Strategy: Investing in an ultra luxury building for above market appreciation
By Wei Min Tan
The objective of buying in ultra luxury buildings is usually to park funds and ride appreciation. Rental income is a low priority. The buyer client wants the best of Manhattan and feels the appreciation will exceed what he/she may get elsewhere.
There is a rental market for ultra luxury buildings but since rental price is so much higher, the renter pool is small.
Copyright Castle Avenue Team at Rutenberg
127 E 56 ST, 4TH FL, NEW YORK, NY 10022 USA212.email@example.com Wei Min Tan is a property broker focusing on Manhattan, New York luxury condominiums and foreign buyers. He is often interviewed by the media including CNN, The New York Times and The Wall Street Journal on the subject of foreign buyers of Manhattan property. View Wei Min's media appearances.
Wei Min can be reached at +1.212.380.6134, firstname.lastname@example.org.
Ultra luxury apartment in Soho
Castle Avenue Team
127 East 56 St, 4th fl, New York, NY 10022 email@example.com +1.212.380.6134 Property Blog
Manhattan, New York residential condominium specialist focusing on investors and international buyers
The one-bedroom at 40 Mercer above, at $3 million when purchased, featured 14 foot ceilings and super large windows in a building designed by star architect Jean Nouvel. At that time, a luxury one-bedroom was $1.2 million. Hence this ultra luxury one-bedroom was more than double the price of a (mere) luxury one-bedroom. The objective was to benefit from above market appreciation because of the building's star architect, Soho location and ultra luxury quality.
While appreciation usually exceeds market rate during an up market, ultra luxury prices suffer more during a down market.