Weekly round up - Real Estate
New York Residential Market
Innovative landlords reacting to falling prices
Prices in New York's luxury residential market have been declining over the past 6 months. This is a result of over-building in the city, the recently introduced "Mansion Tax" and a decline in overseas buyers.
Landlords are having to look at new ways of getting their properties sold. One of those landlords is Magnum Real Estate. As opposed to offering straight sales to its clients, they now offer rental apartments with the option to buy. If the client purchases it within a year, they get reimbursed 50% of the rent paid, 75% reimbursed if they purchase within 6 months.
On the one hand, this works out for the landlord as they receive rental income for what would otherwise be an empty unit, on the other hand, this means selling the unit at a lower price if the renter does not end up buying it.
UK Residential Market Forecasts
Savills Market Report Summary
In the years ahead, Savills expects the North West of England to see the strongest price growth. This is due to the strength of the regional economy as well as the capacity for higher loan to income ratios in the region.
Help to Buy is scheduled to end by the start of 2023, which will likely have an impact on demand from first-time buyers.
in Q3 2019, prime central London prices were 20.4% below their 2014 peak. For US dollar purchases, this is 42%. Since the report was published (14.11.'19) GBP has strengthened vs USD, with house prices expected to bounce back following a Conservative victory in the election.
start-up of the week
Through technology, the company makes searching and selling a property intelligent as well as user-friendly. The firm is revolutionizing how agents and clients transact in the sale of residential property.
The firm was set up in 2012 by Ori Allon and Robert Reffkin. The firm currently operates in the US and has so far received $1.5b in investment with an estimated valuation of $6b.