Real Estate Agent · New York City · Member since 2020 · 818 posts · 639 votes
5y
Absolutely, the FED has printed so much money we have seen assets inflate across the board. Stocks and Real Estate included with the exception of large cities (NYC, San Francisco). They will catch up, it is a matter of time. Additionally, a lot of the folks who moved away to New Hampshire and Pennsylvania and such are already getting board and coming back.
Sure NYC suffered due to COVID, but you want to buy when there is distress. IPlus, the vaccine is getting rolled out which will curb the spread tremendously. Now is the time to buy.
Cap rates came all the way down to 3% (or below!) during the "boom" times but COVID has loosened everything up and now 5% can be had in Manhattan, 6%-7% in Brooklyn and even 8% in the Bronx. Nationwide rates hit a low of 2.7% - so there has really never been a better time "spread" wise.
It is certainly the most attractive it has been in years from a cash flow perspective. If you are seeking out asset accumulation and equity appreciation over the long term then there are certainly fortunes to be made. And there is still plenty of cash flow opportunities in the outer boroughs if you buy right!