investment condo where?

hard to believe none of you have weighed in on this problem of mine. no thoughts at all????

follow the gays

williamsburg rental market is very strong and there are lots of new condos many of which have tax abatements. There are risks there, like anywhere in NYC, but for whatever reason the market there is doing very well for sales and rentals. Will overdevelopment hurt prices -- people have said that for years and it hasn't happened, probably because more buildings makes the area more attractive to people looking for services.

Brooklyn is out of the picture and i did hoof it down to 400 fifth today to look at the area firsthand. not as bad as i originally thought but still too touristy/commercial for me. There has to be better options. again, their budget is generous and new or newer construction is preferred.

Obviously the village would be the best area, but as your friends are foreigners, and looking for the future investment potential, that means condo, of which there is limited supply in that area (if they require "new").

I hate to say it but your friends may be fooling themselves by thinking that they're buying for their daughter with future investment in mind. I say this because a friend of ours (overseas) did just that for a daughter getting her MBA at Columbia. Bought a VERY expensive 1 BR 1.5 Bath condo in a luxury building in the Lincoln Square area, (not new, but a very well regarded building),all cash, which she proceeded to renovate, and furnish (beautifully). (This was at THE peak of the market in 2008). She finished her studies, and this year went back home. The apartment was rented for the summer to a friend (for way under market) and for this past year to a cousin of hers (who stayed there RENT FREE). Our friend doesn't want to sell at a loss (though the market has actually come back in that building, but he would still lose some), and the daughter doesn't really want to rent it out to "strangers". I have often said to my husband that our friend's daughter could have rented the most expensive 1 BR apartment wherever she wanted, furnished it, and still spent WAY less than what he spent, and is continuing to spend (with maintenance and taxes, though the daughter pays for semi-weekly housekeeping).

Tell your friends to just rent a wonderful apartment for their daughter. If in the future she decides to stay in New York, that's the time to figure out where and what to buy.

And I agree with you re: the Setai - terrible, terrible idea.

Or maybe they'd be interested in a great apartment near Lincoln Center, with river views, gym and pool in the building, and with great service?

rosina>>>hard to believe none of you have weighed in on this problem of mine.

What you have is anything but a problem.

Thanks PH41 and i fear you are exactly right. In fact i will copy your answer and email it to them. But the right thing gets skewed when the money is abundant and your culture dictates that real estate is always the best investment.
Matsui, you are right. i have anything but a problem and should not have used that term.

Anything with the name "Trump" on it!

rosina - our friend is Asian, so I do understand the thinking. And the aspect of the very abundant money. When the daughter was originally investigating purchasing, she, having lived in London and Paris, was enamored of pre-war, but it had to be below 79th street, allow dogs, and washer/dryers in the apartment. That's like finding a needle in a haystack (or hen's teeth). Did find one, offered basically full price within 10 days of the listing, but sellers stuck with a previous offer. The daughter wound up being very very happy in the modern condo she eventually bought. But, as I said before, she could probably have rented a 2 BR in the same building for far less than the money her father spent.

It is a lovely apartment, however, and if your friends have any interest, let me know and I will give you my e-mail.

ph41 saod:
> rosina - our friend is Asian, so I do understand the thinking. And the aspect of the very abundant money.

I thought most of the foreign investors that failed miserably over the last several years were Europeans (the Irish, Italians, etc.)... I've heard of European banks going belly up, allegedly due to failed investments in the US real estate, but I have yet to hear of an Asian bank in such a situation. Am I missing something?

Clinton - this whole thing is NOT about "failed investors" but about EXTREMELY affluent parents buying for their very indulged children. Yes, in the past it MIGHT have worked out as an appreciating asset,more difficult to accomplish now, particularly with the parameters set by these buyers) but I really think that that is the way the kids talk their parents into it.

These are NOT "Irish carpenters".

Or actually, the way the parents LET their kids talk them into it.

>rosina - our friend is Asian, so I do understand the thinking.

Seriously, you said that?

Rosina - start with neighborhood. No NYU student will be caught dead hanging out by the empire state building at the Setai Fifth. I'd stick between Tribeca at the bottom and Flatiron / Chelsea at the top.

Not sure what budget is, but how about
http://streeteasy.com/nyc/sale/637702-condo-52-east-4th-street-east-village-new-york (she could have a guest room for dear mom and dad or get a roommate)
OR
http://streeteasy.com/nyc/sale/591845-condo-40-bond-street-noho-new-york
OR
http://streeteasy.com/nyc/sale/606794-condo-135-west-4th-street-greenwich-village-new-york

Funny Freebird - sellers of 2 of the 3 listings you posted are trying to make $1M more than they paid a few years ago. Seriously?

And mom and dad are probably worried about their daughter's security while living in NY, so IMHO would go for a doorman building. And I also think, while the budget is generous, these people aren't idiots putting $3,or 4$ million dollars into an apartment for their daughter to live in while she goes to school.
Though Rosina would obviously know more about that. I'm just guessing.

Rosina, I would suggest 340 E. 23rd Street. The location is not too far from NYU (actually NYU has a dorm not too far away on 23rd and 3rd Avenue). This is a somewhat new building (in the 4th year). While the apartments aren't huge, the amenities and finishes are very nice and therefore popular among young individuals/professionals . Two things to keep in mind regarding this building which could make it a smart investment. The people who bought during construction, bought at peak and some are willing to take losses. In addition, during the summer months the rent these apartments fetch are quite high. I have done quite a bit of work in this building on the rental side and each year had great success renting to foreign students who are here for one year or two years. A lot of times they are even willing to pay the entire year upfront, which for an owner could be quite attractive.

Also, my friend's daughter, whether because of security issues, or modesty, or just general social awareness, really didn't want her classmates to know that she owned the apartment (it was obviously much nicer than those of her friends and classmates) so she told people that friends of her parents owned it, which served as an "explanation" as to how she could afford to live there.

ph41, you have guessed the scenario and they are from Hong Kong where we lived for several years. They were willing to pay close to $2 mill at 400 Fifth for 1100 plus square feet with two bedrooms and good security but were hesitant enough to ask my advice. Freebird, I told them the cost per square foot was high at 400 Fifth and the apartments you noted have even higher per foot costs but thanks for the recommendations. I did email them the anecdote that ph41 wrote and maybe they will rethink all of this.

uesuptowner, thanks. we actually looked in that building when we were buying as it is close to our son and his family in gramercy. it was fairly new then and sales/resales were already tough because of the economy. i was wondering how it would fare and thanks for the details.

Rosina:
if they want a 2 BR (so they have a comfortable guest room when they visit) - rental (don't seem to have any 2 BR's for sale right now). Easy subway ride to NYU, and very nice area for visiting parents (park,theater,shopping.
http://streeteasy.com/nyc/rental/813211-condo-160-west-66th-street-lincoln-square-new-york

rosina - I thought so - our friend is also from Hong Kong.

thanks ph41. They are not in a hurry as she is in a dorm this freshman year but they were looking for two bedrooms/twobaths. if they decide to do the rental route, i'll suggest it.

rosina- if you have time, you might want to check out the building to see if you think it would work for them. It is a condo, so a 2BR/2Bth would probably come up for sale at some point. I really like the river facing view, though I haven't been in a unit facing the park (not sure really how much park view one gets).

Thanks ph41, I will do that as i love walking around that area anyway.

rosina -- watch this building. You can throw a rock and hit NYU:

http://streeteasy.com/nyc/sale/641512-condo-22-west-15th-street-flatiron-new-york

All these foreigners rushing to buy NYC real estate makes me think of the Japanese and their ill-timed purchase of Rockefeller Center, which almost went bankrupt.

west34, I will watch it as i actually really like the flatiron area for a variety of reasons. we leased near there the year we did our apartment search. so much better than 400 fifth. thanks....

and rosina- just to clarify, my friend does NOT own a 2 BR/2 bth at 160 West 66th.

ph, i knew that as you were very clear that it was a one bedroom in the original email. thanks again for all the help. haven't heard back from them after i sent your anecdote...

I would suggest the 42nd St strip with it's schlew of new development... The razzle, dazzle of Times Square and being in the center of it all is always a draw for foreign buyers...

"I would suggest the 42nd St strip with it's schlew of new development... The razzle, dazzle of Times Square and being in the center of it all is always a draw for foreign buyers... "

this is why no one likes new yorkers. they're mean!

lucillebluth
1 minute ago
stop ignoring this person
report abuse "I would suggest the 42nd St strip with it's schlew of new development... The razzle, dazzle of Times Square and being in the center of it all is always a draw for foreign buyers... "

this is why no one likes new yorkers. they're mean!

Lucille, this person lives at Mima, so is most likely serious.

wtf is a mima?

It's that new, very expensive rental building at 450 West 42nd.

And I REALLY doubt that an affluent buyer from Hong Kong wants to be anywhere NEAR Times Square.

this is why you shouldn't be here Lucille. NYC real estate website that is.

nor you..

lucillebluth
18 minutes ago
stop ignoring this person
report abuse wtf is a mima?

This is about real estate is it not?

yes, yes it is. about real estate.

Oh my aching head again, lucilleme and jimme are fighting