the U.S. Treasury Secretary warning recently that “we have yet
to see the bottom” of the housing market, one might think that now is
not a good time to purchase Gaur yamuna city flats a home in New York City. Strange as it might
seem, though, the consensus among economists is that housing prices in the
city are going to keep climbing for at least the next several years.
New York City has been almost completely immune to the subprime crisis because
of its famous housing co-ops. While the national housing market has suffered
the consequences of banks willing to recklessly hand out mortgages even to
those with low credit and no collateral, the New York City housing co-ops,
which own about 85% of the apartments for sale in the city, have much stricter
standards in regards to who they allow to purchase their apartments. These
tighter rules have successfully protected the city from the real estate turmoil
that has engulfed most of the national market.
Indeed, even the apartment buildings in New York City that are not cooperatively
owned have benefited from the co-ops’ effective containment of the subprime
turmoil. More and more buildings being built these days are condominiums,
which offer much more flexible ownership rules – such as no prohibition
against subletting – and lower fees. Though the we can thank the
co-ops for saving much of the city’s real estate market, it is the condominiums
that usually make the most sense for mobile buyers or investors.
The co-ops and condominiums are just half the story, though. With the
U.S. dollar’s recent plunge against all major currencies to make this current
quarter the ideal time for Europeans to buy a home in the city. Housing
prices in New York City may be at record highs and only climbing for Americans,
but for those earning a living in pounds or euros, very safe yet high yielding
investment opportunities abound throughout the city in the form of apartments
Indeed, major European investors are taking note of this almost unique confluence
of events and purchasing large amounts.
Prices in the city are not expected to get much lower for holders of euros
or British pounds, either. With the dollar falling about nine cents
against the pound and twelve cents against the euro this year alone, most analysts
believe that European and British central banks will soon be forced to lower
their interest rates. When this happens, speculation will end about a
round of cuts in interest rates by the Federal reserve that are unmatched by
foreign central banks. A huge cloud over the dollar will be lifted, which
will lead to a significant boost for the dollar in the foreign exchange markets.
While it is possible that the dollar will continue to decline in value even
after actions by several major foreign central banks give it a boost, analysts
doubt its decline will be faster than the rise in property values in New York
City. This is especially true in Manhattan, where a record price boom
is showing no signs of abating in the near or distant future.