There’s currently a real estate boom going on in New York City. The world’s wealthiest multi-millionaire and billionaire investors are buying up New York’s most luxurious real estate as fast as developers can build to meet the demand. The apartments that these foreign investors are buying are so high end that they are among the most sought-after and expensive pieces of real estate in the world and are called stash pads NYC.
Do Stash Pads NYC Only Offer a Negative?
Over the last 2-3 years, a lot has been written about these stash pads NYC. Most of these articles have been very negative concerning the results and consequences of so much ultra-high end real estate development and the escalating prices of apartments brought about by such prime real estate.
Wealthy native New Yorkers are even finding it hard to afford, or obtain, the apartments of their choice. Even if they qualify, but need a mortgage, their choices are limited because so many foreign investors are putting down cash.
Foreign investors in our real estate are looking at it as a way to park their money and get a very good return on their investment. Often times a real estate investment in NYC will also fly under the radar so it becomes a very attractive shelter for their wealth, something that Swiss bank accounts used to be prior to new regulations.
The negatives are multiple to be sure. More and more native New Yorkers are being driven out of the city they love because of these foreign investors who can afford to pay exorbitant prices for these stash pads NYC.
The Positive Flip Side of Stash Pad Demand
Preston Pesek, creator of SPACIOUS™, stated:
“I suggest that who actually owns the real estate makes only a marginal difference. The ownership exists on paper, but you can’t take the dirt and the buildings out of the city. They are the city, and assuming the owners are interested in preserving the value of their assets, they provide enormous intrinsic value to the city’s inhabitants, regardless of the contractual ownership or whatever form of monetization may occur around foreign or domestic ownership…. Foreign buyers of opulent homes (as opposed to commercial property) can certainly affect the affordability of housing for local residents, but this is a double edged sword, as such inflation increases the value of incumbent local owners as well. Furthermore, as long as those owners are paying taxes, the locals who live wherever there are absentee tax payers may benefit from local public services that someone else helps pay for. This type of gentrification will always be controversial, but as long as the locals take steps to implement intelligent tax policy around foreign or absentee property ownership, it can be a positive trend for everyone.”
I couldn’t have said it better myself! There really is a positive side to stash pads NYC. As the city ages, the demands for high end apartments by foreign investors is allowing real estate developers to improve the city’s infrastructures, which benefits everyone. More services are required by wealthy investors who know they need to pay adequately for those services. When the economy benefits, everyone benefits – rich and poor alike. That spells win, win!
Written by Anne Schabert for MetropolisApts.com