Most Popular
1. Banking Crisis is Stocks Bull Market Buying Opportunity - Nadeem_Walayat
2.The Crypto Signal for the Precious Metals Market - P_Radomski_CFA
3. One Possible Outcome to a New World Order - Raymond_Matison
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
5. Apple AAPL Stock Trend and Earnings Analysis - Nadeem_Walayat
6.AI, Stocks, and Gold Stocks – Connected After All - P_Radomski_CFA
7.Stock Market CHEAT SHEET - - Nadeem_Walayat
8.US Debt Ceiling Crisis Smoke and Mirrors Circus - Nadeem_Walayat
9.Silver Price May Explode - Avi_Gilburt
10.More US Banks Could Collapse -- A Lot More- EWI
Last 7 days
Stock Market Volatility (VIX) - 25th Mar 24
Stock Market Investor Sentiment - 25th Mar 24
The Federal Reserve Didn't Do Anything But It Had Plenty to Say - 25th Mar 24
Stock Market Breadth - 24th Mar 24
Stock Market Margin Debt Indicator - 24th Mar 24
It’s Easy to Scream Stocks Bubble! - 24th Mar 24
Stocks: What to Make of All This Insider Selling- 24th Mar 24
Money Supply Continues To Fall, Economy Worsens – Investors Don’t Care - 24th Mar 24
Get an Edge in the Crypto Market with Order Flow - 24th Mar 24
US Presidential Election Cycle and Recessions - 18th Mar 24
US Recession Already Happened in 2022! - 18th Mar 24
AI can now remember everything you say - 18th Mar 24
Bitcoin Crypto Mania 2024 - MicroStrategy MSTR Blow off Top! - 14th Mar 24
Bitcoin Gravy Train Trend Forecast 2024 - 11th Mar 24
Gold and the Long-Term Inflation Cycle - 11th Mar 24
Fed’s Next Intertest Rate Move might not align with popular consensus - 11th Mar 24
Two Reasons The Fed Manipulates Interest Rates - 11th Mar 24
US Dollar Trend 2024 - 9th Mar 2024
The Bond Trade and Interest Rates - 9th Mar 2024
Investors Don’t Believe the Gold Rally, Still Prefer General Stocks - 9th Mar 2024
Paper Gold Vs. Real Gold: It's Important to Know the Difference - 9th Mar 2024
Stocks: What This "Record Extreme" Indicator May Be Signaling - 9th Mar 2024
My 3 Favorite Trade Setups - Elliott Wave Course - 9th Mar 2024
Bitcoin Crypto Bubble Mania! - 4th Mar 2024
US Interest Rates - When WIll the Fed Pivot - 1st Mar 2024
S&P Stock Market Real Earnings Yield - 29th Feb 2024
US Unemployment is a Fake Statistic - 29th Feb 2024
U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - 29th Feb 2024
What a Breakdown in Silver Mining Stocks! What an Opportunity! - 29th Feb 2024
Why AI will Soon become SA - Synthetic Intelligence - The Machine Learning Megatrend - 29th Feb 2024
Keep Calm and Carry on Buying Quantum AI Tech Stocks - 19th Feb 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

How to Buy Prime Manhattan Real Estate for Less Than $100

Housing-Market / US Housing Sep 26, 2013 - 12:03 PM GMT

By: Money_Morning

Housing-Market

Robert Hsu writes: Unless you own a home in each of America's 20 biggest cities - or you're an economist - a 12.4% increase in the S&P/Case-Shiller Index doesn't mean much.

You can't make money from a nationwide statistic. Not in real estate...


Cleveland, for example, may have seen a 3.4% increase from July 2012 to July 2013. But that's nothing compared to Los Angeles, where prices jumped 20.8%. Or San Francisco, which posted a 24% year-over-year increase.

Las Vegas prices jumped even higher, up more than 27%.

And then there's New York, where you can make a killing on some prime Manhattan real estate right now...

There's a hassle-free way to do it, too. So you'll never have to worry about tenants, taxes, insurance, maintenance...

You won't need a million-dollar down payment, either.

Thanks to one savvy New York firm, you can start building your own Manhattan real estate empire with less than $100...

You Can Invest in These All-Cash Deals

The recent housing and real estate recovery is a double-edged sword. There are amazingly low rates, but it's much harder to get a loan, especially if you're an average borrower.

The real driver of higher prices, particularly in neighborhoods like Beverly Hills and Manhattan, is all-cash international and institutional buyers.

And Vornado Realty Trust (NYSE: VNO) is one of these big buyers.

The Manhattan-based real estate investment trust (REIT) owns more than 28 million square feet of high-end office, retail, and residential space in its home town. (You can tour its New York properties right here.)

It owns high-rent properties in San Francisco, too, and in Washington, D.C.

But this is not your average REIT...

The Dividend Is Just a Bonus

Most people buy REITs because they come with above-average dividends. And Vornado certainly pays a decent one, at 3.4%.

But this is more than an income play. Way more...

First, this REIT comes with billionaire investor Stephen Roth, Vornado's founder. Thanks to his expertise, Vornado has bested the returns on the S&P 500 by a factor of six to one... since 1990.

Second, in addition to its substantive commercial real estate holdings in prime locations throughout the country, Vornado has equity stakes and minority holdings in many well-known businesses. The company currently has a 6% ownership stake in retailer J.C. Penny (NYSE: JCP), a 33% stake in privately owned retailer Toys R Us, and ownership of the landmark Chicago Merchandise Mart.

And third, Vornado is an equity REIT. So, unlike risky mortgage REITS, it's largely immune to the negative pressures of a rising interest rate environment.

That's one of the reasons why Vornado is so well positioned right now. The firm actually invests directly in prime real estate properties. And the rents from these properties are what Vornado uses to generate its income.

And if you buy Vornado's shares today, it'll be your income, too...

Robert Hsu is one of the world's leading financial analysts. He made his mark on the financial world early, first as a quant analyst for a billion-dollar hedge fund, then as a portfolio manager for Wall Street powerhouse Goldman Sachs. He earned his first million at 29 and then retired at 31.

After five years in retirement, Robert founded the world-class money management firm Absolute Return Capital Advisors LLC to help private investors build their wealth. He currently serves as president and lends his special expertise in income investing to his clients and subscribers.

Robert is a published author and appears regularly on national financial TV and radio shows like Bloomberg and CNBC. He graduated from the University of California-Los Angeles with a degree in economics. Robert and his family divide their time between their homes in Beverly Hills and Taipei.

Source :http://moneymorning.com/2013/09/26/how-to-buy-prime-manhattan-real-estate-for-less-than-100/

Money Morning/The Money Map Report

©2013 Monument Street Publishing. All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), of content from this website, in whole or in part, is strictly prohibited without the express written permission of Monument Street Publishing. 105 West Monument Street, Baltimore MD 21201, Email: customerservice@moneymorning.com

Disclaimer: Nothing published by Money Morning should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investent advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication, or after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Money Morning should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.

Money Morning Archive

© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in