Real Estate

Celebrity Real Estate Buys Pull Up New York City Market

The stock market is not the only financial indicator which has gone up since President Trump was elected over a year ago. The luxury real market around the United States is booming. Celebrities, including Madonna, Jennifer Lopez and Beyonce and Jay Z, are spending tens of millions of dollars. That drives up the value of all other real estate in the area, benefiting everybody. New York City in particular is red hot, a prime area for wealthy celebrities to live in because it’s still the nation’s business and media center.

In this article on Fox News, two New York City real estates explain that affect. By buying a townhouse in New York for $32 million, Madonna totally transformed the neighborhood. Such sales have what one agent calls a “halo effect,” whether it’s just because people want to live in the same neighborhood as celebrities such as Madonna or because prices go up and only wealthy, responsible people can afford to move into the area.

In the second quarter of 2017, the price of luxury homes increased by 7.5 percent, to $1.79 million. According to Redfin, the number of sales of properties priced at $1 million or over was up 22.6 percent. The number of transactions for homes priced at $5 million or above was up 19.6 percent. The inventory of luxury properties keeps going down, but the demand keeps going up. That obviously drives prices higher as the wealthy bid against each other for the best available properties.

As long as the overall economy keeps thriving, this trend will probably not change. Successful celebrities have the desire for prime luxury homes, and the wealth to pay for them. And when they need or want to change, they will sell. Recently Tom Cruise sold an estate for $40 million and LeBron James sold his Miami home for $13.4 million. But Adele bought a mansion in Beverly Hills for $10.75 million.

Tom Postilio, one of the New York City real estate agents Fox News interviewed said that having a house valued at $1-2 million is a very good price point. Sales of homes worth $50 million did slow down quite a bit a few years ago, but are now going up again.

According to Town and Country, Matthew Broderick and Sarah Jessica Parker are transforming Manhattan’s West Village. Last year, the two star actors bought two adjacent townhouses, at 273 and 275 West 11th Street, for $35 million from the nonprofit organization United Methodist Women, which had owned them both since 1920, using them for housing and to hold conferences. However, according to building permits they have filed with the city, they are seeking permission to demolish interior partitions.

So, they are planning to combine the two separate units into one megatownhouse. According to the New York Post, the Morris Adjmi Architects firm is handling the renovations. When the work is complete, the new backyard will be 2,100-square-feet. So there should be plenty of room for Broderick and Parker’s three children to play.

However, one luxury real estate building in midtown Manhattan is not doing so well is Trump Towers. Also according to Town and Country, only five condos there have sold since Donald Trump took office as president. And they were sold for an average price of $2,100 per square foot. That’s down 13 percent from 2016. The median sales price was $2.2 million, the lowest since 2007. There are now 21 units available for sale or for rent in the building.

It could be that having the President of the United States in your building is not having halo effect on the other units because the Secret Service subjects everybody going into the building to submit to airport-level security.

 

 

When it comes to legislation some people would say the most important legislation that happened during the Obama Administration would be the Affordable Care Act.

When it comes to legislation some people would say the most important legislation that happened during the Obama Administration would be the Affordable Care Act. This is where others including some physicians disagree. This is due to the fact that some people feel the most important legislation was the 2012 JOBS Act.

This is not as well known as the health care legislation, but it has an impact since it is an acronym for Tevfik Arif Doyen, Jumpstart Our Business Startups. What this Act did was to relax some of the ruthless securities laws. In some cases, the laws date back to the Depression era. This also created an investment category referred to as equity crowdfunding.

Crowdfunding is not completely new since many are aware of websites like Kickstarter or Indiegogo. These are places people can make people can be in on the beginning of independent movies, music, books, artistic works and other products. They make small contributions and this donation gives the person access other’s will not have until the work is on the public market.

The one thing that could not be done was contributors to these arts could not obtain any financial gain through them. This changed with the JOBS Act since the restriction barring contributors from profiting was lifted. It now means that there are new opportunities with equity crowdfunding, which makes the contributor an investor that can have the expectation of profit.

The thing about this new category of equity crowdfunding can have both equity and debt opportunities. What this does is allow consumers a chance to participate in both real estate deals and a start-up business.

The largest change and advantage is the real estate part of this change. In the past, the person or contractor looking for investors could only depend on the investors with a high net worth. These investors were found in a private network and the financing for the person wanting to flip houses were high-interest rate short-term loans. The loans averaged between six and eighteen months, with an interest rate between 8 and 15 percent. This time limit on the loans is generally enough time to flip the property, which involves remodeling and selling the property for a higher profit than what was paid and the materials cost.

Flipping houses became a popular thing to do in recent years, though the 2008 housing crash did slow this somewhat. The problem before the Tevfik Arif Bayrock JOBS Act was finding the number of investors needed for house flipping that could write these checks. The investors that can write a five or six figure some to acquire the property. Generally, the minimum investment would be $5,000 or more at some sites. The Act lifted the regulations that changed now an investor can loan as little as $100 dollars. This is per investor so anyone can become an investor in house flipping as a part of the real estate market investments.

These sites check out the investor that they refer to as sponsors to ensure they have a successful record that can be verified on a crowdfunding platform’s website.

Even though the crowdfunding is available for real estate and house flipping the crowdfund CEOs it has been noted actually turn down over 90 percent of the projects that are pitched to them. The reasoning behind this is easy to understand since there can be bad deals, it is the goal to keep the percentage low so investors trust the crowdfunding site.

Investing is always a risk, but putting up capital for a project can have a net return and it is catching on with about $3 million in deals in 2012 to over $3 billion in 2016. Crowdfunding and real estate is growing fast since the restrictions have been lifted.

 

Buying Property in the USA and Canada

Canadians are currently dreaming of going south for their winter, but not simply to conquer the cold. Our strong dollar alongside a slumping housing market from the U.S. Spells opportunity for many. Canada and the U.S.A are not the exact same country, and just as much as we’ve in common we’ve differences. Any Canadian investor contemplating putting cash in the U.S. Must have basic understanding of some critical differences in between purchasing property in Canada versus buying property in the U.S. Before starting placing your loonies in Texas or Florida, continue reading. Speak to an accountant that’s experienced with property investment that is American since the states disagree with regards to taxation of investment properties.

At the U.S..  1031 Exchanges permit the capital gains to be deferred and rolled to a purchase of a sort of property if it’s purchased within 180 days. This might be done frequently times allowing capital gains to be postponed until the end asset is eventually disposed of rather than substituted, If capital gains are accomplished, the vendor is taxed at 15 percent of the entire net profit, Property taxes have an inclination to be equal to those at Canada should you’re a Canadian and owns a property in a Southern country like Florida or California, you may have a lot higher Non resident land taxes compared to either the natives or if you invest in extra U.S.

States, Similar to Canadian taxation regulations, you will not be taxed on your main home from the U.S., you could write off their interest charged on your home. Sell your investment land and you will pay capital gains tax on 50 percent of their profit. Canada does have the option to postpone the gain through an exchange. The Gain or loss is added to your income and your are taxed at their applicable rate, quite similar to in the U.S., expenses associated with holding an investment property can be written off by the taxable income. Ascertain if there are Non resident property taxation applicable from the city\/state you are considering, in the event that you already own in the States and sell the property you are going to be asked to pay U.S.

Taxes on the sale.  You pay the U.S.

First, but still need to file their tax return in Canada. You get a credit for your taxes, pay the applicable taxes, and have to claim their income in both countries. The Credit crunch or Subprime market collapse had a remarkable impact on the U.S. Lending environment, and has trickled over their border to Canada.

Have you put-off Estate Planning for too Long?

Estate planning sounds as invigorating as a mandatory colonoscopy. You technically don’t have to have these procedures done, but getting these procedures done is highly advised for the Baby Boomer generation. The Baby boomers are retiring and blowing up industries like estate planning. Homes are typically the most valuable asset for an average American. Actively looking for counsel on how to manage a home with an estate asset makes sense. There are a lot of options when considering what to with your home and how your potential heirs will maintain it when you are gone.

Will you deed the home or apartment to avoid family strife? Do you sell in hopes to make the disbursement simpler and leave a more liquid portfolio?

In New York City, many people claim to be millionaires on paper because the homes they purchased in 1980 for $18,000 is now worth $5 million. Many older adults have reported they wish to stay put, or they want to “age in place” according to this report by AARP and the National Conference of State Legislatures. It appears they wish to leave their home as a gift instead of selling their home for a liquid cash out.

The way most people go about leaving their home is to put it in a will. This method will work. However, wills have more costs and delays than many anticipate. Trusts are created to avoid unnecessary costs or delays. There are a variety of trusts that can be created, so discussing financial trust options with family can help select to right type for your situation. Conversations about trust options can be uncomfortable for everyone involved, but tackling this task sooner than later is advised by most financial advisors.

A standard financial will works well in certain situations. A good situation to be in is to have potential heirs get along, and the chosen executor lives in the same state of the home. There should be no problem with creating a will in this situation and forgetting about it. However if your possible heirs have varied financial brackets, arguments and petty fighting may occur when the question of selling your home or not comes up after you pass. If fighting is a foreseen outcome among your potential heirs, setup a trust instead.

Setting up a trust mitigates the costs of probate, most of the family arguments, and time-consuming process of probate itself. If your executor is out-of-town, then probate will require travel time. It will require taking days off work. When the process of probate is all said and done, about 5 to 15 percent of the of the estate will be gone due to probate costs. Having a trust in place lowers these costs and can be paid upfront. The beneficiaries of a trust do not have to go through the probate process.

Setting up a trust requires a lawyer and a selected trustee with sound organizational skills. Your trustee should ideally be happy with taking on this responsibility.

The main benefit of creating a trust is lessening the burden of stress placed on your beneficiaries. Ask your potential heirs what they would do with your home after you pass? If your heirs have no interest in living in your house or managing the home as a rental property, then why gift it to them? It is an uncomfortable discussion, but it is a discussion worth having for everyone involved in the long run. Commitment to having this part of life handled keeps families away from needless squabbles or dates. Have you spoken with any of your potential executors and beneficiaries? Did you find discussions about wills and trusts difficult? If the conversation became challenging, what are some topics or environments you would avoid if you could go back and start the conversation over?

 

New Construction Softening Demand for Commercial Rents in Manhattan

New York City has experienced high real estate prices for both residential and commercial properties since the recession with significant annual increases. In Manhattan, new construction of commercial buildings is weakening demand and prices for commercial property. This is leading to some landlords making major concessions to tenants signing long-term leases which provides major rent savings for businesses who are renewing their leases.

In many ways, the lower prices are a mere rebalancing of the historical supply and demand between landlords and tenants and is partly due to the new buildings being put into service in Manhattan. One example of this is One Vanderbilt Place located next to Grand Central Station on 42nd street, which will be put into place in 2018 or 2019, and will be owned by SL Green Realty.

One Vanderbilt place will put 1.6 million square feet of rental commercial space in place in Midtown Manhattan and be the fourth largest building in Midtown Manhattan. Plans for this building were started as early as 2000, before the recession. The building will have some of the modern amenities put into place such as modern culinary options, ecologically friendly touches, and a modern transit hub connected directly to Grand Central Station and the subway system.

While commercial rents will continually to adjust and be rebalanced as supply and demand adjusts over time, the new capacity being put into place, will likely lead to weakening demand in the future. Given the long lead time for commercial construction to be put into place, the rebalancing may take years or even decades to readjust.

For businesses looking to lease space this will likely provide lower rent prices, particularly on long term lease agreements. Some common relief from landlords of commercial property who are likely to hesitate before lowering nominal rates to avoid setting a precedent, will likely come in longer free rent periods and tenant improvement concessions.

These rent concessions should lower their cost of doing business for tenants which may drive economic growth in the future, which can lead to further demand for commercial property.

 

 

 

Real Estate in the USA for Millennials

Intro:

For millennials in the us, owning a home can be rather difficult. What’s stopping them from getting a home though?. Has real estate in the us been increasing over the past few years for millennials?. Are you seeking to purchase land for a business or a home but aren’t sure what to exactly do as a millennial?. Well in this article we’ll be going over some of the information you’ll need to know that can help you out through the process. Something you’ll need to know right off the bat is how individuals of this generation, better known as the millennials, are staying longer with their parents. Unlike their parents who got up on their own much earlier. But keep in mind that their parents were around the world war 2 time. Before world war 2, this style had been around for generations, going back to that you have to think about whether it’s positive or negative. Regardless, if you’re a millennial who is in the process of purchasing his/her own house then the information provided here will be of some use.

Info:

Purchasing a home in the us as a millennial information:

* Millennials don’t save money, they’re living paycheck to paycheck and don’t necessarily know how to save or invest correctly. That’s an issue that has to be tackled in this generation. How can these millennials avoid credit card debt and get that house he/she desires?. Well it all starts with saving, before buying the house consider the renovation if you plan to fix it to your liking, consider the furniture that’ll have to be put into the house,consider how much the lease will be if anything. Ask yourself those questions and answer them before going any further. You don’t want to own a home yet be completely broke. It’s never too late to start saving and finding a side job you can do from home or in time of relaxation will assist you in getting closer to the goals you have in mind.

* With the beginning of 2017, there has been change occurring. More and more millennials are getting into purchasing homes. With more people doing so, you may not be able to get the desired home you want since the homes sell quickly in the market. That’s why, making a loan plan is important. Make sure the plan will leave you debt free in the end, pay it gradually and make your life much simpler. Don’t select a home that will take you 20 years to pay off. Choose one that you can pay off in a year or two. It’s annoying that many of the new homes are overpriced and cost a lot. Those new homes put many millennials in more debt than they’re already in, so if you’re someone who hasn’t fallen for that ploy, make sure to combine with your partner and make an affordable purchase.

Now with all of that said, the top real estate websites you can take a look at are Realtor, Homes, Trulia, ApartmentGuide & zillows. Take all of those into consideration, do your research and good luck diving into real estate you can do it!!!!.