Luxury Real Estate

Courtesy of Frederick Peters, President of Warburg Realty

The summer rentals are ending, the vacations are winding down, and all over New York City real estate agents are preparing for the fall season. After the economic uncertainty of the summer, it seems likely that both buyers and sellers will be second guessing their own decisions as the season progresses. So let’s try to answer some of the most basic questions here and now:

Why buy?

Although most New Yorkers rent, the answer to the question “why buy?” is a fundamental one which weaves it way through American life. In no other country is the concept of home ownership so enshrined. We give tax breaks for mortgages, tax breaks for real estate taxes, all because we as a nation believe so profoundly in the concept of home ownership. Kids grow up believing that owning a home is an indication of success, proof that you have made it. Home ownership has burrowed deep into the American mind set; it embodies both security and success. Renting is easy, it can be cheaper, but it doesn’t provide the same level of satisfaction or sense of arrival.

Why buy now?

This is a question agents can never answer. I have learned over the years that the smartest and most successful agents are facilitators, not convincers. The customer always has to answer this question for him or herself. I never try to talk anyone into anything. That said, there are always good reasons to buy now. It means you can begin the process of ordering your life around your new home. But…If you find what you want, then the time to act is now. Many buyers I have dealt with over the years have let go of a property they really liked because they were sure the market was too high, or a better one would come along, or that they could somehow second guess the trajectory of the marketplace. No one ever knows what will happen next, and more often than not they end up sorry. When you and your life are ready, be ready to act. The rest is all, ultimately, irrelevant.

What should I buy?

It always makes sense to reach just a little bit. Not to seriously overextend yourself; that is NEVER a good idea. But to try to buy the best space in the best location you possibly can. When my wife and I did that, we lived for a year with a 50 year old kitchen and over 20 years with original bathrooms. It took us a while to afford the renovations, but every day we enjoyed the wonderful location and spacious rooms of our apartment. Maybe it takes a few years to get new furniture. Maybe it takes a few years to tear down those walls or re-imagine that dining room as a family room. But as long as you got yourself good bones in a good spot, everything else will fall into place.