Posted by Leonard Steinberg on February 24th, 2014

This weekend’s New York Post had a brilliant article written by a foreign owner (Diane Francis) from Canada, reminding all once and for all just how GOOD  foreign buyers are for the City of New York. Recently they have been treated on the same level as terrorists!

Most come here to shop, attend theatre or cultural events, participate in commerce, etc, all the while spending huge sums on real estate taxes, sales taxes, food, clothing, etc, year in and year out, even through recessions as they tend to be wealthier. Their kids don’t use our schools, most don’t keep cars and they use the infrastructure VERY lightly. The chances of them needing a fire truck or ambulance or emergency room are far lower than those living here full time. More importantly, foreign buyers mostly pay cash for their apartments which is a huge stabilizing force for the real estate industry. Yes, they do tend to drive property pricing up a bit, more so in some areas than others, but overall the benefits of foreign buyers far outweighs their negatives. Who in Manhattan complains that their property is worth more? With 70% of New York comprising rental apartments, the impact on the majority is not too great. This article also highlighted how even though buildings like One57 and 432 Park Avenue command stratospheric prices, there are many buildings directly next door that sell for a fraction of these prices. (At 150 West 56th Street, a 43rd floor 2 bedroom apartment with views and a doorman is asking just $2 million – $ 1,742/sf – At 405 West 57th Street, you can buy a 2 bedroom apartment for a little over $ 800k…..not exactly the $ 6,000+/sf we keep hearing about!)

In case you (or Mayor De Blasio) have not read this article, PLEASE read  it:

http://nypost.com/2014/02/22/foreign-real-estate-buyers-in-ny-are-not-the-enemy/