When you have a secret fishing spot, you don’t tell other people about it. It’s the unwritten rule. The same applies with investing. Millionaires have been keeping a secret source of wealth under their hats for years. Somehow word got out. The billionaires caught wind, and it was only a matter of time before they wanted a piece of the action too. It goes without saying that when billionaires move in, that a secret is a really good one.
Manhattan luxury real estate has been a gold mine for the millionaires who have bought in and won big. For years, they watched $5 million homes turn into $20 million palaces, all while enjoying the world’s most amazing lifestyle. There is nothing like making millions every year just by listening to ice rattle in a scotch glass while watching the sunset over Central Park.
Now, billionaires are upping the ante, and it’s boosting values across the board. According to a report by Stribling & Associates, the Manhattan real estate market is no longer focused on the $5 million price range. The greatest increase is in homes priced between $5 million and $20 million.
Investors see the New York market as a safe haven to store capital, which is perfect for foreign buyers from Europe, South America and Asia. The increase of sales has increased the feeling of safety with luxury real estate in Manhattan.
At the peak of the housing boom, the $40 million home was the new $20 million home. After the crash, interpretations flip-flopped, with some claiming $20 million was the new $40 million. Now, with billionaires from Russia, China and Canada entering the market, the $80 million home is the new $20 million home. With the addition of One 57 and the soon to be released 432 Park Avenue, there appears to be no signs of slowing down.
In the last year, the highest priced condo sold for $88 million in a market that currently has a dozen Manhattan homes priced above $50 million. The Penthouse at One 57 has been reported as selling for over $90 million. Accordingly, the super rich have found one of the most desirable cities to invest in. Their demand for suitably extravagant real estate is boosting prices while number of available properties is quite limited.
The secret may be out, but to know what billionaires do is never a bad thing. While they bid for the limited space of the super towers, there are still plenty of $5 million to $20 million fish in the sea.
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