In this special edition of THE STREET, we explore the political, financial and economic impact current policy in New York City is having on the real estate industry. If trends continue, it could threaten the largest consumer sector of residential property sales for the industry: First Time Home buyers … and with it, the real estate brokerage business as we know it
In its latest round of financing, Airbnb, the global home sharing 800 pound gorilla, raised $1 billion putting its market value at $30 billion.
With nearly 3 million listings available throughout the world, Airbnb is currently the largest broker on the planet without a real estate license.
Will Airbnb expand their business model in the next 24 months to broker real estate sales with their enormous customer / client database?
Governor Cuomo announced at Vital Brooklyn, an event held at Medger Evers College, his intention to invest $1.4 billion in the borough for parks, housing and energy efficiency.
The neighborhoods getting the majority of the of earmarked budget are Brownsville, Bedford Stuyvesant, Crown Heights and East New York.
Will the investment proposed accelerate gentrification in the borough?
New York’s new 421a law, now known as Affordable New York, will provide tax abatements and other financial incentives that literally enrich real estate developers at the expense of taxpayers.
The new law calls for tax abatement periods up to 40 years based on the amount of “affordable housing” any new development can produce, depriving NYC’s coffers billions of dollars in property tax payments as a result.
As NYC fights an ever-growing homeless crisis, will state legislators pass the new 421a law at the expense of taxpayers picking up the bill to house the homeless in the future?
Scott Schnall, the famed engineer / expediter, had his credentials revoked by the Commissioner of NYC’s Dept of Buildings due to false statements made to get plans approved in more than seven instances.
The action taken has jeopardized over 250 projects (completed or in process) and may result in homeowners incurring the cost of filing new plans, permits and inspections.
It could also have the affect of removing tenants due to permit work called into question that increased occupancy from recently renovated properties.
How well do you know the expediter you recommend to clients and do they follow the rules or take advantage of relationships inside New York City’s municipal agencies?
A recent study forecast that 70% of Bronx residents are more vulnerable to being displaced than in any other borough in the City.
The report noted the housing crisis in the borough and how its population are more likely to wind up in homeless shelters.
Will middle class New Yorker’s begin to see their incomes erode due to higher taxes related to housing the growing homeless population?
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