Brighter July: Interpreting the Effect of the Stars

It's July. Full Fledged Summer. Independence Day. Bastille Day. Rosé all day. We've had a heatwave, and we had a last-minute flurry of activity before the new mansion tax went into effect July 1st.

It's still a buyer's market, so I won't go there, again, but I will help you unpack some of the economic indicators presented during the month that just passed.

As for the Dog Days of Summer, this is a Grecian reference to the position of Sirius the Dog Star in the sky around this time of year, coinciding with heat-related illness, etc, attributing this discomfort to the mystical powers of the star. 

Whelp, this correlation was artificial. Much like the Q2 sales stats that came out this month. Read on for more.

Oh and for those of you who like the more esoteric bits of the Brighter Report, click here. And those that prefer syndicated links to less arcane/obscure media, click here.

While NYC is definitely a hot, sweaty mess in July, I personally was reminded of much of what makes the city great:

• Public Parks (sprinklers)
• Governor's Island(ferry, greenspace, al fresco dining)
• Ferries and Waterfront in general (although you probably won't ever catch me on a jetski or in a kayak)
• A Varied Selection of Relatively Accessible Beaches

Well, if you want to buy a true investment property, you could buy a starter home outside of NYC, in an area where salaries are not as high, there isn't a ton of "luxury" rental product, or there is a microeconomy of transient workers, students, or tourists.

Buying Multifamily in the Boroughs Is a Great Option

To stay under 1M you need to be in areas with limited Thai Restaurants, Beer Gardens, Curated Vintage/Consignment stores, and Artisanal Cafes.

A quick search revealed East New York, Brownsville, and Cypress Hills in BK.

But then again, new rental legislation passed in Albany could make potential profit thru y-o-y rent increases less tenable as maintenance costs steadily increase.

The New York Times

Disruptive Country Home

You could buy a house within an hour of the city, rent it on a yearly basis, or flex some design/marketing skill and lease it as a mercenary country house.A place where City Folk can buy some meat, bring some alcohol, and unwind a bit (with Netflix, Spotify, and hopefully a pool). This is my favorite.

I love the idea of renting the apartment I like and can afford in the city, and owning a "country home" that I have access to whenever I want, but realistically will only use a handful of times a year, that I can rent to similar NYCers when they get that thirst for nature, chlorinated pools, and "authentic" farm to table dining in a suburban setting.

You could buy pre-construction as a speculator (ideally in a cheaper market) with a limited supply of like kind, and sell upon completion.

Out-of-State Investment

There are also luxury properties in other cities like Miami and Austin, that are much more affordable, and may even allow you to AirBNB your unit or have it professionally managed and leased.*Setting up next Section.

"The 48-story tower, with roughly 600 units, will have about 400 condos and 200 Natiivo hotel units, according to a release. Cervera Real Estate was hired to handle sales and marketing of the condo units. The project, designed by Arquitectonica, is expected to open in the spring of 2022. Urban Robot is handling interior design.

Prices start at $300,000."

The Real Deal

"A new downtown Miami high-rise being unveiled Tuesday is promising buyers the chance to profit from their luxury units through Airbnb without running afoul of the condo board.

The first Natiivo buildings are planned for Miami and Austin through a partnership between Miami-based real estate company NGD Homesharing and Airbnb. They are slated to open in spring 2022.

“Basically, these are the first buildings built, designed, and licensed for home-sharing,” said Harvey Hernandez, CEO of NGD Homesharing."

Miami Herald

No Personal Income Tax, tropical weather, luxury housing stock at a discount. Easy Flight to NYC if you have to come back to take a meeting.

What more could you ask for?