All Forum Posts by: Max Galka

The Most Expensive Apartments in NYC

This map lays out the full picture.  I would like to think it is not a bubble, but if all of these people are buying with the hope of future appreciation, it seems like they could be in for a rude awakening.

Neighborhoods turn around all the time.  But I think it is usually the result of big economic forces, rather than something that was intentionally done.

That is not always the case, but I do think in your case that it probably has mostly to do with the nature of the good area nearby that you mention.  If real estate in that area is going up, and the economy around there is improving, then it is likely to spread.

It sounds funny, but the best leading indicator that I have seen for s neighborhood about to improve is the presence of artists and other young, trendy people.  For some reason they tend to find the up and coming areas first.

Another security deposit question occurs to me.  Normally landlords are allowed to deduct 1% interest from the account for an administrative fee.  What happens when the interest rate is below 1% (as I believe it is today)?  Can the landlord return less money that was originally given?

Some recent stats

128 Homes Valued at $25M or more (one unit sold at $100M last month)

It seems like out of nowhere, people in NYC are all of a sudden paying completely nonsensical prices for housing.  And this is only the beginning.  There are 6 new towers under construction that will all be more expensive a luxurious that anything in NYC currently.

Why is the happening now?  I know the wealth disparities have grown in recent years, but this all seems to have happened in the last 6 months.

@Ariel_Ozick

Don't mean to claim that they are all no brainer investments.  My comments were in response to @Les Jean-Pierre comment, that most areas of NYC have already experienced the price appreciation, and would have been more attractive investments a few years back.

What I am pointing out is that NYC has many areas that look very much like what Williamsburg looked like a few years ago.  They may or may not be good investments, but it is at least plausible that they could be.

I think that is true for the neighborhoods that most people are familiar with.  But there are a ton of neighborhoods just beyond that most New Yorkers are not even aware of.

Here is a recent post that highlights this point.

https://medium.com/re-form/nycs-housing-cost-myth-9dce6052c139

In case there is any misunderstanding, a flip tax is not actually a tax.  It is just a rule that coops sometimes impose.  The specifics vary from building to building (seller pays / buyers pays, flat fee / percentage of sales price fee, etc).  Basically whatever each individual coop wants.

I am not aware of and condos that have imposed a flip tax.  Condos do not have as much flexibility to impose rules as coops do, but I think it is theoretically possible in some cases.

Hello -

Just joined Bigger Pockets today and wanted to introduce myself.  I am a longtime new yorker and real estate enthusiast.  And I recently launched a real estate startup called Revaluate.

I have only recently started seriously considering investing in real estate, and am looking forward to joining the discussions and learning more about it.

Max