OPINION: Don't Buy Real Estate In New York City
Updated: Oct 16, 2020
We might witness the crash of all crashes. New York City is currently a ghost town according to people still living there, most residents have left for more open spaces rather than cramped city-living. This has caused apartment buildings in the notoriously high-priced NYC fall by more than 40% in some areas. The city is desperate to reopen outdoor dining and retail shops, but any close interaction among groups of people is bound to spur a COVID outbreak. Penthouses and condo prices are beginning to fall as homeowners that abandoned months ago begin to default on their mortgage payments. A tidal wave could be coming, but the good news is NYC will likely sink anyway.
The rising seawaters show no indications of slowing due to lack of governmental action on the issue. New York City could very well sink alongside Venice in the coming years. The life post-COVID might be limited if the rising waters do not relinquish. Individuals who purchase real estate in New York City imagining the post-COVID life to be the sequel to the Roaring 20s could be making a grave mistake if the impact of climate change make the islands uninhabitable.
Real estate in general may not be a great investment in the long run. It's reputation as a consistently safe asset is given far too much credit, and if the underlying circumstances regarding the value of real estate change then real estate values will change.
The idea that real estate, or any market, always goes up is absurd. What an outrageous assumption. Why would values of anything always go up? There is always a reason for prices to go up and down, and maybe trends have continued for centuries that caused housing prices to constantly increase, but they certainly aren't definite. Assuming the value of something is the worst thing an investor can do. Always look under the hood before you buy the car.