When faced with the question of whether or not there still exists affordable
property in Manhattan, a suburb of New York City, the immediate instinctive
answer would be an unequivocal NO. The area is so densely populated and so
highly sought after that it would be almost impossible to find any inexpensive
properties.
Manhattan is an odd property market given the current economic condition in the
US. Property all over the country is decreasing in value as more and more
properties are defaulted. But Manhattan's sales markets are increasing because
of the numbers of foreigners trying to purchase property in Manhattan. So while
it may not be cheap to buy for locals, it is apparently inexpensive enough for
the Europeans.
When one considers the multitude of foreclosures, decreased property prices, and
the weakening dollar against the pound and other currencies, Manhattan is a good
prospect when investing from outside. Americans may view the real estate as over
priced and they may even view property investment as a poor choice in today's
market but for those living outside the US looking for prime real estate, the
Manhattan market looks very promising.
Investors from Russia, France, Czeck Republic, Japan, Saudi Arabia, Italy,
Ireland and England are buying properties in pre-construction stages years
before the property is even completed. And these are not conglomerates who are
investing but rather everyday people who want to have a piece of what is
considered prime world real estate - New York City.
On the other side of the coin, for investors or home buyers in the US who have
the time, determination and resourcefulness to scour properties for sale, they
may find cheaper prices relative to what was cheap a year ago. So although, the
property may still be expensive, there are bargains that can be found by
searching.
Statistics also show that most people who live in Manhattan have a higher
average salary than people do in other cities around the country. This point
makes the market seem affordable in some instances, as higher wage earners would
be able to afford the higher housing costs. When purchasing affordable property
in Manhattan, the key to the decision is recognizing that affordable does not
mean cheap or low dollars.
The Manhattan market is different than most other US cities. In fact, it is much
different than other affluent areas so the definition of affordable is relative.
Affordable relates to the prices of the properties sold to those who possess the
financial wherewithal to purchase in this market. It does not appeal to nor
target people looking for large homes at half a million dollars and below. And
in reality, half a million does not buy much here.
Take for example, the Prima Chelsea, a new project expected to be completed in
2009 by Prima in the Chelsea neighborhood of Manhattan. Five hundred and fifty
square foot units with one bedroom are selling for seven hundred thousand
dollars. If the buyer can afford to live in Manhattan, then this is affordable
real estate keeping in mind that it is inexpensive with true luxury featuring
onsite concierge, highly desirable neighborhood, fabulous gardens, storage areas
and media room with wet bar.
Indeed, while there may not be affordable properties for locals who must live in
Manhattan or even those looking for a good investment, there is on the other
hand plenty of affordable property for outside investors. Another incentive for
investors is the fact that Manhattan is a regeneration area. This means that
there are serious tax breaks for ten years in return for building new structures.
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