Unless climate change puts Manhattan under water, the value of a penthouse will only go up. A fairly good investment.Completely agree. Can’t lose on that.
New York has a loophole that you pay tax based on the footprint of your property, and nothing else. Thus, a single family home built on the same property as a 500 unit condo has the same tax burden... that is to say the penthouse owner pays 500% less tax than if he had the same sized house.
It took a long time for developers to discover this loophole, but now that they have the number of 'expensive' apartments in New York is going to triple year over year.
If this loophole is closed (and why wouldn't it? it's an easy tax grab), there will be a very large number of apartments that are 500X more expensive to own, yet will have no more equity.
Not saying that Hamilton is going to lose his shirt in the Manhattan condo bubble, but just that I hope he's moving there to enjoy the city, not build a nest egg.