To succeed in contemporary society, it’s vital to understand the co-intuitive principles of power. Power comes from these four things: change, information, mass or control. You can sell your time, during which you expend your energy to bring about a certain result (which means you create change). You can also possess unique information, valuable to others. You can exchange that information for something of value, gaining power.
Alternatively, you can own a physical object that has useful, valuable properties (mass) — and you can trade these properties for power or influence over time, while still owning that object. Additionally, you can let your possession increase in value over time, and then trade it for power. This is where real estate comes in. Owning and managing it can give you immense influence. Real estate represents objects of the biggest literal mass that you can have on this planet.
Finally, you can have influence over a large number of people, or even over somebody else who has power. This is the power of control, and it’s the most volatile, temporary, elusive kind of power there is. But it’s very real, and it’s the strongest power of all — while it lasts.
Probably one of the best illustrations of power that comes from influence over people’s minds is the power of celebrity. The power of celebrity is so enticing and valued in our society that we can observe people who have tangible power of other types taking massive action toward gaining celebrity. Probably the most recognizable is the example of real estate mogul and current U.S. president, Donald Trump. Initially notable for his power and influence in real estate and city planning, he eventually pursued the additional power of celebrity, becoming a showman and, ultimately, the president of the United States. Business moguls like Richard Branson, Elon Musk and Jeff Bezos all similarly carefully court media and cultivate their celebrity status.
That’s why I find it intriguing to observe how many entertainment and sports celebrities today make vigorous efforts to move in the opposite direction, and rely on the wise strategy of channeling their power and transforming it from the temporary and fickle power of celebrity into the much more stable power of owning valuable properties. Having amassed the power of influence, these intelligent, well-advised celebrities invest in real estate.
Serena Williams, for example, is not only a 23-time Grand Slam winner; she’s a savvy investor, too, having made smart real estate decisions in Paris, Manhattan and Beverly Hills. Music superstar Taylor Swift recently acquired several properties in Manhattan’s Tribeca neighborhood, having bought one of those properties from another mega-celebrity, Hollywood director Peter Jackson. Actor, producer and environmentalist Leonardo DiCaprio is also well-known for his penchant for eco-friendly real estate dealings in Greenwich Village and Battery Park City.
But you don’t have to be a celebrity to invest in Manhattan real estate. You don’t even have to be rich – simply being financially well-positioned and having a trustworthy team of real estate investment experts can help you amass the power that comes through acquiring and selling properties.
Manhattan real estate is one of the most liquid markets in the country. It depends on Wall Street’s ups and downs, salaries and bonuses of the most influential consumers, the change of intentions among international buyers, mortgage interest rates, the ability to receive a mortgage, supply and demand, and so on.
Trends in real estate are always changing, and six-month timing may bring a big change to NYC market.
Whether your strategy is to buy, renovate and sell within one year, or to hold a property for three to five years, New York real estate is for you. But if you really want to take maximum advantage of New York real estate, my recommendation, based on decades of experience, is to buy property and hold it for at least five years. This way you can catch big waves of buyers’ and sellers’ markets and add significantly to your profit.
When looking to exit, I believe a 1031 exchange is always your best way out of the investment. Vary your portfolio: Invest in residential and commercial properties, multifamily, mixed-used, retail, hotels, garages, self-storage, warehouses and industrial properties. Fortunately for local investors, New York has it all.
Is now a good time to buy? Yes and no, depending on what you are looking for. Currently, the market is the greatest for investing because the prices are at their lowest. Are you interested in the upside, prestige, liquidity and stability of your investment? You may well find it in Manhattan or the other NYC boroughs.