2018 Outlook: What to Expect for the New York City Real Estate Market

Many people have been asking what we expect for the Real Estate market in 2018. While it is a bit early to tell the impact of one of the major items at play in 2018, namely tax reform, 2018 looks to be favorable for the real estate markets largely due in part to a strong job market and strengthening economies globally. We have broken down our 2018 outlook into 4 key areas – tax reform, economic backdrop, inventory, and rentals

Tax Reform

The new tax law is likely to be the most impactful to the 2018 real estate market compared to our other key areas, and is a large element of uncertainty for the housing market. This sweeping overhaul with changes from personal to corporate taxes has provisions that are expected to impact real estate markets, especially in high tax states such as New York, New Jersey, and California.

The 2 changes to be most aware of in the bill are the capping of State and Local deductions to $10,000 and the reduction of the Mortgage Interest Deduction from $1MM to $750,000. Both of these changes could make owning a home more expensive than previously planned for some individuals and impact the amount being considered to mortgage a home.

We are only 10 days into the New Year, so the impact of changes are still unclear. Q4 2017 activity was strong, and historically Q4 momentum carries in to the beginning of the following year. We see 2 possible scenarios that could unfold as a result of the tax changes:

• Pace of sales slows at the beginning of 2018 as buyers might pause and speak to their accountants in an effort to try to better understand their new tax picture before making a purchase. In this scenario, we see downward pressure on pricing.
• Volume and Pace of transactions from Q4 continues into 2018 as buyers may recognize that the uncertainty that may be instilled in some regarding tax reform creates opportunity, and they seize this opportunity. Additionally, buyers are likely armed with padded investment accounts and year-end bonuses.

Regardless of scenario, the largest impact of the tax bill is likely to influence buyers in the $1M+ to $5M price range.

Economic Backdrop

Moving into 2018, there are a lot of favorable economic indicators that create a favorable backdrop for housing. It is important to remember that the real estate markets are highly correlated to both the job and stock markets. Economies around the world are expected to grow in 2018 with some foreign economies outpacing U.S. growth – could foreign buyers increase in 2018?

Here in the U.S., the Fed increased their growth outlook for 2018 in their minutes released in December. Their notes utilize language that suggests a job market that will continue to remain strong, and, perhaps, grow slightly while being accompanied by rising wages. This is a positive for the housing market. Additionally, the Fed is currently suggesting 3 rate hikes in 2018 as Yellen’s term comes to an end.

The consensus among analysts is that equity markets will continue to rise in 2018. While the magnitude of the rise may not be as large as in 2017, gains will continue to add to already large investment accounts.

Inventory

We expect high inventory in the luxury market to persist in 2018, or increase with additional new condo inventory coming to market.  Developers are continuing to reshape the New York City skyline in partnership with some of the best names in architecture. Projects like 125 Greenwich and 262 Fifth Avenue will increase luxury condo inventory. Increased inventory at the higher end of the market will continue to pressure pricing at this level.

To remain competitive with the pool of wealthy buyers, we expect developments to continue to push the bar. Central Park Tower is a great example of this as they are trying to allure global titans to call the building home for their pied-a-terres or place to park money in the US market. Over-the-top amenities will continue to be the norm in both condo and rental buildings.

Rentals

The rental market peaked in 2017 after being on a march higher for quite some years. We all saw the rental market take a turn in 2017 with rents seemingly dropping across the board. We expect concessions to remain at all-time highs throughout 2018. Landlords will need concessions to lure tenants to their units. The continued pipeline of new inventory that will come on the market should cap rental prices from overly rises in 2018. However, the continued attraction of New York – labor market, culture, etc. will serve as a floor for rental prices so we do not expect any large scale drops in 2018. 

6 New Year's Eve Parties to Ring in 2018

It is hard to believe it is time to say farewell to 2017 and raise a glass to welcome 2018 with open arms. New Year’s Eve parties will take place in cities around the globe, from New York to Tokyo. Everyone rings in the New Year a bit differently, from quiet dinners to champagne parades as clubs and everything in between!

Deciding on New Year’s Eve plans can be stressful, especially if friend groups want to head in different directions. If you are looking for a way to say goodbye to 2017 and hello to 2018 in New York City, we have curated a list of a few happenings around the city. Of course, these are just a drop in the bucket of all the events taking place on New Year’s Eve in NYC.

Top of the Standard with Gloria Gaynor

Singer Gloria Gaynor will be hosting a NYE Bash on the top of The Standard Hotel in the Meatpacking District. The glitzy black-tie party will feature DJs all evening as well as a countdown and performance by the Disco legend herself. The venue is sure to offer a backdrop of spectacular skyline views in all directions. Tickets start at $275.

Spa of Sensorium

NYE at a secret spa in Brooklyn? That is an option! Drink, Dance, and even detox at Spa of Sensorium. The Russian Turkish bath house will be transformed into a Sonic Jungle. Party goers can recharge in saunas, steam room, Jacuzzi, and cold plunge pools, and then dance the night away with 2 rooms of music. Tickets start at $125.

The King’s Winter Masquerade

The McKittrick Hotel, of Sleep No More Fame, will be hosting their final masquerade of 2017. The opulent masked soiree will include a large feast, open bar all night, live entertainment, and other curiosities throughout the hotel. Tickets start at $295.

Gatsby Party at Catch Rooftop

Say goodbye to 2017 in Gatsby style at Catch in Meatpacking. The party will be Gatsby themed with 1920’s style cocktail attire and décor. Wear your glitziest and most glamour attire as you enjoy a 2-hour open bar. Tickets start at $125.

Black Tie Gala at The Carlyle

Head to the Upper East Side and ring in 2018 with Steve Tyrell at Café Carlyle. Enjoy a four-course prix fixe menu that will be followed by dancing in the lobby with the Peter Duchin Orchestra. 8pm and 8:30pm seatings are available. $730 per person.

Midnight Run

Partying not your thing? Dancing in Central Park and take a run that event counts as credits towards the NYC Marathon with NYRR. The evening starts at 10pm with dancing, then at midnight hundreds of festive joggers embark on the run while taking in the Central Park fireworks. Participation starts at $45.

Inside: Central Park Tower Rises on Billionaire's Row

The 57th Street corridor in Manhattan became synonymous with Billionaire’s Row when One57 pushed prices received for condos to new limits at the time. Since One57 rose to new heights above Midtown Manhattan, a new wave of construction has been occurring along West 57th Street. New supertall towers coming to Billionaire’s Row include 220 Central Park South, 111 West 57th Street, and 217 West 57th Street, or Central Park Tower. The latter is sure to push the boundaries of “Billionaire’s Row” to new limits with exclusive and pricey pads that are unrivaled by other projects.

Central Park Tower, from the same developers as One57 – Extell, will rise high above 57th Street and literally tower over Central Park as it climbs 1,550 feet tall. The building, designed by Adrian Smith and Gordon Gill Architects will surpass nearby neighbor 111 West 57th Street in height as well as 432 Park Avenue. Central Park Tower is expected to be completed in 2019, and construction progress suggests that it is on track for a 2019 completion.

The base of the building will be home to a 7-level flagship Nordstrom store as well as other office and amenity space for the condos above. The current plan for the building shows 183 residences which will start from the cantilever up. Of the units, the largest on the plan is the uppermost penthouse which is currently configured as a triplex on floors 129-131 spanning 17,000 square feet.

In an ultra-luxury market that has slowed since the peak of One57 in 2014, Central Park Tower aims to once again push the limit for Manhattan real estate. The exclusiveness of the property as well as the location and trophy apartment offerings, Central Park Tower is attracting the world’s elite. 20 units are expected to have asking prices of $60M+ and price per square foot throughout the building will be $7,000+.

Of the units listed in the offering plan filed with the New York Attorney General, the smallest is a studio asking $1.542M ranging to the most expensive listed on the plan, Unit 53. Unti 53 spans over 7,900 square feet with a private terrace complete with an outdoor pool asking $95M. The largest units of the building still appear to be held based on the offering plan filed.

Interiors are sleek and luxurious as expected. The signature "Extell Choice" will be available with a selection of light or dark wood kitchen as well as brass. Additionally, buyers have the choice of either a light or dark bathroom finish as well. 

The amenities will be as luxurious and lust worthy as the apartments themselves. Most notably, perched on the 100th floor will be grand ballroom with a bar, cigar bar, and private dining – imagine those views! The Michelin Star restaurant will have seasonal farm-to-table style menu. Other amenities within the Central Park Club include a resident’s lounge, conference room, and play area. The 16th floor will include an indoor pool, and there will also be an outdoor, landscaped terrace with a 60-foot pool. Both pools will be salt water while the outdoor cabanas will offer butler service.

Questions or interest in the ultra-exclusive new development? The Victoria Shtainer Team has exclusive access to the Central Park Tower sales gallery and additional information. Please contact us to schedule your appointment or to request additional information.

Header Image Courtesy of Central Park Tower

6 Things To Do in New York This Winter

Things to Do in New York City this Winter

We know it’s cold outside and there are fewer things nicer than watching New York City streets through your frosted window while you cuddle under a fuzzy blanket and drink hot cider, but New York City in the wintertime is worth venturing out into the cold for.

Chill is in the air, but holiday music can be heard on every street corner and the city is aglow with lights and winter decorations that you won’t soon forget. So, tip your doorman and leave the building. Venture to 1251 Sixth Avenue, near Rockefeller Plaza and look out for the glowing giant red orbs reminiscent of pomegranates, or the gigantic Christmas tree ornament sculpture popping out of a city fountain on 6th avenue. There are endless events and festivities as the new year approaches, and unless you have a friend who can get you into The Metropolitan Club, it can be difficult to choose where you’ll spend your time. That’s why we’ve done all the work for you and put together a list of some of the most exclusive activities and events in and around Manhattan and New York City to keep you in the know this winter.

Window Shop on Saks 5th Avenue

via

One of the best things to do in New York City during the holiday season is wander through Midtown to check out extravagant window displays at stores like Macy’s, Bloomingdale’s, Saks Fifth Avenue, and more. Every winter, the shops on Saks 5th Avenue compete for the best window display by bringing to life fairy tale panoramas, winter wonderlands, and otherworldly scenes of grandeur and winter cheer. Curbed, a New York Neighborhood guide, curated this user-friendly map of the best holiday window displays in the area, so they’re easier to find than ever.

See the World-Famous Nutcracker Ballet

via

Ah, a night of beautiful dancing, magnificent costume design, and high-end musical composition is in store for you at the NYC Ballet’s rendition of the Nutcracker. Running until December 31, this globally acclaimed ballet will delight and surprise regardless how many times you’ve seen the ballet before. All 90 dancers, 62 musicians, 40 stagehands and more than 125 children, in two alternating casts, from the School of American Ballet join forces to make each performance as magical as possible. Tickets range from $89-290, depending on the seats you choose. We recommend sitting as close to the orchestral pit as possible, to get a glimpse of both the dancers and musicians alike.

Enjoy a festive dinner at Old Homestead Steakhouse

via

The Old Homestead is the perfect place to flock to on a wintery night with friends and loved ones. Located in the heart of the former meatpacking district, this old-world steakhouse was made famous as the first restaurant in the United States to import Japan’s fabled kobe beef for use as the feature in its sumptuous steak dishes. The interior is plush and comforting, perfect after a chilly evening trek through the city.  Menu features include the Oyster Rockefeller Royale topped with a simmering pernod cream, the filet mignon for two with golden Yukon potatoes, aged cheddar spinach, sour cream and Asian vegetables, and the deliciously famous Homestead chopped salad.

Escape for a Weekend at the Windham Mountain Resort

via

The Windham Mountain Resort, a true gem hidden away in the great northern Catskills, is only three hours from New York City and offers everything from skiing and boarding to spa relaxation and delicious dining opportunities. It’s the perfect place to escape for the weekend when you need a break from the droves of winter tourists flocking to New York to see the famous city decorations and the NYE festivities. Packages are varied, so whether you need to play hooky in the middle of the week or want to embark on a weekend getaway, Windham has an option for you to enjoy.

Get Your Groove on at NYC Winter Jazzfest

via

Each January, Winter Jazzfest hosts the genre’s top talent over the span of several evenings. Its signature two-night Greenwich Village marathon brings vets and up-and-comers, hordes of music fans and a palpable air of excitement to an array of cozy downtown venues. The shows aren't individually ticketed, so a wristband grants you access to any of each night's shows—as long as venues don’t fill to capacity. This is a model built for venue-hopping and exploration. If your preferred show is full, pull out the schedule, and head to one of the nearby spots for something unexpected. This event happens after the New Year celebrations, which can be a downtime for happenings around the city. So grab yourself a ticket before they sell out and get your winter groove on to combat the post-NYE blues that can set in.

Drink in a Rooftop Igloo

via

This is one experience you won’t want to miss. 230 Fifth declares itself “New York's largest outdoor Rooftop Garden and fully-enclosed Penthouse Lounge.” One floor is fully enclosed, while the rooftop garden is open to the sky. If it’s raining, the venue will provide umbrellas and keeps it cozy by heating the place on cooler evenings. This venue is a marvelous place to sip cocktails before making your way to one of many New Year’s Eve happenings around the city, if you need a pre-party.

Guest Blog by Jeremy Alderman

How Much Should I Tip? - NYC Holiday Tipping Guide

The holiday season is always a time to give back to those that had a positive impact on our lives over the past year. One question that always comes up, especially in New York City, is how much to tip the building staff and those that are intimately involved in day-to-day life?

Holiday tipping is an opportunity to give back to those that make running our daily lives a bit easier. Thus, it is important to say that it is highly encouraged, but not required. As December rolls around, many begin to get anxiety about who to tip, how much to tip, and if he or she should even tip at all. 

Our friends at Brick Underground publish a go-to holiday tipping guide, which has been circulating since 2013. We condensed it, and put our take on what is appropriate as you budget for your holiday tipping. Remember, these are simply guidelines. There are many factors that can influence the tipping decision such as the size of the building (a larger staff equates to smaller individual tips), level of service, seniority, and time in building. 

Renters: Tips do not have to equate to the dollar amount you are paying each month for rent. If you receive a lot of packages, have a stroller that is carried in and out of the building, etc., factor this into your tip. 

It is recommended that you tip in cash. Doorman, Concierge, Supers, etc. all of bills to pay like you and I- they are not looking for fruit cakes, cookies, or homemade gifts at the holidays!

---

Tipping Guidelines

---

Super: $150-200
Doorman/Concierge: $100-150
Nanny: 1 Week Salary
Housekeeper: 1 Week Salary
Dog Walker: 1 Week Salary
Driver: 1 Week Salary
Personal Trainer: $100
Chef: $300-500
Personal Assistant: 1 Week Salary
Hairdresser: $50-75
Manicurist: $25

Something to Consider: If you have been tipping throughout the year utilizing a "pay as you go" method, it is customary to tip on the lighter side during the holiday season.

How the GOP Tax Proposal Could Impact Real Estate

The GOP Tax Reform efforts are garnering headlines across the board as the potential for a new tax plan could have impacts on personal taxes, business, and of course, housing. How will the current proposal impact real estate? At a high level, the current bills would have impact on taxes and mortgages, which in turn could impact the larger market if they skew incentives of buyers, sellers, and homeowners. In both the House and Senate versions, homeownership still looks advantageous as compared to renting, and homeowners will always build equity as a result of price appreciation.

It is important to think of the plan in the context of the entire housing market, not just the Manhattan. Median prices in Manhattan are incredibly higher than the national average, so there are always unique impacts of any legislation in a city such as New York. Both plans are more beneficial for buyers at lower price points, specifically sub $300,000. With both plans, financial benefits of homeownership decrease as home price increases.

Taxes:

Under both plans, tax liabilities for homeownership will generally go up. Some propose eliminating deductions while others do not. Remember, property taxes stay with the owner for the life of the property, they do not go away like a mortgage payment once it is paid off. Both bills propose nearly doubling the standard deduction which in turn will reduce the number of people itemizing their return.

• Senate plan proposes eliminating state and local deductions, including property taxes. The House plan will leave the ability to make deductions, but will cap state and local deductions at $10,000.
• House Bill will result in nearly 1/5 of homebuyers experiencing a higher tax liability
• Senate bill will result in all buyers and current owners seeing an increased tax liability

Mortgages:

The ability to deduct mortgage interest is one of the financial benefits of owning a home that, sometimes, can help in making it more efficient to own rather than rent. Currently, a homeowner can deduct interest on mortgages up to $1 million.

• House bill will cut this deduction to $500,000 while the Senate bill leaves the deduction unchanged
• According to CoreLogic, fewer than 3% of mortgages are over $500,000
• it is not certain whether this would apply to new mortgages only, or also to existing ones BUT the version of the bill that the House passed would leave the deduction where it is for existing loans. Because of this, people might want to consider closing before year's end.

So how would these changes impact the market? Given the higher costs of homeownership in both bills, buyers may not purchase as expensive of homes as pricier homes generally come with higher tax liabilities which could be even higher now. On the other hand, current owners could be more incentivized to just stay put and not trade up to larger homes or move to cities where a job is as cities are generally higher taxed areas.

Overall, the largest impacts of the bills would be in high tax states such as New York, New Jersey, Connecticut, and California given the proposals to eliminate various deductions. Of course, the road to tax reform is long, and it is unsure what will be in the version of the bill that comes out in the end, if any.

Thanksgiving Tradition: Macy's Parade & A Favorite Recipe

Thanksgiving: a time to gather around the table and forget about the gifts while enjoying the company of friends, family, and relatives. Thanksgiving is a time where many come together and reflect upon all the things to be thankful for - family, careers, a home. A common theme weaves its way throughout the Thanksgiving holiday, namely traditions. Traditions are a big part of Thanksgiving from that favorite recipe to all gathering around to watch the Macy's Thanksgiving Day Parade. 

Read below for some of our favorite Thanksgiving traditions including the Macy's Thanksgiving Day Parade and a favorite recipe that is sure to be a crowd pleaser.

Macy's Thanksgiving Day Parade

The parade is a city tradition dating back to 1924, making it the second oldest Thanksgiving parade in the country, which attracts more than 3.5 million to the streets and an even larger audience via television. This year marks the 91st parade, and Macy's has set up a special interactive website to browse through the parade over the decades and get a look at this year's lineup. The parade is, perhaps, best known for its large balloon class which has featured many cultural icons over the decades. This year, the lineup is slated to include the likes of the Pillsbury Dougboy, Ice Age's Scrat and his Acorn, and Angry Birds to name a few. The parade route is 2.65 miles long, starting at 77th street and Central Park West.

Route: 77th at Central Park West south to 59th Street.
East on 59th Street to 6th Avenue.
South on 6th Avenue to 34th Street.
West on 34th Street to 7th Avenue.

The admission is free to the Parade. The best place to view it is between 72nd and 61st Street and Central Park West.

The viewing areas along the route gets incredibly crowded. It is recommended that you arrive no later than 6:30am if you plan to scout out a good viewing spot along the route.

Sour Cream and Chive Mashed Potatoes 

via

The perfect compliment to the Thanksgiving turkey? Mashed potatoes. This recipe takes traditional mashed potatoes to a new level with sour cream and chive. They are sure to be a crowd pleaser and will have guests coming back for seconds!

Ingredients:

• 2 pounds Yukon Gold potatoes 
• 8 tablespoons unsalted butter, melted  
• 1/2 cup half-and-half  
• 1/2 cup sour cream 
• 1/4 cup chopped chives  
• Salt & Pepper to Taste

Bring potatoes to a boil, then reduce to a simmer and cook until the potatoes are fork tender, about 20 minutes. In a small pot over low heat combine half-and-half and butter. Heat until hot but not simmering. Drain the potatoes in a colander. Wipe the saucepan dry. Add the potatoes back to the saucepan and mash. Give it a quick mix with a hand mixer to incorporate some air and ensure a smooth texture. Fold in the melted butter and half-and-half mixture until just incorporated. Fold in sour cream and 1/4 cup chives and season with salt and pepper.

Of course, it is important to remember what we are grateful for and share that with others. We are so grateful for good health and loyal clients that allow us to do what we love, in one of the best cities in the world!

Happy Thanksgiving!

-The Victoria Shtainer Team

The Best of Park Place

In the game of Monopoly, Park Place has one of the highest mortgage rates and rent rates in the game, and is also one of the hardest spots to land on. It is thus coveted to be on Park Place. In Lower Manhattan, we have our own Park Place that is making a name for itself as a destination for some of downtown’s best luxury living. Famous architects from Robert A.M. Stern to Jean Nouvel are putting their mark on Park Place. Here is the best of Park Place:

 Woolworth Tower Residences – 2 Park Place          

 Situated at the gateway to Tribeca by City Hall Park, the Woolworth Tower has been an icon of the downtown skyline since its completion in 1913. The building was originally commissioned by retail titan Frank Woolworth, and has had a storied history. French architect Thierry Despont, known for his restoration skills, is transforming the top 30 floors into a boutique collection of 33 luxury residences. Additionally, the top of the tower will feature a crown jewel of all of the city – a 7 story penthouse that is rumored to be asking $100M+. In his transformation, Despont is paying great attention to detail and homage to the building's landmark status and heritage as well as its Beaux-Arts design, visible from the small "W" detailing in the kitchen to the intricate residential lobby entrance.

Via Curbed

The homes feature gracious layouts with high ceilings as well as features such as eat-in kitchens and luxurious master baths sheathed in Calacatta Prima marble. Views from the residences of the skyline and beautiful terra cotta ornamentation are stunning!

Via Curbed

The building also offers an impressive collection of amenities, starting with the beautifully restored lobby with coffered ceilings on 2 Park Place. Amenity offerings include a 50-foot lap pool, fitness center with sweeping North and East views, wine storage, wine-tasting room, and a private residents’ lounge.

Current availability starts with a 1 bed/1.5 bath asking $4.575M.

Four Seasons Private Residences Downtown – 30 Park Place

 30 Park Place, the first private residences by the Four Seasons in New York, has had an overwhelmingly positive reception since its launch. The building is positioned conveniently in the heart of downtown Manhattan, moments from The Oculus, TriBeCa, and SoHo. 

30 Park Place is a Silverstein Property designed by Robert A.M. Stern architects and is currently the tallest residential tower in lower Manhattan standing at 937 feet. The building is home to 157 luxury residences.

Via 30 Park Place

Residences feature a warm feel, a recognizable feature of many of Stern’s homes. Because residences start on high floors, many offer multiple exposures with wonderful views of downtown. Finishes include solid white oak cabinetry, Colorado White Marble, and Bianco Dolomite marble in master baths.

Via 30 Park Place

Because this is the Four Seasons Private Residences, residents of 30 Park Place enjoy a suite of amenities and offerings that offer an unparalleled luxury living experience. Residents can enjoy access to hotel amenities such as the indoor lap pool, in-residence dining from Wolfgang Puck's CUT, and car service. 

It is also rumored that big names are calling the building home including Yolanda Hadid.

Current availability starts with a 1 bed/1.5 bath offered at $2.995M

45 Park Place

Developer Sharif El-Gama has assembled a world class team to establish 45 Park Place as an internationally recognized addition to lower Manhattan’s skyline. Pierre Lissoni, Michel Abboud, and Jean Nouvel have partnered to each lend their unique perspective to various elements of this new modern masterpiece.

45 Park Place will be home to an exclusive collection of 50 homes with the base of the tower dedicated to loft-like homes while upper floors have full-floor residences with stunning 360-degree city views. 2 duplex penthouses will be the crown of the building that will feature custom sculptural staircases, an iconic touch from Lissoni.

Via 45 Park Place

Luxurious finishes, selected by Lissoni, can be found throughout the residences. These include things like integrated Gaggeneau appliances, full height lacquered cabinetry, and Italian limestone. Kitchens are designed by Italian custom manufacturer, Boffi, while master baths and powder rooms feature custom pieces from MOMA Design.

Via 45 Park Place

Amenities have also been designed and curated by Pierre Lissoni and encompass 3 levels. Amenities will include a pool, spa, gym, yoga studio, as well as a residents’ lounge and children’s playspace.

Current availability starting with 2 Bed/2.5 bath offered at $3,800,000.

Interested in experiencing the Best of Park Place? Contact us to arrange your property tours.

Must See: Volez Voguez Voyagez Exhibition by Louis Vuitton

Heritage – something that defines iconic brands around the world. Whether in fashion, automotive, beauty, or architecture, heritage is common among the best brands and the most well-known brands. Volez Voguez Voyagez by Louis Vuitton is an exhibition that explores that heritage of the Louis Vuitton brand, sharing their unique story and the impact that have made across centuries in travel and luxury.

The exhibition has completely transformed the old American Stock Exchange building on Trinity Place into a complete world of Louis Vuitton. Visitors step into the story of Vuitton from the beginning as they are told the story of a 14-year-old Louis Vuitton who left Anchay on the eastern border of France in 1835 to head to Paris by foot, reaching the city of lights 2 years later. From there, visitors walk through a visual representation of milestones and iconic pieces from the maison until the modern era.

The exhibition focuses on 10 aspects that have contributed to the success of the House of Louis Vuitton:

• The Trunk of 1906
• Wood
• Classic Trunks
• The Invention of Travel
• Writing
• The Painting Trunk
• Curio Trunks
• The Beauty of Fashion
• Music
• Louis Vuitton Loves America

From some of the first trunks created in 1892 to pieces owned by famous stars and one-of-kind collaboration pieces, the exhibit has unique and rare pieces that you will not be able to view anywhere else. The end of the exhibition features artisan showcasing how certain aspects of the bags are made where visitors can also feel the various types of leathers. There is also a small boutique at the end featuring a variety of coffee table books, small leather goods, and the newest range of perfumes.

Exhibition Hours:

From 10.27.2017 until 1.07.2018

Monday to Saturday 10:00am until 8:00pm

Sunday 11:00am until 7:00pm

Tickets are FREE – book in advance here

Ways to Save: Buying vs. Renting a Home

Buying vs. Renting is a debate that takes place often in the real estate world. The debate is influenced by many factors: location, affordability, proximity to public transportation, carrying costs, school district zoning, and proximity to nearest park.  Additionally, other factors such as how long you plan on staying, mortgage rates, inflation, and other economic factors can impact the cost to own versus the cost to rent a home. There has even been studies as to what the “breakeven” point may be in NYC neighborhoods!  

While saving for a down payment has become challenging for many of today’s Millennials given high student loans and low wages that barely cover costs of monthly rent plus expenses, the equations frame the decision on whether to buy or rent.

How to Use Your Home as a Vehicle to Save

It is important to understand that owning a home is one of the biggest vehicles to wealth accumulation over the long-term. In fact, for many middle-class Americans that have built equity into a property, their home is the single biggest asset! This is a proven fact.

If you are feeling hopeless and not able to save for a home, here are some helpful tips to save for a downpayment for your new home:

Consider the following:

• You decide to purchase a home with a price of $1,500,000. With the standard 20% down payment, $300,000 is required to purchase the home with a mortgage.
• A conservative approach to estimating the future value of the home could be to link it to the Fed mandated target of 2% inflation. Exclude any neighborhood or real estate market increase. After 30 years, this property would have a value of $2.71M when tracked to 2% annual inflation.
• In this scenario, the buyer has paid mortgage payments, taxes, etc. instead of paying monthly rent. His or her payments have gone to building equity in the home to the tune of $2.4M

Consider the same $300,000 down payment “saved” in a traditional sense- in a brokerage account investment in a stock index. Assuming a 7% average annual return for the next 30 years, that $300,000 would become 2.2M while being subject to all the risks of equity markets. Put that in a traditional bank savings account with the current interest rates at virtually 0, and the needle barely moves on the $300,000.

At time of retirement, the above home could be sold for $2.71M with the owner opting to downsize into a smaller home, with an anticipated, smaller price tag. The incremental price increase could be captured as “savings” for this home owner used in retirement.

Renting a Home and Saving in a Traditional Sense

Buying a home can be intimidating and seem too expensive in the minds of many. Those that feel like home ownership is out of reach continue to rent. When renting a home, saving must take place in the traditional sense – a savings account, brokerage account, etc.

Consider the follow:

• A Median rent in Manhattan for a 2-bedroom apartment of $5,400. Assume no change in rent for 30 years (we will know this is not the case) this renter would spend $162,00 over 30 years, of which none is going towards any ownership.
• The renter in this scenario has $300,000, the amount required in the above scenario to buy a home.
• The renter decides to save this $300,000 traditionally and invests the $300,000 in the stock market in hopes of growth and outpacing inflation. Assuming a 7% average annual return for 30 years, the $300,000 becomes $2.2M.

In this scenario, the renter has paid $162,000 to owner nothing after 30 years while traditionally saving $2.2M. While these examples are simplistic at best, they demonstrate the way in which owning a home can be a vehicle to accumulate wealth and part of a larger financial plan.

Fun Ways to Save

1. If you love going out for a drink with friends consider going during Happy Hour, when drinks are usually half-price.

2. Do you love Starbucks in the office? Consider buying a coffee machine for the office. You save $4/day, 5 days a week, for 52 weeks per year, and that equals $1040 per year!

3. Want to try a new restaurant? Try going during "Restaurant Week", where the menu is pre-fixed, and less expensive, but just as good.

4. Automatic withdrawals from your paycheck to a high interest savings account

Do you have questions on whether now is the smart time to buy a home and stop renting? We are happy to discuss the current state of the market and review options for financing. Contact us to set up a confidential conversation.