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NYC Real Estate prices continue to climb.


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From someone who lives there;  Louis Rossman, famous on the Internet for his battles with Apple .

(He also does a lot of NYC commentary, his bike ride video going through the city are usually interesting as he opines on local issues and life in general.)

 

 

He reckons a lot of it is due to money laundering ... dodgy people from around the world just want to park their dirty cash in commercial property in NYC.

 

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9 minutes ago, Sour Mash said:

From someone who lives there;  Louis Rossman, famous on the Internet for his battles with Apple .

(He also does a lot of NYC commentary, his bike ride video going through the city are usually interesting as he opines on local issues and life in general.)

 

 

He reckons a lot of it is due to money laundering ... dodgy people from around the world just want to park their dirty cash in commercial property in NYC.

 

Id be surprised. 

If i had money to launder i would do it london every time over new york. 

Over there they send white collar criminals to jail for a long time, over here we just ban them from being directors for 5 years. 

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  • 2 weeks later...

Louis reckons he's discovered why so many NYC landlords would rather leave their properties unrented, or give more than a year's free rent,  than accept lower rental offers from tenants.

Spoiler:  It's Mortgage Backed Securities  , which he didn't previously know about.

https://youtu.be/NdfmMB1E_qk

Reddit post that he references:

 

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2 hours ago, 24gray24 said:

He should try simple optimism as an explanation instead. They hope it will all go back to normal next year, so it's worth losing a bit now on a 25 year term for a much better rate next year. 

 

He's been a bit obsessed with NYC real estate for a while - well before the Coronavirus hit.  He runs an Apple repair business and was looking around for new premises as well as thinking of buying a house for a good few years. 

One common thing he noticed when looking for premises for his shop was that almost no commercial landlords would accept a cut in rent but they would offer inducements like 'x months free rent' instead.  Often 1 year + 'free' in a multi-year lease.

He was tracking places that wouldn't negotiate on rent and in many cases they had been empty for years.  He's also noticed places that don't actually seem to want tenants, which he suspects are straight up property money laundering.

If MBSes really are the reason why many landlords won't (can't)  cut rent, then its yet more real world fallout from the toxic legacy of 'New Financial Instruments' that wrecked the financial system back in 2007/8.

 

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  • 418 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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