Why a Ritz-Carlton Condo Is $600K in Portland (And Why NYC Is Falling Apart)
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Welcome to another edition of Watch Dogs Lessons in Real Estate. How would you like to live? How would you like to live in a Ritz-Carlton? A Ritz-Carlton condo, brand new residences, downtown for $600,000. Oh yeah, you can. You can. I’m gonna show you how. You just gotta do this one thing.
You do one thing, you have to move to Portland. Yes, yes, I got a kick out of this. And again, this is one of the things that drives me. Berserko, stories on real estate, CNBC, other places, and they look at the United States real estate market. What? How? How do you look at the United States real estate market? We’re a big, rigging country. Huge country.
many different pockets. Portland, Oregon. Didn’t they get taken over by anti-FA like, you know, several years ago, they still got those areas in Portland there that were like no-go zones. What were they calling that area? I can’t even remember. Again, I’d love the television show prior to all this with called Portlandia showed how, you know,
keep Portland weird was an odd little place, whatever it may be, quaint, how cute, know, kind of like a mix between I guess, fish, the Grateful Dead. And so I don’t know, it’s just different. actually they had a song, they said, the dream of the 90s is alive in Portland. Anyway, yeah, they decided, I don’t know who, again, you gotta have some line of BS.
to have gotten financing for a Ritz-Carlton in downtown Portland. Yep, their condos are now being marked down by 50%. 50%, one bedroom units previously listed between 1.2 and 1.7, 600,000. Now I’ll show you the difference in real estate. You can’t buy a 100 year old
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dilapidated, run down, house, small house in Tampa, Florida for $600,000. Real estate developers, home builders actually knock on doors there, looking to buy up these old homes so they can knock them down and then build brand new homes for a million. You can’t buy, in essence, an old dilapidated shack.
in downtown Tampa for 600,000. He got Ritz Carlton residences for 600,000. Yeah, and they’re dropping. Your neighborhood matters. Here is another lesson in real estate. Again, this is what happens. This is what happens when the government gets involved in real estate and says, hey,
We’re gonna tell you Mr. Landlord how much you can charge for your rental. So let’s go to New York. Oh boy, I feel bad. I really do for the landlords and you know, it’s gonna be some rough sledding for a period of time. ma’am Donnie, goes and he does a photo op. He goes to this apartment complex owned by this group called Pinnacle Tenement in Brooklyn.
And he said he’s gonna take action to seek immediate relief and improve living conditions for tenants. You think ma’am Donnie is gonna start swinging a hammer? You think he’s gonna call, I don’t know, HGTV and get the Property Brothers in there to start fixing these places up? As it turns out, this Pinnacle Group has more than 5,000 housing violations.
14,000 complaints across 83 buildings including rodents mold broken walls and boilers Slum board right well a Pinnacle is in chapter 11 bankruptcy and listen I am I’m not sticking up for them at all Not I don’t know the ins and outs, but they’re in bankruptcy they went into bankruptcy because
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the government rent restrictions that are in place. The city has barred landlords from raising rents by more than 3 % annually. Cannot raise rents by more than 3 % annually while at the same time, the cost of running an apartment, insurance, maintenance.
utilities have gone through the roof. Now, a lot of landlords right now are losing their shirts. They’re losing their shirts, they can’t keep up. Do you think that they’re gonna be really interested in coming in and fixing places up when they are already losing money? Now, you got that.
He also had, and again, we told you the disaster, the whole COVID eviction moratorium. Yeah, that was a disaster. Government getting involved saying, no, no, no, no. What do think people did? They just stopped paying. What are you gonna do to me? He can’t evict me. What are you gonna do? Actually, it’s funny. I watched people also do that during the financial crisis.
where it took forever to evict people from homes. mean, you had rich people living on the beach in Sarasota, Florida. Screw it, we’re not gonna be able to throw me out for a couple years, what difference? Everybody else is going through the same thing. And again, I don’t know how people live with themselves and do that, but it was being done. Prior to a 2019 state law, landlords could deregulate units when tenants moved out and the rent exceeded about $2,800 a month.
They could also raise rents by up to 6 % to cover renovation costs. Now, they can’t do either. Again, and then you got, we talked about, Men Dami appointed this left-wing activist, the Sia Weaver, as the housing czar.
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Again, I don’t know, they’re gonna start seizing units, but where in the world is New York gonna come up with the money to fix these places up and do all of this?
They’re not. They’re not. Amazing, though, how the free market actually works. If New York really wanted to have more units, which can increase supply, drive prices down, you would stay out of it.
You would stay out of it. The entire thing is a big stinking rat. I know, I know people for crying out loud that are living in Park Avenue, Lexington Avenue, Upper East Side Apartments paying next to nothing. Paying next to nothing kept it in the family. I don’t even know how it’s legal that they go ahead and do that. It is what it is. Anyway, Watchdog on wallstreet.com.
