Bonuses Trumping Interest Rates in NY Market
The NY Post concludes a brief article about interest rates’ upward trend and the possible impact on an already-softening market with this almost-throw-away comment: Regardless of what happens, Manhattan real estate might be less dependent on interest rates than the rest of the country, thanks to year-end Wall Street bonuses. So don’t count on the…
The NY Post concludes a brief article about interest rates’ upward trend and the possible impact on an already-softening market with this almost-throw-away comment:
Regardless of what happens, Manhattan real estate might be less dependent on interest rates than the rest of the country, thanks to year-end Wall Street bonuses. So don’t count on the boom ending just yet.
At this point in Brooklyn’s evolution, we’d argue that the brownstone market is also quite tethered to Wall Street’s fortunes, although most of the bankers we know are pretty much limited to Brooklyn Heights and Cobble Hill. The trickle-down effect alone should make everyone in the Brooklyn market keep a close eye on what happens on Wall Street over the next month. If Goldman Sachs is any kind of an indicator, a few measly fed fund increases won’t get between the newly-moneyed and their castles.
Taking an Interest [NY Post]
Another comment: For every trader, every I banker, very private equity guy and so on, I guess there are 10x more people in technology, middle office, treasury, risk management, ops and so on.
Wall Street pays well – no doubt about but it and nothing to complain at all – but at the same time it is like pyramid scheme heavily tilted to the top…
Questions for brownstoner/Under the counter:
1.) Everbody focuses on the top earners on Wall Street, but how many make over 500k a year, how many over 1m?
2.) How many of the middle-tier bankers 250-500k copm guys actually live in Manhattan/Brooklyn. How much many will actually end up commuting from Westchester, CT, NJ?
My observations: I am working on Wall Street within Quantitative Research. We earn quite well, but the 500k bonus is a rarirty here. Almost everbody here lives outside of Manhattan except new joiners, who live in a studios….
Its sad to listen to people carp about this being the top of the market blah blah blah. Actually, they have gotten quite good at the rant given that they’ve been singing it while crying in their beer for 10 years. Lets stop with the envy and bitterness already folks. The idea of this blog is to celebrate Brooklyn’s beautiful and historic brownstones and neighborhoods, not whine about the fact that you keep on misjudging this market.
I don’t think there are guys renting now who are expecting $5 million bonuses and waiting for a family home – that’s an unlikely scenario. Maybe the wives want a 6000 sq. foot home instead of the 4500 sq. ft. box they own now. But these dudes are not renting.
I work on Wall St. I don’t know anyone over 25 yo who rents and everyone on my floor seems to trade up every 3 years, market be damned. Dude, it’s not about value, it’s about the bling. Have you seen the cars we never drive?
A lot of guys who have been sitting on the sidelines renting and putting off their wive’s repeated requests to buy a home for their family is going to have a hard time keeping peace at home when he gets $5 million check and won’t mocve the family out of the rental.
This is hardly a statistically adequate sample, but most of my colleagues in the investment bank in which I work are not planning on buying top of the market real estate. In fact, people here who snapped up distressed real estate in the early 1990s bust are counting on stretched-to-the-max owners to default, sorry to say.
I agree. Wall Streeters have their fingers on the pulse. It remains to be seen whether they think the real estate market is the right place for their money.
Everyone always says this but I refuse to believe it – aren’t Wall Street folk smarter than to buy something in a super heated and seemingly unstable market? Aren’t they rich because they don’t make stupid decisions? And besides, don’t a lot of them already own? I don’t think we’ll see a massive buying surge because of bonuses – houses aren’t the only things people buy, although you’d be hard pressed to believe otherwise thanks to the insanity of the last few years.