The rest of the country is dealing with a downturn in the housing market, but the New York market still seems to be bucking the trend. We look at why we may have foreigners to thank, and find out where they come from, with Jonathan Miller, president and CEO of Miller Samuel, a real estate appraisal company.
Comments [11]
(and of course some would argue that section 8 and rent stabilized apartments already claim large chunks of otherwise-valuable real estate)
How would such a tax benefit the less wealthy, Nancy?
Has NYC ever considered a HOMESTEAD TAX, whereby people who do not make NYC their primary residence are assessed a SUBSTANTIAL tax to help keep New York affordable for New Yorkers? I know this is against the grain for NYC politics, but it is becoming more and more difficult for New Yorkers, except for the most affluent, to stay here to keep this city afloat.
Aren't American property owners and corporations just learning what it feels like what they've done all over the world?
We created the free market monster, now "we" can deal with it.
p.s. See the Korean film "The Host" -- its a goodie!
Ecahn:
?US dollar is sinking only b/c 1. the other currencies are increasing in value and 2. b/c oil is being traded against euro rather than US$.
For the US to lose econ power based on political risk it has to get much worse than you can even imagine!
(Just go visit any nonwestern country for a sober reminder...)
Your analyst is myopic. What has been true for the last 1-1/2 years is highly likely not to be true for the future. The U.S. dollar is sinking because the United States is losing its luster as a world power, and because the U.S. economy and federal budget are in deep trouble. Under those circumstances foreigners will cease to find NYC a good place to be.
Weak dollars don't attract foreign investment -- a strong army and rule of law does.
To prove the draw of FDI no need to view the NYC property market -- just look at the NYSE.
New York will still be New York, but in outlying areas in Jersey, the Bronx and far Brooklyn we can have "Servant Towns", where happy employees can sleep and watch tv during offhours, and then be transported in to serve their better-educated, more-moneyed, and (most importantly) prettier superiors.
Superiors with disposable income can "invest" online in which "servant" they think may increase in value over time, and when markets are open servants can be traded freely among the Superiors. This will create a new market to attract foreign investors and highlight the innovative financial products the American banking continues to develop.
I still wonder WHO can afford to live in NYC? Are there that many jobs in NYC paying enough to afford a $2500-$4500/mo rent??
Foreigners are likely buying NY R.E. for investment and presumably the owner does not move to NYC but rents the property, instead. If R.E. prices continue to rise, so must the rent/unit in order to provide a positive (or break-even) cash-flow investment.
My questions are: WHO can afford these rents? WHAT jobs support living in NYC at these rates? HOW is NYC's social landscape changing as a result--are we destined to become a gated community of "haves"?
I think the question we need to be asking is whether the band Foreigner was truly better than REO Speedwagon, or if the song "Africa" by Toto correctly lyricizes postcolonial psychopathology in a framework as discussed by Frant Fanon, or more of a Achille Mbembe latter-day critique?
Please, discuss among yourselves.
"We" may have "foreigners" to thank?
Y'all need ta' get out more!
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