All Forum Posts by: Eric Hajdu

Hey Allan, I lived in New York for over 25 years now, and I agree with the general premise that it's demise has been greatly exaggerated by news stories and those who don't live here.  Every cafe is pretty much packed, traffic is terrible again, and you can't get a seat on the train.

All that said, the rental market has certainly softened, I know this from experience of trying to rent out one of my units and chatting with my fellow NYC landlord buddies.  Most of our tenants are asking for reductions or renewing at 10-15% less their previous lease price.  The incredibly low interest rates have certainly helped keep the sales market healthy, especially the townhouse segment.  

As far as people going back to work, I absolutely notice a huge uptick in people being dressed up, which I assume means back in the office.  I believe the city is as crowded as ever, but there certainly has been a demographic shift, where you see less families and much more 20 and 30 somethings, although that could just be me showing my age.

If your working in NYC, I would consider renting in the city and investing for cashflow elsewhere.  There is a very strange phenomenon happening here currently where rents are dropping, but property values are stable.  I have a few units in class A Brooklyn neighborhoods, and I just had a tenant leave after 11 years.  I have been trying to rent it for a month and have gotten little to no interest, even after a significant remodel and price cut. So, I have decided to list it for sale for about 3.5x what I paid for it 20 years ago, and I will roll that money into a different opportunity, that will most likely produce 2x the rent roll.

I had traded up in NYC over the years, and finally bought the big condo with statue of Liberty views, outdoor spaces, deeded parking, etc., and honestly I now regret it.  I will I would have taken all that capital and rolled into an out of state cash flowing property, and rent here to basically live for free.

All that said, I was talking with my dad earlier today, and he bought his home in rural NJ around the same time I bought the rental condo I was describing above for about the same purchase price as me, and he thinks he would just about break even, while I more than tripled my money.  NYC will always give long term appreciation for wealth building, but the numbers are horrific as a traditional cash flow investment.  Best of luck on your journey, and just make sure you buy something!