An interesting report from Las Vegas Review Journal stating that the US Real Estate market is still suffering, harming construction jobs all over the country. However, certain states lile NV and AZ report price growth: http://www.reviewjournal.com/business/business-press/real-estate-housing-starts-down-construction-jobs-further-down
Archive for category: Real Estate Trends
Smoking Banned In NYC Apartments
Related Companies, which bills themselves as the premier global residence company, banned smoking in its rental buildings. What started as a pilot program in 2009 is now live in 40,000 rental properties that Related manages and owns.
What does the ban mean? New tenants and those with expiring leases must sign a contract stating that they won’t smoke anywhere in the building – from private balconies to the actual apartments. The result if tenants to – they face eviction.
Related Companies has a number of properties in New York City such as The Lyric, One Carnegie Hill, The Tate and MiMia.
What do you think of the ban? Are they at the forefront of a trend?Stay tuned for more NYC real estate news from Ron Hershco
Can you imagine being told what shoes to wear in your own building? What about having your umbrella and rain boots taken away when you leave them outside your door to dry for a quick moment? How about being told you can have a dog, just not the breed of dog you currently own? These are just a few examples of harsh co-op board rules that exist in NYC.
Ron Hershco recommends getting a list of the co-op board rules for living BEFORE putting in an application. There most likely won’t be a rule to make you not buy the apartment of your dreams, but if you’re early in your process, a known list of rules could help you narrow down your options.
A recent article in The New York Times gave a more detailed background on where these rules came from:
“The average co-op or condominium has two dozen house rules. “Typically, they’re quality-of-life rules meant to benefit everyone in the closed community,” said Toni Hanson, a vice president and senior managing director of Douglas Elliman.
While there’s good sense behind many of these rules — don’t hang or shake things out the window; lay off the stereo before or after a certain hour — certain strictures can charitably be described as quirky, not to say capricious or overreaching. Your home is your castle? Think again.
It’s all, of course, in the interest of helping a building full of strong-minded New Yorkers coexist in (relative) harmony. Co-op boards have long issued directives about deportment and decorum, and condo boards are increasingly following suit. For the most part, they are well within their rights. Residents can either get with the program or get behind a co-op coup to remove the big-brother board members in their midst.
Generally, thanks to what’s known as the business judgment rule, boards have broad latitude in making, amending and rescinding house rules — the good, the bad and the decidedly wiggy. If board members think a situation needs to be addressed, they can address away without input from residents.”
Have you ever experienced any of these tough co-op rules? Do you think they are fair or unjust? What rules would you make sure to enforce?
Global rental website Airbnb, which connects short-term renters with budget priced room rentals, has found themselves on the wrong side of the law in NYC. Residents are restricted by NYC law from renting out rooms or apartments for fewer than 30 days, unless they are also living in the home as the same time as the visitor. This is contradicts the basic business plan of Airbnb.
Earlier this month, Ron Hershco commented on the Department of Buildings cracking down on real estate agents and brokers. Now it seems they are heavily pursuing non-licensed renters and average home owners as well.
According to Time Magazine it is not the first time Airbnb has been in trouble:
“No stranger to similar controversies in other cities, Airbnb released a statement saying it will continue to fight the legal battle. While its terms of service say that users are fully liable for complying with local laws, the company maintains that New York City’s laws are not aimed at individual tenants, but instead at preventing landlords from buying residential buildings and operating them as hotels, reports CNN Money. The San Francisco-based company, which currently operates in over 33,000 cities in 192 countries, has raised the ire of authorities elsewhere — most recently in Amsterdam, where the main issue is that local laws, such as paying tourist taxes, are circumvented with Airbnb transactions.
Since New York City’s mayor’s office of special enforcement began carefully scrutinizing short-term rental issues in 2006, it has received more than 3,000 complaints, conducted nearly 2,000 inspections and issued nearly 6,000 notices of violation, according to the New York Times. In January, the travel news site Skift estimated that approximately half of Airbnb’s listings in New York City “are likely illegal.”
Have you ever rented to or from someone that could violate this new law? Do you know anyone who has?
At 1,004 feet the tallest apartment house in New York, will open later this year at 157 West 57th Street. It is going to be the highest and most expensive condominiums in the history of New York. However, what a few folks might not know if that just across the street once housed the long-gone Rembrandt. The Rembrandt was built in 1881, was only six stories high and was New York’s first even co-op.
Hard to believe how far we’ve come in the real estate marketing over the recent years. Ron Hershco has been in the business since 1992, starting his career at a small agency and working his way up through the ranks. In that relatively short time period, Ron has seen prices rise and fall, new buildings sprung up and the evolution of the Manhattan real estate market.
According to a recent New York Times article about the Rembrandt:
The internal arrangements are hard to reconstruct, but the building had at least one elevator and duplex units with as many as 12 rooms. Various early accounts mention sales of $4,000 to $5,000, and maintenance as low as $50 per month.
It’s going to be interesting to see where the Manhattan real estate market is headed in the future. The market can be touch and go day by day, but Ron Hershco knows a thing of two about real estate. Always looking to the future, Ron has his focus on urban development, affordable housing and high-rise condominium complexes.
It’s been widely known that rents in Manhattan have been steadily increasing, but there has been a buzz in the industry that the rental market is finally taking a rest for a while.
Rents have been rising 5% consistently year-over-year and then there was a dip in prices between the third and fourth quarters of 2012.
Brokers in the market agree too and they are starting to see stabilization of rents. However, some noted that the market is still strong and argued that the recent change was nothing more than a seasonal downshift. And others say that some renters have decided not to be paying increased prices.
Jonathan Miller, a real estate analyst said that the difference in median rent between Manhattan and Brooklyn has “compressed” slightly last year. There’s a number of Manhattanites who are turning to the outer borough for more affordable rents. And Miller understands that shift, “Anytime you have out-of-control growth that doesn’t self-regulate, it always ends badly,” he says.
Ron Hershco, a property developer in New York believes that the market needs to stabilize itself for a while. Renters don’t want to be always pressured for that 5% increase each year.
Another tactic some renters are doing is that they may attempt to buy a property versus renting, but their lack of qualifying for a loan ends up being a barrier to purchase. Douglas Wagner of Bond New York Properties noted that renters who were fleeing the market in the fourth quarter of 2012 are now returning to our rental offices to sign another lease for a property.
The Manhattan rental market needs a break for a moment, but there’s no doubt that it will pick up and that rents will increase again.
Real estate economists and industry reports said their predictions depend on next year’s accuracy for mainstream forecast of economic growth and assume that the economy won’t experience an earthquake from falling off the fiscal cliff. Emerging trends show a sharp turnaround for the upcoming year. Analysts have officially released important trends and issues of 2013 that you need to know affecting U.S. real estate markets.
Ron Herscho is a distinguished real estate developer, a pioneer in the New York real estate market. He developed the Meridian a luxury residence overlooking the Atlantic Ocean and 306 Gold Street a 40 story glass building that overlooks downtown Brooklyn’s skyline. Ron focuses on urban development, affordable housing and high-rise condominiums in the New York area. His mission goes hand in hand with 2013 real estate trends by providing high quality affordable living and to make buying a home a simple experience.
The Emerging Trends in Real Estate report has been a reliable forecast for real estate developers and investors across the nation. The rising trends include:
• Focus on maturing infill locations, such as properties near mass transit stations and commercial areas near hip residential communities.
• Construct new-wave office and build to core in 24-hour markets. Build green, tenants will pay higher rent for buildings with efficient design layouts and lower operating costs.
• Develop industrial facilities in major distribution centers near ports and airports.
• Be cautious when investing in secondary and tertiary cities. Partner with local operators who understand the local tenant trends and issues. The leading secondary markets comprise Austin, Charlotte, Nashville and San Jose.
• Steer clear of apartment development in low-barrier-to-entry markets.
• Investing in single-family housing funds, will add to rental supply and compete against apartments.
• Repurpose the excess of out-of-date properties. Facilities such as vacant centers, old office parks and low-ceilinged warehouses are prim candidates for renovation or redevelopment.
Ron Hershco agrees that real estate firms boost profitability at the margins by keeping lean; anticipation of 2013 will be a reasonably good year for bottom lines. Stronger capitalized firms should continue to gain market share, but the overall size of the Industry will not change.