Join the conversations with us at London Property, where we use our experience, expertise, and deep-rooted relationships to connect super-prime property owners and tenants with handpicked experts. You can apply for our exclusive membership, or to be on our curated experts directory here: https://londonproperty.co.uk/en/ .
New York, New York!
This week we welcome back Lee to discuss with Farnaz how the market in New York is doing post pandemic and what Lee considers as the reason that New York bounced back so well.
They discuss the new offices that the real estate company Lee works with has opened in Singapore, and their new International Wine Division that reflects how the real estate market is rapidly changing.
It’s an interesting opinion on how buyers and sellers approach owning property in New York and the pros and cons of renting in that market, in comparison to the London market.
Whether you already own a property in New York, or are considering purchasing one, this interview provides you with some great insights into how the New York property market works and what you need to consider when thinking about buying or renting property there.
As always, we love to hear your feedback and comments. Come and join the conversation with us on social media or via email at firstname.lastname@example.org.
Interviewer - Farnaz Fazaipour | Property Investment & Ownership
London Property home of super prime, where you can find informative educational and entertaining content, covering all aspects of property.
Farnaz Fazaipour 0:11
Hello, and welcome to London Property home of super prime. I'm your host Farnaz Fazaipour. And today we're welcoming Lee Summers back to the show from New York. Welcome back to the show.
Lee Summers 0:21
Thank you very much.
Farnaz Fazaipour 0:22
Just to put things in context, let's first start by we're going to talk about the New York market. But before we get there, can we have a bit of an introduction about your journey to date?
Lee Summers 0:32
Yes. Well, you know, I run I, as you say, I'm based in New York, and I sell real estate in New York City, to people from all all over the world, I run a 17 person team in different countries in Europe and in Asia. In fact, we just opened up the Singapore ofice of Summers Global Team. And we have also just opened up a new wine division, international vineyards of which we have vineyards, Portugal, Spain, Italy. And so we seem to be expanding in that direction. Because the world of real estate is changing so much. And, and this is what, and this is what I do.
Farnaz Fazaipour 1:23
That is very good starting point. Because sitting from New York dealing with people all over the world, you're having conversations with high net worth individuals that have real estate interests everywhere. So before we ask you about how those conversations you're having relate to London, let's start by talking about New York, and what's actually happening in the real estate market in New York.
Lee Summers 1:47
The real estate market in New York, took a bit of a hammering, during the pandemic, and there was an exodus to Florida, Miami for various reasons. The exodus stopped the pandemic ended in New York. And as always, New York came back, it came back with a bang. The thing about New York that we have to I really like to say is that when the market goes up and down in New York, New York always still comes out number one in the world for the reason being that the people are transferred there. People want to live there because of various reasons, but also the quality of the housing. We probably have the best condos and apartments and townhouses in the world for sale. The the condos that they are building, the condos that have been built also spectacular because I don't know the reason for it, I think because maybe Americans are very demanding in what they expect what they want. But as a matter of course, the condos have pools and concierge, they'll put food in your fridge and this is not one or two in the $20 million category this is all this is townhouses that are done. When people in New York buy apartments, and they buy homes, townhouses, they redo them, they fix them, they calculate how much it is to buy and then they add in their mind millions upon that to fix to live in. In this world where everything works, kitchens are never more than 10 years old. In the lower price range, let's do the lower price range. The lower price range will take, the let's say in New York a lower price range would be in the $1 million category - $2 million category, although 2 million is not a low price, but it is in the category for New York. You get really beautiful views you get brand new updated kitchens. When you rent things in New York the things are or have to be delivered in wonderful condition with this is this is required. So that's New York State. In New York State people want to be, what you get is really good.
Farnaz Fazaipour 4:30
Well of course we want to compete with that top position, in here in London with New York. But after the pandemic was the demand coming from foreigners? Was the demand coming from people coming in for jobs?
Lee Summers 4:42
Everybody is saying I love New York, I have to go back or I have to get a flat or I want to rent it out. When you are renting a flat in New York, when you are the owner and you rent out your flat in New York. You because New York has is more, the property taxes are higher than in London, in London, you pay very little for your property tax in New York, or real estate taxes are fairly high. So the what you might make on buying something in New York and renting it out, is may not be as much money as you would get by doing it in London, but you make on the back end you make when you sell it, and appreciation that people are going exactly exactly because you're not getting more than 2%. Also on your on your dollar in New York for renting something out less something is especially, you know, different. So New York has. It's just New York, there are certain cities in the world and I deal with, you know, all all the cities, ideal and Madrid and Paris and London, and Lisbon. And Milan, I'm I actually have teams in each of those places. But this there's only one New York, and that is that is a given but but the dollar has become so strong that it hurts the people who are buying from Europe and buying from England. On the on buying. It's it's you know, it's now the Americans buying abroad, because seeing the rate of exchange is is incredible. It's it's the time to buy in Europe, it's the time to buy in London. Yeah. And London is having a boom. And I think what's happened is now it's London and New York, who are really like neck and neck and selling and having the same type of people buying the same group. It's almost like we're sisters under the skin in these two cities. No other city I noticed, because I noticed that there's been a whole downturn regarding Paris when people are not requesting people always used to request Paris. Great deal, but not so much.
Farnaz Fazaipour 7:11
As Americans, you're talking about Americans?
Lee Summers 7:13
And remember, I'm handling global people. We've opened up a Singapore office, and we're not they call me up they told me London, London, London.
Farnaz Fazaipour 7:25
Good to hear. So we actually just did a market update recently, where we spoke to seven or eight top professionals in the industry. And the general conversation seemed to be that for us in London, we're looking at dollar based cash buyers to take opportunities of the London market right now because the interest rates are going up. And the dollar is very strong compared to the pound. So the global conversations that you're having, and the people who are saying London, London, London, what are they actually looking for? Are they looking for second homes, they're looking for investments? Or are they looking for substantial homes? Or is it a combination of everything?
Lee Summers 8:03
It's a combination, I think. I'm handling, I'll give you a little example of what something is happening right now. We have an actor who lives in Los Angeles, and he's quite known. And he is doing a drama here for six months for a while. And Netflix is writing and storing in it. And he loved it so much. He rented something for six months, and he wants to buy here. But his goal, I asked him what his goal is he said I want to live in it. But then I want to be able to rent it out also. So use it both ways. And take advantage of the fact that last night look, the pound was at 114 which hasn't been like that for a very, very long time. So that's taking advantage of the situation. What is interesting is is that for years people only wanted certain areas in London, you know, going more towards the Oh, I love Belgravia. I love Chelsea, I love all of that. But now they are asking about all of the outlying you're nowhere. Well, the families. We know Notting Hill, Orland Park, housing, you know, made a veil perhaps. But now, so they they've opened up their mind. They've heard so much about shortage and the restaurants opening up. So the saying, you know, what about there? It's it's the individual, the individual.
Farnaz Fazaipour 9:32
It's interesting to say that because we've recently come across a number of younger children of our contacts, saying, you know, I don't want to live in our family penthouse in Notting Hill anymore. I want to move east or I don't want to stay in South Kensington in the family Mews house that we have. I want to move east. So it's interesting to hear that you know, this is something that people are not frightened of even as far afield as as as Los Angeles. but it's really becoming a permanent place destination for investment.
Lee Summers 10:04
It is, you know, it goes back many years to when Tribeca was first being, you know, developed and people would go, are you kidding? You know, Upper East Side, Upper West Side, you know, yes. My Tribeca was like, not considered good. Tribeca is now the most expensive area in New York City. More expensive than the upper Eastside near Fifth Avenue. It is hard to believe, because they're big. They're lofts that restaurants, the activity. And New York has done a multi multi billions and billions of dollars that started with Mayor Bloomberg have, it's hard to believe what's going on in New York, the things they have, and the things that we expect that it takes him It blows your mind away. But on the other hand, you can't get around the streets in London, because they don't stop building, they are building and they're big thing. And they're pulling down and whatever it is amazing. You can spend a day in a taxi and wander around trying to get to your destination because of the close streets show this you feel the boom, you feel it, you feel it in the air.
Farnaz Fazaipour 11:12
I was gonna say that because we've had all these interest hikes, and people are getting a bit nervous about the market. Although, you know, one agent that we talked to said that, you know, we're going to glue, we're gonna, we're gonna stick ourselves like glue to anybody with dollars in cash, because those are going to be the buyers. But right. So you feel that, that from where you're sitting, there is a lot of demand for London, from the international community.
Lee Summers 11:41
There's, there's a lot of demand from London, for London, there's a lot of demand for London, because London is London. And and it's the shared language too. You know, it's easy, people come here, and they have this shared language, they don't have to worry about, you know what I mean, communicating, when you are in an apartment, you know, where you have to call the plumber, you have to do something, you people understand as opposed, let's say, if they move to Delano, and you know, and cannot, you know, trying to get somebody to fix the electricity went out and calling up this this, this is something actually to think about.
Farnaz Fazaipour 12:23
There's no language barrier.
Lee Summers 12:24
Shared. It's a shared being English and American. It's a shared. It just is, you know, it just is we all even having our same miserable political problems, like you do. We've all to get them and we're sisters and, you know, Sisters in Crime, so to speak. But, but are you what, you know, when we're going on to the continent, I'm surprised about the calls for Portugal, Portugal has, you know, come into his own and are and so there's Portugal is Italy, Spain, people. Madrid is Madrid. If our if he were to ask me, what would be the second most populous city to buy and it would be Madrid in in Europe. It is. It is amazing. What's going on there. We just opened a second office there. It is amazing. And what is also I find interesting. Many of my Hong Kong clients, I dealt a lot in Hong Kong, I used to go to Hong Kong, maybe six times a year, and my clients were all the young wealth management, young men, and many of them have moved to London, since the closing up of certain freedoms and in Hong Kong. They have moved their businesses and moved themselves to to London. And they are buying in London, that that we're also buying villas in on the continent or in Florida. And also, dare I say it, Aspen, we have a wonderful office in Aspen. I mean, we have a lot a lot of British people buying and in fact, our Aspen person was just here meeting some people and we share a few clients. So you're seeking Aspen but they could go skiing here with so many ski resorts, but it's different and it's beautiful. And it's you know, so yeah being a place in the states.
Farnaz Fazaipour 14:30
We're also grateful for proper skiers, not the Aqua ski scares, because you get a lot of good skiing up and Aspen and Vail and what have you. Well, I'm going to thank you for joining us today because we're planning to talk to some of your other team members to get more specific insight into the Spanish market, the Portuguese market and the Italian market, which seems to also be very popular. But thank you for coming back to the thank you for joining us.
Lee Summers 14:56
Farnaz Fazaipour 14:56
And for our listeners if you need any advice or want to get in touch with Lee then you can head over to our experts directory where you'll be able to connect with Lee directly.
Thanks for listening to the London Pproperty podcast, head over to Londonproperty.co.uk and subscribe to our newsletter to receive latest updates.