Sunday, February 17, 2019

Oligarchs are losing millions on their luxury tower condos


NY Post

 Don’t believe the brochures. A Billionaire’s Row apartment can be a terrible investment.
 
“One of the things that I struggle to wrap my head around is why people continue to park money in high-end New York real estate when it’s not a very lucrative asset class,” said Grant Long, senior economist at StreetEasy, a New York listing platform.
“You just have to assume someone like 
Ken Griffin [who recently dropped a record-breaking $250 million on an apartment at 220 Central Park South] isn’t very interested in seeing his money back. An apartment like that isn’t liquid.”
 
Roughly 16,000 apartments were bought and resold in New York from 2014 through 2018. Of those, 1,295 homes — 7.7 percent — sold at an outright loss.

 But a whopping 39 percent of the 66 luxury condos that were bought and resold in Midtown during this time lost money, according to a StreetEasy analysis of city Department of Finance records. In fact, across all neighborhoods, the city’s priciest properties saw losses.
  And the addresses read like a who’s who of prestige properties, including 15 Central Park West, 432 Park (North America’s tallest residential tower), the Time Warner Center and One57 (which boasted New York City’s first $100 million home sale).
 
“In New York, real estate behaves like a luxury good,” Long said. “It’s like fancy cars and expensive handbags. It’s purchased to make a statement. But it’s also highly cyclical and subject to whims.”

Obscene.

This is going to come off nauseating considering the source and apologies to every reader of this blog and the rest of humanity, but talk about money in the wrong hands. 

12 comments:

Anonymous said...

What is more obscene is that they all get 30 year tax abatements

JQ LLC said...

Anon:

one fucking hundred.

Rob In Manhattan said...

I await the Trump money laundering charges.

Watching that scumbag deal with reality will be rich..and well deserved.

Rob in Manhattan.

Anonymous said...

@Rob In Manhattan said...
Yes and you are still waiting for the "Russian Collusion" !
#orangemanbad

Anonymous said...

That's what I dont understand about these people. People pay so much money for houses and apartments but who has the money to buy them when you want to sell them? Most of America is broke and can't afford it. The only thing left is foreign investors and they are more interested in buying actual property than an apartment. I'm glad all these rich assholes are finally seeing just what happens when they buy things for so much money....they will all have a hard time selling it later on.

Anonymous said...

THEY SHOULD TRY THE AIRB&B SERVICE FOR MILLIONAIRES.

Stranded NYer said...

Finally, some good news for a change!

JQ LLC said...

There definitely was no Russian collusion

But there sure is money laundering. #orangemanisbadreallybad

@Stranded

I don't think we should engage in schendefreude over this story. This frivolity and tourism are the backbone of this city's economy.

Jon said...

Really! This Street Easy person doesn't understand?


Because a lot of the money started as illegal money and this is a way to launder the money.


" I don't understand why these people park money in high-end New York real estate when it’s not a very lucrative asset class"

Anonymous said...

I don't think it is our concern what others do with their money, seriously..

JQ LLC said...

Street Easy person = Casablanca's Claude Rains

Tommy Efreeti said...

Boo hoo, how sad hahahha