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Nouriel Roubini Buys $5.5M Home In New York

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Mr Roubini, who predicted the global financial crisis, took out a $2.99m mortgage to buy the Manhattan property, according to New York City Department of Finance records.

The "sun-blasted" apartment atop a former steel warehouse is a 3,700 sq ft triplex penthouse, according to listings website StreetEasy.com.

“He is making a statement, definitely, in the rent-versus- buy argument,” Sofia Song, vice-president of research for StreetEasy, said. “For his own personal situation, it makes sense to buy. It might prompt others to potentially start looking.”

http://www.telegraph.co.uk/finance/newsbysector/constructionandproperty/8210845/Nouriel-Roubini-buys-5.5m-home-in-New-York.html

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So he's expecting his revenue stream to continue then?

I read it that he has made a pile of cash and that putting the money into a top appartment in NY is preferable for several reasons - lack of return on cash in banks, less risk than speculating in shares, no risk of banks going bust and losing everything, etc - than putting the cahs anywhere else.

If everything goes to pieces he still has his prime real estate appartment which will, because it is in NY, recover from any drops sooner than most other property.

Maybe something for STRers to think about?

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This Reuters blog story links to this page as Roubini's new place.

It hardly seems like there has been any crash in value in the area he's bought in. It would serve him right if things now began to seriously crash there in the coming months. Serve him right for bottling it, losing his nerve, and getting it wrong.

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I read it that he has made a pile of cash and that putting the money into a top appartment in NY is preferable for several reasons - lack of return on cash in banks, less risk than speculating in shares, no risk of banks going bust and losing everything, etc - than putting the cahs anywhere else.

If everything goes to pieces he still has his prime real estate appartment which will, because it is in NY, recover from any drops sooner than most other property.

Maybe something for STRers to think about?

Does he seriously thinks that if many banks go bust his apartment will still be 'worth' $5.5m?

Think he also talked about the crash and yet had all his most of portfolio in shares in 07/08.

If all his CNBC apperance fees disappear, he is going to have some fun paying down the $2.99m mortage.

By the way, does US public records state the mortgage amount of the borrowers? Interesting.

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So he's expecting his revenue stream to continue then?

And inflation.

Edit:

He's changed his mind...it's inflation.

+ 1

Edit 2:

"Mr Roubini took out an adjustable-rate mortgage that has a fixed rate of 3.625pc for five years, according to city property records. The rate on the loan, which runs through 2041, will change in January 2016 and once each year after that."

That is odd. IIRC most inflation periods are longer than 5 years. No?

Anybody has any info about that? (It's too early to Google it now. Not enough tea yet.)

Edited by Tired of Waiting

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Says one thing does another. Another shyster just making millions talking doom and gloom crap.

seems a bit harsh, hes just changed his view on asset inflation/deflation and is protecting himself based on that view, if he was saying one thing and doing another hed have bought a place a couple of years ago

and judging by the quality of his calls the last 18 months which have been pretty dire and consistently bearish, it is noticeable that you never see Realist Bear posting on here at the same time Roubini is on tv

Edited by Tamara De Lempicka

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He's changed his mind...it's inflation.

Why only a 5 year fixed rate mortgage then? I thought they could do much longer terms there?

Mr Roubini took out an adjustable-rate mortgage that has a fixed rate of 3.625pc for five years, according to city property records. The rate on the loan, which runs through 2041, will change in January 2016 and once each year after that.

http://www.telegraph.co.uk/finance/newsbysector/constructionandproperty/8210845/Nouriel-Roubini-buys-5.5m-home-in-New-York.html

Perhaps he is holding a lot of cash in other currencies so the deposit looked cheap in US dollars? Then if he has income in foreign currencies or Oz dollars earning 7% the mortgage looks cheap as well?

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seems a bit harsh, hes just changed his view on asset inflation/deflation and is protecting himself based on that view, if he was saying one thing and doing another hed have bought a place a couple of years ago

I agree. And I think he is making a political-economy bet. He thinks the FED/US gov. will be forced to chose inflation, cause:

“If house prices are going to fall another 5pc to 10pc, another 8m households are going to be in negative equity,” the economist said in November. “We are going to have another nasty crisis. That’s going to happen unless we do something about it. Forget about subprime, look at prime.”

Remember that in America many (most?) mortgages are 30 years fixed! Imagine what happens to these "hard working families" if inflation goes high. They win a lottery - a house.

Edited by Tired of Waiting

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I agree. And I think he is making a political-economy bet. He thinks the FED/US gov. will be forced to chose inflation, cause:

Remember that in America many (most?) mortgages are 30 years fixed! Imagine what happens to these "hard working families" if inflation goes high. They win a lottery - a house.

But he hasn't done a 30 year fix and if he was worried about inflation wouldn't he be worried about interest rates rising?

Mr Roubini took out an adjustable-rate mortgage that has a fixed rate of 3.625pc for five years, according to city property records. The rate on the loan, which runs through 2041, will change in January 2016 and once each year after that.

http://www.telegraph.co.uk/finance/newsbysector/constructionandproperty/8210845/Nouriel-Roubini-buys-5.5m-home-in-New-York.html

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seems a bit harsh, hes just changed his view on asset inflation/deflation and is protecting himself based on that view, if he was saying one thing and doing another hed have bought a place a couple of years ago and judging by the quality of his calls the last 18 months which have been pretty dire and consistently bearish, it is noticeable that you never see Realist Bear posting on here at the same time Roubini is on tv

Perhaps he had.

During an interview in June 2009, he was asked about his personal lifestyle expenses and other investments. He said, "I regularly save about 30% of my income. Apart from my mortgage, I don’t have any other debts. The credit crunch hasn’t affected me much. . . . I’ve always lived within my means and, luckily, have never been out of work. I would say I’m a frugal person — I don’t have very expensive tastes. . . . You don’t need to spend a lot to enjoy things."[7]

Asked whether he invests in stocks, he replied, "Not as much these days. I used to have a lot in equities — about 75% — but over the past three years, I’ve had about 95% in cash and 5% in equities. You’re not getting much from savings these days but earning 0% is better than losing 50%. . . . I don’t believe in picking individual stocks or assets. . . . Never invest your money as though you are gambling at the casino. Buying and selling individual stocks is a waste of time

http://en.wikipedia.org/wiki/Roubini

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But he hasn't done a 30 year fix and if he was worried about inflation wouldn't he be worried about interest rates rising?

Mr Roubini took out an adjustable-rate mortgage that has a fixed rate of 3.625pc for five years, according to city property records. The rate on the loan, which runs through 2041, will change in January 2016 and once each year after that.

http://www.telegraph.co.uk/finance/newsbysector/constructionandproperty/8210845/Nouriel-Roubini-buys-5.5m-home-in-New-York.html

I know. I agree.

I wrote a very similar thing above, in an edit to my post #14: http://www.housepricecrash.co.uk/forum/index.php?showtopic=156366&view=findpost&p=2826885 And I saw your post #17 above. We were writing the same thing at the same time.

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(...)

a fixed rate of 3.625pc for five years,

(...)

Perhaps the 10 years fixed were much more expensive? And/or he is expecting a sharp but short lived inflation "spike"? Just a few years?

Still, it is strange. It would have been much safer to go for a 10 years. I don't get it.

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Says one thing does another. Another shyster just making millions talking doom and gloom crap.

He says absoultely nothing that people on here don't say. Plus nobody here gets a fee. Plus I can understand people on here.

Edited by tomwatkins

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That is odd. IIRC most inflation periods are longer than 5 years. No?

Anybody has any info about that? (It's too early to Google it now. Not enough tea yet.)

Wiemar's hyperinflation was over within a year or so I believe, in 1923, however, it took them about 5 years of more benign inflation before the hyperinflation suddenly kicked in.

He seems to be cutting it a bit close if betting on inflation is his game , then again plenty of economists haven't got a clue.

Then again we don't know what other investments he has. He may have a tidy pot of gold and silver that he'll be using the profits from to pay off the balance before the 5 years is up.

Edited by General Congreve

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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