Wednesday, March 12, 2008

Thanks to the US Dollar, NYC Real Estate is Hot

Isn't New York real estate always hot? Now our dwindling dollar makes it especially appealing to people who don't live in this country.

Many worry that the real estate market in the US will never recover. However, if foreign businesses and private parties are dumping millions of dollars into New York properties, I'm confident that we don't have much to worry about. I'm more concerned with inflation after the hundreds of billions of dollars being pumped into our economy than I am about property values.

I don't get it. We have a very weak dollar, and the Fed tries to help out by making it worth even less? I've never claimed to understand economics because it's the most boring subject on the face of the planet of the complex concepts involved. So maybe someone can explain this to me--in simple terms, like "the Fed thinks that this ridiculous move will save the economy from crumbling," except with more description than that.

Even though the exchange rate is favorable for these NY purchases, firms in other countries wouldn't be buying them if they thought that they'd be completely worthless in a few years. Unless they want a big US tax deduction, that is.

Let me help some of these businesses that are so desperate to own a little piece of Manhattan. Here is beautiful, albeit tiny, condo (or apartment, as you East Coasters call it) for sale. For a cool $1.295 mil, this 822 square footer can be the pride of any foreign firm. Oh, yes, why rent at an exorbitant rate when you can buy for even more?

Come on! I never want to hear about the outrageous property values in Southern California again--ever! This is what you get for the same price on Coronado Island, where the most overpriced properties in San Diego County are located. At least here, you live right next to an ocean that you can enter and enjoy for most of the year.

So maybe some of those foreign companies should come out this way to escape the hustle and bustle of New York and the financial district. Manhattan could be their home, while Southern California could serve as their vacation location.