Anyone looking to buy a home in New York City’s tonier neighborhoods knows that sticker shock is a definite possibility!
Asking prices in Manhattan have been known to top the $100MM mark, driven in no small part by foreign buyers looking for a currency storehouse.
But these apartments, if strictly for investment, can be left empty with little impact on future value as the ‘curb appeal’ will likely not be that large a concern. And if necessary, when it’s put on the market for sale, it can always be staged.
Now let’s consider these speculatively constructed estates in Bel Air with huge price tags along with huge ongoing maintenance costs. The question that comes to mind (at least this mind) is whether, in the game of real estate musical chairs, the music is about to stop with some of these developers left standing with their hands in their pockets?
For anyone who was involved pre-2008 in lending, real estate, CMBS or any other sector of the US economy, I think that you know what I’m talking about!
So while we will have to wait and see whether we are at a new speculative top in the market (real estate, Wall Street, et al.), this is a look at what $100MM can get you in and around Los Angeles.
And always remember, if you have to ask the monthly cost of landscaping and pool maintenance at one of these behemoths, you probably can’t afford it!
Michael Haltman is President of Hallmark Abstract Service in New York.Google+