Empty Nest Newsletter / June 2021
"Keeping a finger on the pulse of the market."
MICHAEL SHAPOT, ESQ.
LICENSED ASSOCIATE RE BROKER
The kids are gone but life is far from over. In fact, it is just beginning. If you had imagined grabbing a boxed lunch and picnicking in Central Park, a stroll on the High Line or dining al fresco with the locals at your favorite restaurant, you're in luck. Your dream is now on sale!
Your four-times-a-year jaunt into the city can be a thing of the past. Instead of fighting traffic through the tunnel ($15, ouch) and finding that parking garage ($50, more ouch) that isn't full and won't ding the car; your new home could be a few steps or a short Uber ride away.
As NYC opens up post COVID-19, the life you envision remains a possibility. Invest in your dream today at a discount. The new exhibits at the Whitney and MOMA, shopping on Madison Ave., take your pick. And great seats to that off-Broadway play, lecture, concert and ball game are going to happen sooner than you think.
Moving into the city? Manhattan? Absolutely!
The DREAM Down-Sizer Market?
(Babyboomer Bonanza!) (Empty Nester Ecstacy!)
We are in the midst of an extreme market. Today's catch-up economy has emerged from the global COVID Recession and triggered much larger demand - fueled by lots of cheap cash. Residential real estate is just one of the industries that has been positively affected; restaurants are booming; tech is on fire; medicine is strong; Amazon and Peloton have done amazingly well.
In all markets lie opportunity, and one of the greatest opportunities is the hands of down-sizing suburban BabyBoomer-EmptyNesters. Current market conditions present a perfect confluence of events for these lucky aging adults. Here's why:
own homes much larger than their current needs.
bought their homes years ago and their mortgages may have already been paid down significantly or completely.
are adjusting or shifting their careers, either working less, retiring or changing professions.
who lived in the suburbs or in high-tax areas saw some significant devaluation prior to 2020. This has turned around dramatically over the past 15 months.
were more prone to COVID risk and did not want to sell in 2020, fearful of exposing their homes and themselves to the virus. Some felt selling during a pandemic would deliver less than optimum results. This perception and reality have changed in our post-vaccine world.
hold a big chunk of their assets and retirement savings in their homes. Diversifying and liquifying now may make sense.
have the potential for large capital gains on homes they've owned for a long time. If (and when!) these rates change, they may net less for retirement.
homes that have been owned for a long time may have deferred maintenance needs requiring renovation and repairs. Real estate taxes, HOA fees, insurance costs and the like tend to be high.
may be compelled to sell. There may be physical changes that make navigating stairs a challenge, for example. Or they may want to be closer to health-related amenities and services, or to their grown children and grandchildren. It is wise to anticipate these needs early and proactively, and move before moving becomes even more of a physical challenge.
are simply ready for a 'next chapter'. Being mentally stimulated and making changes is a key to healthy longevity.
who move into more urban areas may be able to take advantage of COVID urban discounts before they disappear. Even in urban areas that haven't experienced price drops, it is safe to generalize that urban prices haven't appreciated nearly as sharply as suburban prices.
Demand for suburban homes is currently through the roof. But no market where over-bidding and multiple bidding is rampant lasts forever. Super-low interest rates don't last forever either, especially in inflationary times. Office workers may not be able to work remotely forever. Now is the time to leverage the suburban home price spikes by downsizing. Let's assume , for example, that the market is up 20%...... the $3 million home in 2019 is worth $3.6 million today. Conversely, the smaller $1 million replacement home is worth $1.2 million today. The net gain is obvious. The DREAM Down-Sizer Market, the BabyBoomer Real Estate Bonanza and the Empty Nester Ecstasy, is today's real estate market reality. Carpe diem! Take advantage!
In this month's newsletter
The Dream Down-Sizer Market for BabyBoomers & EmptyNesters
On Neflix - "Lupin" (Season 2)
Books - New Thriller by Stacey Adams, "While Justice Sleeps"
50 Best Restaurants In NYC - Right Now
My Crystal Ball - Michael's thoughts on the real estate market
Regaining Physical Flexibility
Featured Property - 150 West 79th Street Apt 1A
On Netflix -- LUPIN (Season 2)
The story follows professional thief Assane Diop, the only son of an immigrant from Senegal who had come to France to seek a better life for his child. Assane's father is framed for the theft of an expensive diamond necklace by his employer, the wealthy and powerful Hubert Pellegrini, and hangs himself in his prison cell out of shame, leaving the teenage Assane an orphan. Twenty-five years later, inspired by a book about gentleman thief Arsène Lupin his father had given him on his birthday, Assane sets out to get revenge on the Pellegrini family, using his charisma and mastery of thievery, subterfuge, and disguise to expose Hubert's crime.
If you haven't seen the first season, race to see it. Oh, and watch the original language version with English subtitles. The dubbing leaves much to be desired.
Yes... That Stacey Abrams
"While Justice Sleeps"
"One approaches a legal thriller rooted in high-stakes Washington politics with a certain trepidation — and a curiosity deepened, in this case, by Stacey Abrams’s chosen setting: the U.S. Supreme Court.
Questions proliferate. Will there be actual Republicans and Democrats? Will the politics feel authentic — as they did, for example, in Allen Drury’s Pulitzer Prize-winning epic from the 1950s, “Advise and Consent”?
50 Best Restaurants in NYC, Right Now
May 2021: New York City is NOW reopening. The CDC says that fully vaccinated people can lower their masks (even if the state of New York is recommending that we wear them a little longer) and restaurant capacity restrictions have been lifted as of May 19. We should still be mindful of the people around us, whether dining inside or out, and with so many service workers on the frontlines, we hope you’ll be gracious and tip kindly.
My Crystal Ball
If I could look into the future with complete clarity, I'd be choosing the right stocks and picking the winning lottery numbers. I could make a great living as a weatherman and kill it at the track picking the ponies. My predictions about Manhattan's residential real estate market are educated guesses based on my analysis of yesterday's data and my perception of today's market energy. The strong data and positive energy I feel in the market translate into cautious but calculated optimism about tomorrow's trends. In this month's blog, I'll share my insights so you understand my confidence.
No matter our age, we all want to be flexible!
Flexibility is an essential component of good health and fitness and is especially vital for seniors. I don’t mean the kind of flexibility of being able to do the splits or turning oneself into a human-like-pretzel. I mean the type of flexibility of being unrestricted in your movements. Being able to move all your joints fluidly and getting about with ease in your daily life. All without feeling any painful niggles that come with tight muscles and stiff joints.
Featured Property - The Perfect Pied-a-terre?
150 West 79th Street Apt. 1A
Welcome to Unit 1A at 150 West 79th! This surprisingly quiet and spacious one bedroom home is located in the heart of the Upper West Side, in close proximity to Central Park and the Museum of Natural History. It boasts character galore and old world, Upper West Side "soul". The oversized windows offer abundant natural light and a charming view onto the street. Imagine waking up in the vast and relaxing bedroom (with plenty of storage space), letting your cooking skills shine in the updated (and windowed) kitchen with plenty of counter space, and entertaining comfortably in the large living room and separate dining foyer. And Rover or Fifi will love the elevated first-floor location off the lobby – no waiting for the elevator for those last-minute emergency walks!
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MICHAEL SHAPOT, ESQ.
LICENSED ASSOCIATE RE BROKER
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