Anytime something related to the economy or a dramatic change happens people start panicking thinking it´s almost the end of the world.
They attribute the lower rents to this, they don´t touch their money “just in case” and overwinter like bears until the crises passes by. But is it always like this?
Fortunately not all events of this kind bring concern to investors, specially if the residence they are willing to rent is located in New York.
Ok, but first let´s start explaining what is this all about and why am I taking about it.
You´d probably heard about Brexit (Britain and exit), this is the withdrawal of the United Kingdom from the European Union and it has been the goal of various individuals and political parties who had been pursuing this determination for quite a long time.
John Gomes who works for a Douglas Elliman Broker, says the effects of Brexit had hit the US market and that the anticipation of lower prices had pushed away the interest of buyers willing to afford a luxury residence.
He affirms he was about to sell a 20 million dollar property when Brexit happened. The next day he received a call from its potential buyer saying he was going to reconsider the business and would wait some more time to see how things went on.
Properties evaluated below 3 million are raging, says Gomes and adds: “if it´s below 2 million forget about it”.
So, I understand someone can have a perception of the Real Estate market but sometimes that perception is not really what´s happening. May be one client declined in buying a 20 million dollar residence because of Brexit, but IMO that doesn´t mean everyone´s going to cancel this kind of operations for the same reason.
In fact I do believe Brexit favored the American market as I still see Luxurious Apartments being rented and required by New Yorkers and this city is by far one of the best places for investing in the real estate industry.
Uncertain created by Brexit is actually helping because many rich people and important companies are moving to New York and although a new global recession is being predicted by economists, New York is jumping on one leg!
Why? Imagine London would feel its consequences as foreign billionaires would probably stop stashing their cash in luxury residences and New York will attract more wealthy buyers who will seek a stable and safe market to invest in!
In fact big projects like Mercedes House are doing great this year in terms of sales and rents even after the Brexit effect and according to Alexa we can appreciate more traffic in the availability section coming from United Kingdom who are searching for luxury apartments in New York City.
Residences at Mercedes house are awesome! In fact, that´s what I call luxurious apartments in NYC!! J.
Its apartments count with floor- to- ceiling windows, wonderful city views and are furnished with the best materials. A real luxury only a few can enjoy.
Ok, so I´m not a fortuneteller and can´t predict the future, but still my intuition (which never fails) tells me New York can get benefits attracting people and companies who no longer see London as a reliable commercial center, so…WELCOME BREXIT!
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Have a wonderful day!