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 hibernate like bears until the crisis passes by. But has it always been like this?
Fortunately, not all events of this nature bring concern to investors. Especially, if the residents are willing to rent in New York.
Ok, but first let me explain what this is all about and why am I talking about it.
How “Brexit” affects the luxury apartment industry.
You´ve 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 have been pursuing this determination for quite a long time.
John Gomes who works for Douglas Elliman Broker, says the effects of Brexit has hit the US market and that the anticipation of lower prices have 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 deal and would wait some more time to see how things played out.
Properties evaluated below 3 million are raging, says Gomes and adds: “if it´s below 2 million forget about it”.
The positive side of “Brexit” on luxurious apartment rentals in NYC.
So, I understand someone can have a perception of the Real Estate market but sometimes that perception is not reality. Maybe one client declined to purchase a 20 million dollar residence because of Brexit, but IMO that doesn´t mean everyone´s going to backout of this kind of deal for the same reason.
In fact, I do believe Brexit favored the American market. As I still see luxurious apartments being rented. New York City is one of the best places for investing in the real estate industry.
Uncertainty creates Brexit, which is actually helping because many rich people and important companies are moving to New York. Although a new global recession is being predicted by economists, New York is jumping on one leg!
Why? Imagine the impact in London, as foreign billionaires would probably stop stashing their cash in luxury residences. 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 rentals, even after the Brexit effect. According to Alexa, we can expect more traffic in the way of people coming from the United Kingdom 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!!
The apartments come with floor- to- ceiling windows, wonderful city views and are furnished with the quality furniture & appliances. A real luxury only a few can enjoy.
Ok, so I´m not a fortune teller and can´t predict the future, but still my intuition (which never fails), tells me New York can benefit from attracting people and companies who no longer see London as a reliable commercial center, so…WELCOME BREXIT!
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“Remember when London was the most popular city for foreign billionaires looking to stash their cash in some luxury penthouses? Well, those days could soon be over.It should be remembered that the UK is a country with 60 million wealthy consumers.” – London-based brokerage Knight Frank