NYC always has been a draw for Europeans. The Irish are “buying to let.” As the article cautions, the holding cost in NYC are very high ($2000/mo for maintenance is common). The buyers will soon realize that their investments don’t return, especially if the market is sliding.
Property taxes in America are very high compared to Europe.
Think $500k condo (not possible in Manhattan but OK in SD). At 6.5% interest only that’s $32,500/year. Property taxes at $6250/yr. That’s about $3200/mo. Without tax deductions, it doesn’t pencil out. As for a 2nd home, why not stay at the Sheraton when you go on vacation?
