper the price of real estate that is around $3 million is considered the prime arena because that’s where people who are living there are invested at and willing to spend to live there. Best to read the signs and keep up with the times to understand how the future of the real estate market is looking. This is just one economic indicator that signals how to invest in stocks and the markets as well as in real estate.

Coastal Real Estate

Investing in real estate is always a good idea. Real estate investments have proven to increase your investment portfolio on a regular yearly basis. The question that many investors have is which city is the best place to invest your money. Dollar for dollar one of your best real estate investments would be in cities that have a coast line. The reason for this is quite obvious. People are attracted to the ocean and therefore real estate property that is close to the ocean is more preferable to buyers.

A coastal real estate area will provide the buyer with a variety of recreational options. For example, people who live in cities on the coast have access to sailing, scuba diving, power boating, kite surfing, surfing, snorkeling, sun bathing on the beach, fishing, and an endless variety of other water sports and activities. Everyone enjoys a pleasant afternoon with her family on the beach and therefore choosing a property in a coastal town is a wise investment.coastal town

There are many coastal towns throughout the world. When choosing an area to invest in it is always good to look for an area that has a stable government. There are many opportunities to purchase coastal properties in countries that do not have a stable government but the risk is high to purchase these type of properties. There are many examples of governments taking over properties from foreigners and therefore avoid unstable government countries for property investment at all costs.

When investing in a coastal town it is also advantageous to choose a property that is as close to the water as you can get. In fact, if you can purchase a property that is on the waterfront you should do so. Waterfront properties are scarce and they will hold their value and increase in value quicker than an inland property. Of course, purchasing a property in a coastal town will depend upon a person’s budget.

When purchasing a property in a coastal town always remember to keep your emotions in check. Many investors make the mistake of allowing their emotions to become involved when making a real estate transaction. They assume that the property that they are interested in will sell quickly and therefore they often pay too high a price. Just remember that there are always other real estate investment deals just around the corner and therefore you should look for bargains.

It is preferable to purchase a property in a coastal town that includes a dwelling of some type. It really does not matter what type of dwelling it is. It can be a beach cottage, a townhouse, an apartment, or a residential dwelling. True, town houses and apartments do not increase in value as quickly as detached residential dwellings but if your budget cannot afford the latter than the former is still a good option. There are many other investment tips that a person can utilize when purchasing coastal properties. The key to any good real estate investment is to thoroughly investigate the property and area before investing.

Should You Invest In Gold Or Real Estate In 2016

Being able to make money via investing is always a tricky subject. It’s certainly possible to make loads of money if you invest in the right thing. However, it’s not always easy to tell what the right thing is. You can look at market trends and try to guess by that, which is what most people do. It’s probably the most straight forward way to figure things out.

However, there’s also another aspect of investing that’s important to consider, especially in the year 2016. That aspect is the long term impact on the economy and the population. It’s all well and good to invest based on nothing but how much money a thing can make for you, but when your investments can cause a long term problem, then it might be appropriate to invest a little bit differently. This is one of the major problems with investing in real estate in 2016. The housing market had a huge crash recently, leaving thousands of people homeless and thousands more with properties that they can’t sell because the banks refuse to sell for below what they’ve determined the property is worth. Never mind that the owner has a potential buyer.

This is a huge problem, for reasons that should be obvious. When people are homeless, they are left in a horrible position. It doesn’t help that the United States is particularly terrible at helping its homeless population, either. Real-estate-price-vs-Gold-price-movement

So what about business real estate? That’s less of a problem, but business real estate is real estate that could be used to build low income homes, or do other things that could help the population. So even with that kind of real estate, there could be a number of issues that are caused by the investment.

Meanwhile, investing in gold in 2016 may not be as immediately profitable, but it could be much more economically stable. The price of gold doesn’t raise as drastically as real estate, because it’s just not as necessary as real estate. However, there’s a certain idea in people’s minds that gold is incredibly stable. This is somewhat ridiculous, since gold only has value because everyone has decided it has value, but the fact remains that everyone has decided it has value.

This means that whatever price you pay for gold, you’ll be able to get at least somewhat around that price when you sell it. Even when the price of gold goes down, it won’t go down so much that you’ll be taking a giant loss. What’s more, it will often go up in worth.

So when you’re looking to invest in the year 2016, it’s worthwhile to consider not just the financial incentives, but also the long term economic incentives. It’s all well and good to make as much money as you can as quickly as possible, but that kind of decision can have a huge impact on the economic environment. It’s much better to be a responsible investor.