It was bound to happen sooner or later.

The real estate bust of 2008 is finally having an impact on one of the last hold outs, New York City.

Manhattan, in particular, seemed all but immune to the current subprime mortgage mess mostly because foreign buyers were able to take advantage of the declining value of the U.S. dollar.

But, now, even that bubble has apparently burst.

The Real Estate Group in New York reports that rents in Manhattan decreased last month by more than 7 percent.

The last time rents actually went down in Manhattan, George Washington was president!

Part of the reason, no doubt, is that, even in New York, there is somewhat less demand for expensive condos and co-ops leaving many to the rental market. That translates into lower prices.

According to Multi-Housing News, there are some who believe the situation in New York will now worsen..a lot.

It quotes James Hughes , dean of the Edward J. Bloustein School of Planning and Public Policy at Rutgers University as saying that housing “might be twice as bad as the period after the 1980s real estate bubble.

One bright spot here…according to Huges, those who held on to their real estate property throughout the last bust and subsequent upswing saw their houses, on average, double in value.

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Tags: manhattan, new york city, real estate, rental, rutgers university

Thanksgiving is a time of year where people will traditionally pause and reflect and give thanks for their good fortune. For me this is relatively easy because I have so much to be thankful for. Many people are not as fortunate, some a victim of circumstance and others suffering the consequences of poor choices that they have made in their life. However there are many that have been blessed with good fortune yet do not seem to realize or appreciate it.

There seems to be an insatiable appetite for news about celebrities behaving badly and getting into trouble. The media is all too happy to feed this hunger. There are so many stories about spoiled brats whose main claim to fame is an accident of birth, their parents were rich and famous. Where is Paris partying this weekend? Is Lindsay back in rehab? Have any pop stars shaved their head, molested children or put their own children in danger? This is the most important news of the day? It’s absolutely sickening.

To me some of the most disappointing figures in the public eye have been professional athletes. For generations children and adults alike have looked up to these athletes as role models. There have always been some athletes that exhibited an unsavory side, but lately there seems to be an over abundance of prima donnas who seem to think that their superior skills on the playing field give them carte blanche off of it.

Baseball home run king Barry Bonds, long ago convicted in the court of public opinion, has been indicted on perjury charges. Baseball is in the midst of a steroid scandal involving an unknown number of stars that used the drugs to enhance their performance. Roger Goodell, the new commissioner of the NFL, is implementing a new personal conduct policy in response to several scandals that rocked the sport. Adam “Pacman” Jones was involved in many off-field incidents, which culminated in his guilty plea to charges stemming from a shooting incident at a Las Vegas strip club that left a man paralyzed. Tank Johnson, formerly of the Chicago Bears, was suspended for a weapons related incident. At times it seemed that so many members of the Cincinnati Bengals had been arrested that they would have a hard time fielding a team at all. Track star Marion Jones pled guilty to perjury charges, which effectively ended her career. Former heavy weight boxing champion, Mike Tyson, is in trouble again after being arrested on drug charges. After making more than $300 million in his career, Tyson is practically bankrupt. Let’s not forget OJ Simpson, he’s in trouble again. Although it may look like a rerun, he is facing a trial in Las Vegas on kidnapping, robbery and weapons charges. It never seems to end.

To be fair, there are many professional athletes who do outstanding things for the community. Many stars have charitable foundations and participate in many worthwhile endeavors. Hurricane Katrina brought out the best in many of them including basketball stars LeBron James of the Cleveland Cavaliers and Dwayne Wade of the Miami Heat. Baseball Hall of Famer, Roberto Clemente, was killed in a New years Eve plane crash back in 1972 while delivering aid to earthquake victims in Nicaragua. Would we have heard of his humanitarian efforts if he hadn’t been killed? It just seems that all of the negative news prevails and that the media has a penchant for reporting all of these stories that the public can’t get enough of

What has all of this got to do with real estate? I’m glad you asked! Last week I traveled to New York for a wedding. Before moving to Las Vegas I had lived in the region my entire life and I have maintained an interest in the area, especially in matters concerning real estate. While in NY, I heard about a real estate company called Omni New York, LLC ( www.onyllc.com ), that specializes in the acquisition and rehabilitation of inner-city apartment buildings. Being a rehabber I was naturally curious about what they did but the more I heard the more interested I was in their story.

New York City has an extreme shortage of rental housing, much of it rent controlled, and as such many building owners are not very motivated to keep the buildings in good condition. Many buildings that provide housing for low-income tenants are funded by the Federal Government through the Section 8 program and are required to maintain the buildings to a certain standard. However many of the building owners will take the subsidies without performing the necessary maintenance which cause the properties to deteriorate and ultimately results in the loss of Government assistance.

This is where Omni comes in, they will purchase these distressed properties with the intent of rehabbing them. The primary aim of the company is not to buy buildings and get the tenants out so they can repair them and make a fast profit. What they do is bring the units up to acceptable standards while allowing the tenants to remain in place. This helps to provide much needed housing for low-income citizens of New York City.

While this is a very worthwhile objective, what captured my attention was one of the primary individuals in the project. The company was co-founded by former baseball all-star Mo Vaughn. As one of the top sluggers of his era, Vaughn earned millions during his career. It would have been very easy for him to sit back and enjoy his time in retirement, instead he chose to involve himself in a project that gives back to one of the communities he played in.

Had Mo Vaughn been arrested for being involved in drugs or beating his wife or abusing children it would have been all over the news. Yet here he is doing something of great importance and nobody notices or even seems to care. How many other athletes, movie stars or other celebrities make contributions that go unnoticed? The answer is an awful lot, maybe it’s time we took notice of their efforts instead of gloating every time one of them gets into trouble.

Mo Vaughn understands the meaning of giving thanks for what he has and giving back to the community that helped him earn it. Do we? This Thanksgiving season let’s remember to give thanks for what we have and give back where we can.

Never in the field of human conflict was so much owed by so many to so few. – Winston Churchill (speaking of the Royal Air Force after the Battle of Britain)

Tags: Mo Vaughn, new york, New York Real Estate, Omni New York, rehabber, Rehabbing

There is a land where the normal physics of real estate does not hold sway; a place so special, those who reside there are seemingly inoculated from the everyday concerns of mere mortals.

The housing bubble may burst; the credit may crunch; the mortgage industry may go so far south that Bolivia would be akin to the North Pole. And yet, on this special island, those charmed through luck, perseverance or family fortune can go about their lives all but oblivious to the calamity of the outside world.

That island is, of course, Manhattan. (Come on now folks, you didn’t think I was talking about Cuba, did you?? Only Michael Moore would think that!)

In a bit of understatement worthy of the Pentagon reporting Iraqi war casualties, senior brokers say Manhattan is “holding its own,” says The Real Deal, which tracks such things.

In fact, says the Real Deal article, Manhattan is “proving its exceptional nature once again.”

Duhh. Well, yeah! What else would it do? Manhattan is , as the Sunday New York Times proclaimed in its Sunday magazine section, “where the haves live!” Everyone else presumably lives in Newark or places even further from Oz.

Take just one example: According to the Times, “in the area from 56th to 59th between Madison and Park, average household income increased almost 700 (that’s seven HUNDRED) percent between 1980 and 2000.” Think that might keep real estate prices high?

Even Harlem is “special.” According to Realty Times, “Harlem is still rife with investment opportunities,” and quotes one commercial real estate agent as saying that Harlem’s “profitability has not suffered significantly…”

It is not only possible, but likely, one could spy an 18 year old emerge from a gleaming 5 million dollar one bedroom condo in the former Meat Packing district—now the “in place” to live and play in Manhattan for the under 40 crowd–affording his new abode courtesy of either wealthy parents or foreign money or both. After all, there are not many 18 year olds who can afford 5 million dollar condos on their own dime.

For real estate developers, this is great. No shortage of cash and credit bloated customers in line for Manhattan properties. Of course, this does tend to drive up costs for those who actually live on Earth as opposed to floating above it. No matter,though. What matters is, Manhattan , at the moment, is like no other place in the United States–on this charmed isle, apples fall upward once detached from trees; water flows uphill to the surprise of no one and the expectation of everyone; and the mortgage/housing/credit “crisis” is nothing more than a burp for which a bit of Alka Seltzer will set all right.

As for Brooklyn—–don’t get me started.

Tags: harlem, harlem real estate, manhattan, manhattan real estate, new york city, New York Real Estate, nyc, real estate

Earlier today I read a discussion about someone in New York City who was looking for a real estate buyers agent to help them find a co-op. In their search, they found a realtor who agreed to help them, but required $495 up front to work with him. I, like many other people I asked about this, was up in arms about the down payment request, and decided to do some homework to find out if this was indeed,”kosher”.

My first thought was to contact the local board of realtors and got in touch with the Manhattan Board of Realtors. No one there was able to tell me if this was indeed legal, but recommended I contact the National Association of Realtors (NAR). I called up the NAR and asked a few people about this situation. Again, not one person there was able to help me out. Astonished, I asked who might know what the law/rules were in this situation, and was told to contact the State board. Like a busy little bee, I called the New York State Board Of Realtors and posed the same inquiry after telling them of my misadventures calling the other boards and getting nowhere. What did I find out?

NOTHING!

“Unfortunately, there is no one here who can answer your question,” I was told. The person who knew the answer wouldn’t be in until Monday, but I could try his email and maybe he could help me out in the remote chance he checks it.

Essentially, I found out that there is one person in the entire New York/National Association of Realtors system who knows if it is okay to charge a retainer fee. Is it only me, or is that just really hard to understand? The National Association of Realtors is a huge monster; it lobbies the US Government, has a massive marketing budget, and is a powerhouse in the world of business and real estate, yet one man holds the key to their secret information!

I experienced the wrath of being a Realtor first-hand for a few years while in California. In order to reap the (in my opinion) sole benefit of joining this group, access to the MLS, I had to jump through hoops, spend a small fortune, and join multiple local boards of realtors. It was an extremly frustrating process!

I stand baffled by the situation, and wonder how it is that there isn’t but one sole in the organization who can answer this mystery.

A few days have passed in 2007, and there are a few stories I think are worth a look. Enjoy!

• Manhattan real estate market remains strong
  The Manhattan Market is INCREDIBLE! “The average price of a Manhattan apartment rose to more than $1.14 million in the fourth quarter of last year, up 5 percent compared to the same period the year before, according to two reports released Wednesday.” In addition, “The average price per square foot in Manhattan rose to $1,050, topping $979 in the fourth quarter a year ago and setting a new high.” WOW!
• Construction activity dips as housing falls for record eighth straight month
  “Housing has been in a slump this year after a prolonged boom that was fueled by the lowest mortgage rates in more than four decades. However, that boom triggered increased speculation, driving home prices up sharply in many parts of the country.”
• 2007 Predicted to be Poor Real Estate Year in California.
• Subprime Lender Implosion: Bad Omen For Housing Market
• Foreclosures Skyrocket in 2006 according to Default Research. This is nothing new, but there are a few things in the report that are worth reading.
• “The Beginning Of The Domino” In California
  A look at how the California market is begging to topple (compiled from various news sources).

Tags: construction, estate, foot, Foreclosures, housing, manhattan, market, per, price, real, spending, square, US

An article in the Sunday issue of the New York Times (“A House Divided:  Uncivil War on E. 73^rd Street,” December 10, 2006) describes a dispute between a landlord and an unhappy tenant in a tony Upper East Side brownstone of New York City.  A battle like that is always a case of someone’s word against the other, but if you read through the article, it becomes easier to decipher who is in the wrong, so to speak. 

Mr. Pavia, the landlord, rented out some floors of his luxurious brownstone to several tenants.  Along came Mr. Couri the tenant.  Mr. Couri started to have problems with a longtime tenant, a gay designer, who lived above him, complaining of noises, music, and partying.  He sent the designer letters citing “lies… late p.m. homosexual escapades,” and threatened to disgrace him by writing to interior design agencies and magazines.

The designer, who never had problems with other tenants or Mr. Pavia before, moves out.  Mr. Pavia eventually sued Mr. Couri for obnoxious and harassing behavior, and Mr. Couri countersued by saying that his landlord refused to disclose the rent-stabilized status of the building.

The article, however, mentions that Mr. Couri, who dresses impeccably in a 3-piece suit, has a history of suing people (nearly 150 times since 1972).  He also has pleaded guilty in the past of defrauding a bank.  If Mr. Pavia had done a background check on him, the problems might have been prevented.

We’ve also had some issues with tenants.  Years ago, when my husband was looking to rent out his apartment, a friend of his who worked in theater introduced to him a young man who was an actor.  I even met the guy; he was good-looking, personable, a little jittery maybe, but seemed like a nice guy.  But jittery was the part we should have focused on.  He turned out to be a crack addict.  Luckily, his family stepped in and moved him out so we didn’t have to begin eviction proceedings.

Unless you personally know the potential tenant well, a background check on a potential tenant should be performed.  A check on credit history and from a tenant-screening agency can be done easily and should be done even when a tenant comes with a referral, as ours did.  For more information, check out on what landlords should know from the FTC.

Tags: biggerpockets, city, dispute, East, landlords, New, renter, Side, tenants, Upper, York

Living in New York City can be a strange experience.  Your life as a nobody can literally intersect with the lives of the rich and famous.  It’s probably the same everywhere else, but because of the city’s population density (8 million crammed into 5 boroughs) and its concentration of celebrities, this can feel more intense.  For example, your child may very well go to school with children of famous parents.  There is a shock I get from looking at the school directory and seeing their addresses and phone numbers listed, just like that.

I admit that I am one of those uncool people who get very excited about seeing celebrities.  But since in New York, you’re not supposed to care or act like you even know them, I try hard not to stare with a gaping mouth.  Sometimes you are unexpectedly offered a glimpse into their lives.  A few years ago, my husband and I went to look at an apartment in the East 60’s, between Madison and Fifth Avenues.  It was in a nice, prewar walk-up, and the seller’s broker said nonchalantly, “Elle MacPherson lives here.”  But it was hard to miss; her pictures were all over the apartment.  We opened the closets, and her shoes seemed extraordinarily huge.  After all, she is a tall woman, and a runway model at that.  Otherwise, the apartment seemed quite ordinary.  There was a child’s high chair in the kitchen, toys lying around, and even towels from the Ritz Carlton Hotel hanging in her bathroom.  It was good to know that even celebrities pilfer items from hotels, like we do.

On the Upper East Side, it’s mostly the neighborhood celebs that are out and about.  Almost every other morning, I see Deborah Roberts, the TV reporter and Al Roker’s wife, taking their daughter to school.  Others I encounter a lot include Phoebe Cates and Woody Allen (and Soon-Yi). 

Certain types tend to favor certain neighborhoods.  The men of the NY Yankees, for example, seem to all live in the East Midtown area, in the 59^th Street to the 46^th Street range.  Did A-Rod, Bobby Abreu, Johnny Damon, Derek Jeter, and Hideki Matsui all use the same broker?  The exception is Jason Giambi, who lives on E. 77^th Street (in a building we also looked at!)  Incidentally, I’m proud to say that I lived in the same building as Derek Jeter when he was a rookie (and not making the megabucks he is making today).

But the really happening neighborhood is downtown.  Downtown always had the more artsy vibes, and that’s where you’ll find the highest concentration of celebrities.  In recent years, there are more notables raising families there, like Sarah Jessica Parker and Matthew Broderick, Richard Gere, David Bowie and Iman, and Julianne Moore, giving it a more earthy, kid-friendly aura.  Downtown is certifiably hot, and even the uptown blue-blooded types are moving down there.  The celebrities’ influence on real estate is even more pronounced in Brooklyn.  It’s said that Heath Ledger single-handedly raised property values on the street in the modest Boerum Hill area in Brooklyn where he lives with actress Michelle Williams.  His neighbors are Jennifer Connolly and Paul Bettany. 

If you want to check out who lives where in NYC, see the Star Map, courtesy of New York Magazine, which says that the city is attracting more celebrities than ever before (“Notes on New York’s Celebrity Infestation,” August 14, 2006).  It seems to be true, and that’s probably good news for property owners and gawkers alike.

travel guide to New York and its neighborhoods