April showers bring May flowers and one of the most beloved festivals in the country – The Tribeca Film Festival. The annual Tribeca Film Festival is back for it’s 15th year, and set to woo over 3 million film lovers in Lower Manhattan from now until April 24. The mission of the festival is “to enable the international film community and the general public to experience the power of film be redefining the film festival experience”. You won’t just experience the latest must see films – running the gamut from documentaries, family films, shorts and narrative features – but also the Tribeca Film Festival Hub embracing a world of Virtual Reality! Not to mention the Tribeca Games showcasing the creativity and innovation behind the world of online gaming. You don’t want to miss it!
The 2016 Wealth Report is out and it has some interesting tid-bits of information. In this 10th anniversary issue, it looks to the past and to the future to highlight trends and takeaways that could impact personal assets from its survey of over 600 wealth managers from around the globe.
First, let’s start with the definitions:
- Millionaire = having a net worth of $1MM
- Multi-millionaire = $2MM-$10MM in net worth
- High net worth individual = $10MM-$30MM
- Ultra high net worth individual (UHNWI) = $30MM+
Without summarizing the whole report, here are some notable quotations from it, starting with a macro perspective and then getting more micro, particularly as it pertains to NYC real estate:
- “Growth is slowing and the wealthy are under increased scrutiny, yet significant opportunities remain for those who truly understand how to identify, understand and serve this group.”
- “There are now more than 13 million millionaires across the globe, up from 8.7 million in 2005; yet new data suggests the next decade will see fewer UHNWIs created.”
- “Over the past 10 years, 54% of respondents said their clients had increased their allocation to residential property. Just over 40% expected it to increase further over the next 10 years, with 30% of clients likely to consider a residential purchase in 2016. When asked what factors had been growing in importance as a reason for UHNWIs to buy residential property, the most popular (55% of respondents) was as an investment to sell in the future. Investment diversification (46%) and as a safe haven for funds (47%) also scored highly.”
- The transition to higher rates in the US is likely to be emulated by other strongly performing economies, including the UK, Australia and Canada, although expectations are being regularly pushed further out in time. The expectation of higher rates helped boost the US dollar throughout 2015, which weighed on inward investment into the US. “A slowdown in demand was inevitable, but the US still remains hugely attractive as a global market,” says Sofia Song, Head of Research at Knight Frank’s US residential partner, Douglas Elliman.
- “International capital investment has increased significantly into New York City over the past three years. It now accounts for more than 16% of all transactional activity in the US. In the past 12 months, 38% of all Manhattan real estate investment has been from international investors. UHNWI investment in New York is a significant part of that and has come predominantly from China, Singapore, Brazil, Canada and the Middle East.”
- Brooklyn is a New York City metro market that has experienced sharp increases in both supply and demand and will continue to offer opportunities to UHNWI investors over the next 10 years. It remains a market of choice among creative types due to its burgeoning communities and proximity to Manhattan. New tax legislation that makes it easier to invest in property will have a major impact.
- On the Lower East Side, new infrastructure, amenities and restaurants are driving price growth in an area burgeoning with luxury developments by developers like Ian Schrager and architects Herzog & de Meuron. Proximity to Nolita, SoHo, and the East Village is helping market product to investors.
You ask, we answer. Here is the latest question from a current buyer: “Are low ball offers still ‘a thing’?”
We’ve gotten this question several times over the past few months: “are low ball offers still happening?” The question typically stems from buyers looking to find a bargain or process those listings that are clearly priced above market. Here are some general attributes of todays low-ball offers:
- Time on the market: if a property has been on the market for a year or more, several factors could be at play. Either the seller is not serious at all or the listing is so stale that stagnation has become a self-fulfilling property. The latter could happen either due to unrealistic seller pricing at the beginning of the listing cycle or one to two buyers that fell through towards the end of the process (due to building requirements or buyer profile complications). Either way, it can’t hurt low-balling in this scenario to get a true feel for the level where a deal can get done.
- Time in the market adjustments: if you’re a low-baller, you should readjust your expectations about how long it will take you to find a property. While the search lasts from 3 months to a year for your typical buyer, this time frame increases four fold, stretching out to the 4-year mark. Make sure you’re prepared for the long haul.
- The generational difference: we’re noticing a significant difference in expectations between generations, which is adding a layer of complexity to the “low ball offer” discussion. The younger generation is far more direct and bottom line oriented than older ones, meaning they don’t include any cushion in their offers, any negotiation wiggle room. This could feel very abrupt and brash for older sellers who are used to a back and forth.
- A delicate game: making offers well below the asking price requires lots of diplomacy, timing savvy and communication expertise. This is because, especially in a seller’s market like we’re in today, the risk of offending said seller to the point of not responding or ever taking the buyer seriously are quite high. A significant amount of due diligence should be done to comprehensively understand the seller context, the property history and existing circumstances. Further, the very way in which the offer is delivered, along with its structure and messaging, are critical.
The simple answer to the question is therefore “yes”, they still occur, but they are entirely based on the unique combination of the property, price, seller and buyer. Have a question for our team? Ask us at firstname.lastname@example.org!
We are changing our usual tune and exploring multiple culinary spots. This time we are diving into the greatest specialty stores in the city:
La Boite: this biscuit and spice niche creation is located at 724 11th Avenue, and was created by Chef Lior Lev Sercarz who has worked with some of the most sought after chefs in the world. From the website: “inspired by his passion for spices and the stories they tell, Lior began his own journey studying spices and their origins, eventually creating his own blends. Each of them is a reflection of a place, a moment, or cultural influence.” La Boite’s spices and treats are sold by notable retailers like Eataly and ABC Carpet & Home.
Murray’s Cheese: a deservedly long-time staple in the NYC cheese and dairy scene, Murray’s has proven time and time again that there’s no substitute for quality cheese, meats and specialty foods. Murray’s makes pairing cheese with complementary nibbles and wine easy, transforming its shoppers into culinary experts with little effort. It’s home to public and private classes, and boasts its own monthly clubs of cheese, meat and pair of the month. Did we mention that it ships all around the country?
The Meadow: the meadow is the brain child of a true salt aficionado, Mark Bitterman, boasting 100+ salts, 700+ chocolates and 280+ bitters. With its NYC store located at 523 Hudson, it “is a true neighborhood food shop, offering a daily dosage of chocolate and flower arrangements to many loyal West Village residents.” Mark has been featured in the NYT, The Splendid Table, ABC News and the History Channel, among others, for his extensive work on and with salt.
Economy Candy: unlike the above specialty stores, Economy Candy is a nuts and bolts, non-pretentious, simple, family-owned candy store that literally sells all that your candy-addicted sweet tooth could possibly want. The store is situated on the Lower East Side, and has been since 1937. Via barrels, boxes and bins, it continues to offer one of the best varieties for candy and nuts in all of NYC. It’s no wonder it has been referred to as “Willy Wonka’s dream”!
After much back and forth with the Landmarks Commission over its design, this West Village boutique condo is finally on its way to launching sales. Situated between Charles and West 10th Street on Seventh Avenue, the exterior will be defined by a red-brick façade peppered with irregularly spaced windows. The property will be home to five floor-through units of 2,500 sq.ft., and a duplex penthouse on floors six and seven. For more details on the beautiful development, please click here.