OMG NYC Real Estate?
I usually do my little weekly NYC real-estate thing here… But I thought I would post a little something in regards to the latest issue of Fortune magazine and their cover story about how Tom Barrack is pulling out of US real estate. What can you say…the guy has literally made billions in the US market. Flipping at it’s finest. In short, the whole write-up revolves around Tom’s feeling that there is too much amateur money chasing deals. There are of course still good deals to be had and money to be made, especially in niche markets, but in general it’s becoming an overcrowded market. Too many condo developers doing pre-construction sales that won’t be done for another 18 – 24 months…with ever increasing construction and materials cost that will ultimately raise the final price of the units causing all those amateur speculators to back out. Leaving a ‘glut’ of empty and over-priced condos on the market. Yikes. Interesting though, this could introduce a whole new renter demographic to the game…which can be a great thing for investors, but not for the overall economy. Whatever though. Check the link below…full article, like 5 pages long, good time waster.