Mortgage Lenders Loosend the Reigns....

....and as a result more homes are selling.

Yet another indicator that the worst is over for the real estate market is that mortgage money is becoming easier to obtain. Lets not get too excited, getting financing is still the most difficult aspect of a real estate transaction but.....its gotten just a tiny bit easier.

Jumbo Loans, those over $500,000, are now being offered by lenders again, rates continue to drop and banks are lending to borrowers that have less than perfect credit scores.

The bottom line is that the banks make money by lending and the real estate brokerages make money by selling homes. The two are forever tied together and will prosper or struggle together.

Free Advice from a Multi-Billionaire

Billionaire and hedge fund operator John Paulson, famous for making a fortune by betting on shaky real estate investments, gave a speech at New York's University Club last week.

Amongst the investment advice he gave was "This is the best time in 50 years to buy homes," Paulson advised his listeners crowded into three rooms, "to issue 30 year mortgages to buy a home as your debt and interest payments get locked in at record lows, while the price of your home will rise."

"If you don't own a home buy one," Paulson recommended;" If you own one home, buy another one, and if you own two homes buy a third and lend your relatives the money to buy a home."

Well, strong words of advice from someone that has nothing to gain or lose by giving us his honest opinion....gotta go, time to buy a house!!!

Rental Demand Rising for the Ultra Rich

In NYC about 75% of us rent and lately, that includes the wealthy who are renting apartments from $10,000 to $100,000 per month.

Partly because sales in the New York City luxury market , the niche that has been slowest to recover from the housing crash is unpredictable. As a result, sellers and buyers reluctant to jump into such a bumpy market are turning to the rental option, with demand so high for large and extravagant condominiums that inventory is in short supply.

At the highest end of the rental market, defined as the apartments renting for $10,000 a month or more, the 200 new leases signed in the third quarter amounted to more than double the number at the same time in 2009.

So, what do you get for $100,000 a month? How does the other 0.0013 percent live?
How about a four bedroom/six and a half bathroom 6,200 sq ft duplex on Park Avenue with 1600 sq feet of outdoor space? You say you would prefer not to rent? No problem, this apartment is also for sale with a modest asking price of $51M.

Rents are coming back because people cant find the product they want for the price they are prepared to pay.

What Would You Change About Your Apartment?

New Yorkers like to complain; we are experts at it. And when it comes to complaining about our living situations, the biggest challenge is picking just one thing to complain about....besides price.

Most say its the location...too far from the subway, too close to the school yard. I once had a friend that lived in a fantastic loft apartment directly above a restaurant called Currey In a Hurry.

Here's what five New Yorkers would like to change in their current situations....

• My pot-smoking neighbor. Not that I have anything against it, just that I don't want my apartment to smell like a High Times convention.

• Window Screens (lack of). Fresh air with out mosquito's....seems reasonable enough.

• My upstairs neighbors. Has anyone heard of this new invention called carpeting? Why must people keep their shoes on at home at 2:00 in the morning. Maybe I should buy them some bedroom slippers?

• My windows. I have a great view of the Empire State Building with windows the size of postage stamps.

• My small, weird bathroom. When you rent an apartment sight unseen while on the road moving to NY from Ohio you really cant complain but....I need to close the door to open the closet and close the closet to get to the sink...UGH

Israeli Investors Bullish on Manhattan

According to the Association of Foreign Investors in Real Estate, the US is still the most attractive country to invest in for real estate. The top three cities as rated by AFIRE, are Washington DC, San Francisco and Manhattan.

Israeli investors who at one time invested heavily in NYC real estate are once again buying up property after a brief layoff. Over the years several large real estate investment firms that are Israeli owned such as The Ofer family, Gaia Real Estate and the Fishman Group have amassed large portfolios of residential and office space.

Now, these firms plus several newer players are on a shopping spree. Looking for good value, property whose price has fallen victim to the downturn and that can be bought for a discounted price based on the numbers from the boom years.

In good times and bad, real estate remains the one constant that all investment portfolios should include. And, no matter where you are from, there is no better real estate investment than Manhattan properties.

Tribeca Continues to Change and Grow

Many years ago before the Tribeca Film Festival, before Robert DeNiro began opening upscale restaurants, before movie stars and models decided that Tribeca was where they wanted to live Tribeca was an industrial hub. Many of today's exclusive lofts were factories that housed manufacturers of many different products.

The zoning laws continue to change in favor of updating the antiquated laws of years ago. The zoning board just approved 25 blocks of prime Tribeca real estate to be zoned residential. This will add a large number of new apartments and lofts to the market and add a lot of new neighbors to join in with Mr. DeNiro and his pals at the local bars and restaurants.

If You Are Looking For Real Value in The City....

....how about taking a look on the Upper East Side?


For many years the Upper East Side was known as the place to live if you were newly rich, had old money or aspired to be living amongst those that had it all. The finest restaurants, the priciest shops and best markets all were found on the Upper East Side.

Well, many of the city's affluent still reside on the Upper East Side but due to a higher that usual inventory of empty apartments there are now many properties for sale and for rent which are priced to attract first time buyers or those that need a second home.

Studios can be found for around $300,000 and one bedroom apartments start around $400,000. In terms of Manhattan Real Estate these are great values and as the word gets out and the inventory dries up prices will no doubt increase.

But, for the moment, if you are looking for a good deal on a studio or one bedroom apartment look no further than the wealthiest neighborhood in the city....ironic isn't it?

A Good Deal Always Outweighs Doubt

As I have reported previously in this blog, that the facet of the real estate market that was most severely impacted by the financial downturn in 2008/2009 were the new development projects. But now, for no logical reason, the upscale high rises that have seemingly sprung up over night in every neighborhood of the city are selling again.

It may very well be a combination of things...banks are more willing to loan on these projects, prices are lower but not in a free fall so stability has been added and at the end of the day its all about getting a good deal.

Perception is one of the greatest factors in driving real estate prices either up or down. Today, the perception is that things are better, that prices have bottomed out and that now is the time to buy. So, people are buying and inventory is dwindling and developers are almost ready to smile again....lets hope it lasts.

Wall Street Bonuses To Top $140 Billion

Its Deja Vu all over again on Wall Street. After what is shaping up to be a profitable year on Wall Street the men and women that make the wheels of our economy turn are rewarding themselves with a bit of spare change....to the tune of $144,000,000.....CHA CHING!!!!

While on one hand this amount of money seems ludicrous, it also means that the Real Estate market here in NYC is about to get a big influx of buyers that will gobble up much of the condo inventory that's been sitting idle since the crash in 2008.

I find it ironic that it was the banking industry that caused the real estate market to crash, it is currently the banking industry that is making obtaining a loan to purchase a home so difficult and it will be the banking industry that will move us from "Recovery Mode" to a strong seller's market by buying up all the available property.

Wall Street may be the perfect paradox.

Foreigners Continue To Buy High End Condos

Just before Christmas last year I remember reading an interview with several families from Ireland that had flown to NYC to do all their Holiday Shopping here in The States where is was 40% cheaper than to do so at home in Dublin. Imagine....it was cheaper to fly to NY, stay in a hotel, eat at NYC restaurants and do their shopping here than it was to stay home and buy their gifts there.....amazing and all due to the valuation of the dollar as compared to other currencies.

Well the same philosophy has been helping the NYC real estate market work its way through recovery. Foreigners, taking advantage of a weak dollar are buying high end condos here in the city. Some as pure investments and some to actually use from time to time as their vacation home. Some sharp developers have even opened sales offices in Paris, London and Madrid (amongst other cities) where they market their NYC condos to the ultimate consumers right in their own back yard.

So the next time you walk down the street and almost trip over people gazing up at the sky scrapers don't be so quick to assume they are tourists, they could be simply pointing out their own apartments.

Can Interest Rates Go Any Lower?

It seems that every six or eight weeks an article comes out in one of the various business papers stating that "interest rates have hit historic lows". Then the article goes on to talk about how now is a great time to buy because the rates are so low.

Fast forward a month or two and here we go again...new historic lows.

Today a report came out quoting 15 and 30 year rates at under 4.5%. Truth be told...this really is historic. But, is this why we buy a new home?

I am the first to admit that low interest rates allow the buyer to get more bang for his buck. But we don't decide to buy BECAUSE of the rates. We decide to buy because we are tired of paying rent, because our family is growing or contracting, because we have just retired or just been transferred. In all of these cases the interest rate is important but its not the motivating factor.

Lets stop talking about interest rates and spend more time talking about life style. About owning a place of your own, participating in the American Dream. Remember to buy with in your means and not over extend yourself with a property that you will struggle to pay off. And, don't forget that when a rate says its adjustable that means that it will be increasing over time and your monthly bill will get higher.

So, go and buy a new home, help the economy, create your own American Dream not because of the interest rates being low but because its the right time for you and your family.

Want to sell your home faster and for more money?

One way of doing so is to invest in a better camera. Its common knowledge that 90% of all home buyers begin their search on line. What attracts buyers to your ad? With out any question its the photos.

A home whose pictures were taken with a phone camera may be a substantially nicer property than one whose pictures were taken with the wide angle lens of a real camera but.....when a potential buyer scrolls through listings which property will spark his interest?

There is a list of items that brokers constantly recommend to sellers to help move the property. A coat of paint, remove some of the clutter, open the windows to air out the musty smell. But whether you are a broker or a seller investing a few hundred dollars in a better camera with a wide angle lens will help sell your property faster and for more money.

Making The Roomate Hunt Easier and Safer

I am not breaking any earth shattering news when I say that the cost of renting an apartment here in NYC is very expensive. To offset costs many people, in particular young people, turn to roomates. When I graduated college I moved into a one bedroom apartment with my best friend and we stayed together until I moved out some years later to get married.

But, if you dont have any friends to move in with or if you are new to the city finding a complete stranger to move in with can be a scary and stressful event.

Now comes word of a new option....Roomates Wanted NYC. Its a new service that lets potential roomates meet in a group setting usually a bar or restaurant. You can mingle, talk to other like minded people and walk away feeling comfortable that you may have met a few "normal" people to chose from to become roomates.

Its a very civilized method of selecting a roomate and one whose time has certainly come.

How Good Is Your Real Estate Broker?

Forbes Magazine recently came out with "The Top Signs Of A Bad Real Estate Agent". If you are currently working with an agent that shows any of these signs then its time for you to find a new agent. And, if you are an agent and any of the items on this list look a bit too familiar I suggest you consider a new career.

1) Lack of Communication. If you haven't heard from your broker in a few weeks its time to find a new one.

2) Lack of Leadership. If your real estate agent agrees with you on every point, this is a sign of someone who's eager to please not someone who's committed to doing the best possible job at representing your interests.

3) Unused Resources. If you are finding more listings by doing some basic searches on line than your broker is coming up with then its time to find a new broker.

4) Too Much Pressure. You want an agent with an educated opinion, someone that can steer you through the process and make you feel confident. However, if you feel that the broker is pressuring you to make a decision and is more interested in his commission than in your best interests its time to find a new broker.

5) Lack of Follow Up. An agents job does not end when the deal closes and the buyers move in. A smart agent follows up and stays in touch. Referrals are the key to our business and if an agent doesn't understand this they wont be in the business for very long.

So, how does your real estate broker measure up? More importantly, for all you agents...how are you doing?