Spending the Declining Dollar

Declining dollar makes you want to hollar? Well, there are two sides to every coin. Now may not be the most profitable time for Americans to travel abroad or buy flashy lofts in London, but a deadbeat dollar does make our goods competitive (read: cheap) in the international market-- the real estate market, in particular. It's an ideal time to sell your place to a flashy investor from the UK, Dubai, or even Canada. Yes, for the first time in 30 years, the US greenback has hit rock bottom to par with the Canadian loonie. Ouch.

For those investors who earn Great British Pounds, loonies, or some other currency that isn't the US dollar, you may be interested in investigating investment opportunities in other countries that use the US dollar or peg their currency to it*. Here's a list:

Panama, the Bahamas, the Cayman Islands, British Virgin Islands, Bermuda, Belize, Qatar, Kuwait, The United Arab Emirates, Syria, East Timor, Ecuador, El Salvador, Marshall Islands, Federated States of Micronesia, Palau and Panama.


*Obviously, there are a few other things to consider (politics, real estate laws, etc.), besides thriftiness.




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Green: It's As Good As Gold

Yesterday, Yahoo News reported that New York City ranks in the top 10 most sustainable cities in the country. The average New Yorker generates less 2/3 less carbon dioxide than those in other states and we're set to reduce our carbon footprint on an even greater scale with a series of 10 major goals and 127 initiatives put forth in Mayor Bloomberg's well-received "plaNYC 2030." Of course, one of the key parts to developing a green city is investing in green buildings. Everyone seems to be following the latest trend--hotels, condos, and retail buildings alike have embraced the challenge to be sustainable, or at least environmentally friendly.

Corporate giants such as IBM, Bank of America, Goldman Sachs, Toyota, and JP Morgan Chase are leading the way by leasing green office space throughout the country. Developers are doing their part by grabbing up partially empty office spaces and giving them an eco face lift. Even the Whitehall Ferry Terminal is now equipped with solar electric glass panels that shell out 52,000 kWh of clean power annually.

This is obviously great for the environment, but it also translates to green in your wallet (thus the enthusiasm from developers and landlords):

Not only do green buildings save an average of 10% in utility costs every year, the property value hikes up by an average of 7.5% and rents run around 3% higher than non-green buildings. While this may not be great news for buyers and renters, it is certainly worthwhile for real estate investors.

For those that invest in the stock market, the Spectra Green Fund has outperformed the Russell 3000 for three years, largely as a result of the fund's investments in clean-energy stocks and green Real Estate Investment Trusts. Stocks in companies that manufacture the green devices that builders rely upon have also been significantly rewarded. The stock price for Johnson Controls, for example, has risen around 40% within the last year alone.

This "green gusto" is not likely to slow down. Millions of dollars of energy-saving and energy-producing plans have already been approved by the city. Green is obviously the new gold standard (pardon the terrible, colorful pun).

Real Estate Lingo

While real estate is expensive, so is advertising space. Here's a list of common abbreviations and lingo that you'll com across if you're searching in the papers:

dk -- deck
expansion pot'l -- Expansion potential means that there's extra space on the lot, or there's the possibility of adding a room/upper level (subject to local zoning restrictions).
fab pentrm -- fabulous pent room
FDR -- formal dining room (not to be confused with the former president, or the highway in New York).
assum. fin. -- assumable financing
fixture -- anything of value that is permanently attached to or a part of real property. (Real estate is legally called "real property," while movables are called "personal property.") Examples of fixtures include installed wall-to-wall carpeting, light fixtures, window coverings, landscaping and so on. Fixtures are a frequent subject of buyer and seller disputes. When in doubt, get it in writing.
frplc, fplc, FP -- fireplace
gar -- garage (garden is usually abbreviated as "gard.")
grmet kit -- gourmet kitchen
HDW, HWF, Hdwd -- hardwood floors
hi ceils -- high ceilings
in-law potential -- Don't worry, it's not what it sounds like. This refers to the potential for a separate apartment (subject to local zoning restrictions)- not necessarily meant for your spouse's parent.

Here are a few words that should send up red flags:

cosy: This means cramped. If you suffer from claustrophobia, ads with the terms "intimate"
or "efficient" are also not for you. Those with big furniture who do not want to sell it or
cram it into your cosy space like a game of Tetris are also advised against answering ads
with such lingo.
outdoor space: Don't get your hopes up before confirming that the outdoor space does not
actually double as a fire escape.
original retro: A nice way of saying that the shag carpet hasn't been changed since the 70's.

New York: It's Better Than Chicago

So, New Yorkers, you thought you lived in the best city in the world? Filled with art, culture, and opportunities? According to CNN's Money.com, not many people agree with us. We have even been shoved behind freezing, windy, landlocked Chicago. Not surprisingly, Second City came in second place in the polls, but this time, it's not playing second fiddle to New York, arguably the best city in the world. Surprise, New York: we're in 5th place!

Besides the Windy City, Dallas, Houston, and LA. also come before us. Granted, Texas and California do have better weather, but just wait 'til global warming kicks in-- we'll be right back up there.

Enough ranting, let's get down to the facts. The ratings are based on the following categories:

1. Affordable Housing: Granted, in terms of real estate, New York is one of the most expensive cities in the United States. But when the America's housing bubble (or festering blister, to be more accurate) bursts, New York is a-ok. The average price of apartments went up 8% and luxury apartments averaged an increase of 20% while the average for the rest of the nation declined by 17%. So yes, New York homes are more expensive, but buyers are also be more likely to make a bundle. So while the rest of America is cheap, this certainly doesn't pay off in the long run.

2. Plentiful Cultural Options: We've got this one trumped. From the Mermaid Parade to the Festival of the Animals, to those crazy Russian Dungeons...we've got every every cultural option there is. Last week I went to a pickle festival, and today I'm heading to the San Gennaro Festival in Little Italy.

3. Job Growth: Job opportunities and growth in New York are abundant and incomparable. When I was trying to be a hot-shot Financial Advisor on Wall Street, there was a former janitor at the desk next to me-- and he was making a killing.

4. Plentiful Leisure Activities: Relax, New York knows leisure. Whether you want to picnic in Central Park, take a horse and carriage ride, bask on one of our many beaches, or go to an expensive spa that's worth every penny, there are plenty of activities for the stressed-out, the lazy, and the hedonists who need leisure.

5. Sunny Weather: As I mentioned earlier, we can't compete with Texas or California on this one yet, but just you wait. Global warming is on our side.

6. Short Commute Time: Unless you live on Coney Island, the commutes really aren't bad.

7. Good Health Care Access: Note: This does NOT say affordable health care access, just good healthcare access. Is someone being pedantic with their ratings? Maybe Houston, Dallas, LA, and Chicago beat us on this one-- because they have good health care access-- but we have the best. And if that isn't enough, studies show that New Yorkers live longer than anyone else in the country by an average of 9 months (just enough time to make a baby before you die!). And although the life expectancy of all Americans is on the rise, the rate at which this number is increasing is highest among New Yorkers. There's a lot to live for in this city.


So, who rated New York as the Fifth best place to live instead of the first? I'm guessing that whomever is in charge of the CNN Money website made a type-oh. Five of them, to be precise.

Novo 64 Rolls Out The Red Carpet In Forest Hills

Good news: the inevitable spilling over of Manhattan luxury and design is FINALLY hitting Queens. Last week The Horizon Group literally rolled out the red carpet for the Grand Opening of their sales office for Novo 64, the new luxury condominiums that will be ready by next summer. The sales office is at 70-39 Austin Street and is offering pre-construction prices (highly advised). Here's taste of some of the amenities that will be on tap: a theatre, sauna, Zen garden...

More details are on the website: http://www.novo64.com/

Happy condo shopping.