Saturday, September 24, 2016

Take on the $1.25 million dollar apartment

I always keep my eyes on the Real Estate section of the Sunday Times, there is this one part where they show about five houses in different areas in the metropolitan area

Today I saw this one, and thought to myself.  If this isn't an indication of a new bubble then I have no idea.  The one bedroom apartment featured has an asking price of $1.25 million, they want 50% down for a one bedroom apt
The location isn't interesting (54th and 5th) PLUS they have maintenance fees of $2500 per month.   You may say that it's in the center of the greatest city in the world but it is also in an area which has no residential feel.  There is an argument that the convenience of being a few blocks from some rich guys office makes it appealing, but why would a rich guy choose to live in a lifeless neighborhood.   This doesn't mean it won't sell, as this apartment will get scooped up by a rich Chinese guy who won't ever live there...and that is where many of the top end NYC apartments are going because no New Yorker with half a brain would think about living in midtown, at any price. 

The monthly carrying costs on this must be outrageous between the mortgage and maintenance although the silver lining would be that with a requirement of 50% down it's not too bad.  

Sent from my iPhone

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