Last day of vacation here in TCI. I have included a picture of "Chalk Bay", quite a wonder of color to behold! There are many parallels between the TCI and NY real estate markets. Much like NYC the high end here seems to be escaping untouched. 2500 Square Foot Beachfront condos in luxury resorts are going for as much as $2.6 Million and more. There are bargains to be had in older resorts, like Ocean Club West, where a 1600 sf 2 bed/2.5 bath could be had around $900k. Most of the resorts offer a program to rent out your condo while you are home, and many of them end up being cash flow positive. When I get back to New York I will try to put together a more comprehensive analysis. There is an incredible amount of construction on the island, so much so that you would have to wonder if the TCI housing market is just lagging the US housing market and heading for a bubble. I'm no expert of the local economy, so I can't quite answer that question. Just calling it the way my gut feels it. However, like the Manhattan coop market, most transactions require a significant portion down, usually 30% or more, so there is some insulation. And, if you had to live in your investment to ride it out, it would be hard to pick a better place.
Here are your monday morning links:
Responding To A "Less Heated" Market (NY Times)
Trump Soho Work Stopped Again (NY Daily News)
Brooklyn Bridge Park Hits Another Snag (NY Post)
City Planning Backs Vornado's Harlem Park (The Real Deal)