Why Is Real Estate in New York So Expensive?
Legendary Big Apple offers you a lot of excitement and variety, and it’s one of those cities that always seem to be in fashion. Now, places like this come with a price – and a rather high one when it comes to real estate.
Median home sale prices in NYC in 2013 exceeded $855,000. If we compare that to the U.S. median home sale price in the same year, we learn that there’s about $200,000 difference – which you pay for homes in NYC.
But, do we know why it’s so expensive to own a home in New York City?
One fact still remains – to some wealthy clients owning a piece of the Big Apple is so much more important than the cost associated with its real estate.
Now, a new trend also seems to be emerging – global rich are coming to New York.
Wealthy foreign buyers, especially the Chinese and the Russians, are acquiring real estate in New York City at a fast pace.
What is the reason for the foreign wealth influx into the NYC real estate?
The Big Apple’s mega high price tag can be explained by one of the most basic concepts of economics – supply and demand.
Brokers claim that many foreign buyers are investing in NYC properties due to the proximity to colleges and universities. This is increasingly the case particularly among the Chinese rich who seem to be pouring money into high-ticket properties, in many cases without even seeing them first.
Another reason may be high returns and apparent reliability of NYC’s real estate market. Extremely wealthy Chinese are bringing their money to NYC, instead of investing in problematic real estate market in China.
According to New York Post, real estate professionals, mostly in New York and California, are preparing for an even larger surge of international buyers after a Beijing real estate partner translates all Zillow listings in America into Chinese language.
So, even though it is hard to believe, New York City is not just a safe investment, but also a bargain, to the international rich. Therefore, the prices that seem enormously high to the majority of us remain a great deal to global buyers.
Whether you are looking to move into one of the high priced NYC properties or need a more affordable home – it makes good business sense to look into NYC real estate attorneys to help you navigate through these complex transactions and protect your assets and you rights.
The Levin Law Group’s experienced, competent NYC real estate lawyers can assist individuals and business entities in a broad spectrum of residential and commercial real estate transactions throughout New York State.
Contact our real estate attorneys in NYC and other nearby areas today:
https://ylevinlaw.com/practicerealestate.html
Source: http://www.cnbc.com/id/101700832
*The contents of this document are not legal advice and are not to be treated as such. Before making any decision or taking any action, Contact Levin Law Group for actual legal advice.