| While the dollar has fallen to new lows against most | | | | in real estate available to the regular buyer. That is, a |
| major foreign currencies, most foreign investors have | | | | condo can be bought and sold relatively easily with |
| shied away from investing in American real estate | | | | comparatively little extra costs of time, effort and |
| due to the subprime mortgage crisis. | | | | money. |
| Furthermore, the subprime problems are the second | | | | This trifecta - a low dollar, rising prices and reasonably |
| major financial crisis in less than a decade that has as | | | | flexible ownership structures - has become too much |
| its root cause a lack of adequate government | | | | for foreign buyers to ignore. In numbers that are |
| regulation and oversight. Hence the large number of | | | | growing fast enough to make most major business |
| economic analysts that have argued foreigners have | | | | media outlets take notice, foreigners have been |
| grown understandably wary of U.S. markets. While | | | | purchasing condos and other properties across the |
| the United States used to receive a "transparency | | | | New York City skyline. |
| bonus" for our famously reliable and detailed | | | | Greater freedom and growth in global financial |
| economic and financial statistics, the U.S. is now being | | | | markets has allowed for an increased demand among |
| penalized by foreign investors concerned about more | | | | foreign investors for New York real estate, with |
| hidden troubles caused by a deregulated financial | | | | demand for new Manhattan condos being particularly |
| industry. | | | | strong. |
| New York City, however, has largely been sheltered | | | | South Korea, for instance, has recently raised the |
| from the subprime woes that have enveloped the | | | | limit it places on its citizens' foreign investments from |
| rest of the country. Because of this and several | | | | one to three million dollars. |
| other factors, the city's real estate prices are largely | | | | High rent prices in the city have also pushed many |
| expected to increase over the next several years. | | | | potential renters into the buyers column. According to |
| Furthermore, most new New York apartments are | | | | a recently released report on the nation's rental |
| condominiums. Unlike the old coopertively owned | | | | markets, rent prices have climbed 3.6% in the last |
| buildings that used to be about all the city had to | | | | quarter alone, a rate of growth that outpaced every |
| offer, condos are one of the most liquid investments | | | | other market the report covered. |