Real Estate Agents Misleading Foreigners On Property Purchases

Today I had a good friend of mine reach out from the Philippines. She asked me a simple question, “Which is a better place to make a real estate investment, the Bronx, or Rego Park?” The answer to that is often subjective, depending on who you ask, but my answer was actually another question. Where in the Bronx? Where in Rego Park?

My question led to further discussion, and eventually she told me that she was looking at a place in Rego Park for $800,000!

WHAT!

$800,000? For an apartment in Rego Park? Well, there is only one place that I could think of right now that would dare charge such exorbitant prices for an apartment. She didn’t have to tell me which place it was, I immediately knew.

Recently, I went to look at the building, I was curious. The cost was consistent with what she said. Furthermore, I noticed something else. The majority of the folks I spoke to from the building were foreigners. This made absolute sense to me, of course they are all foreigners! A native New Yorker would never pay OVER 3/4 of a million dollars to live in ANY building in REGO PARK! Are you freaking kidding me?

She said the real estate agent said that it’s by Macy’s, and “the” mall! He also said that it is by the E train. Well, yes, it is near a Macy’s store, but not the main one that you are being led to believe. No it is not by the E train. You take the E train to another stop, switch trains, and catch the LOCAL to the Rego Park stop. She was very surprised by all that she was learning.

I told her not to buy a damn thing without consulting me first! I am not a real estate mogul, but I found it rather frustrating that a friend of mine was almost conned into dropping $800,000 for an apartment that was probably produced for a fraction of the cost! That’s a nice chunk of change the agent would get for that sell! She would probably never get a return on her investment.

NYC is always changing, and property values can swing up or down in a heartbeat. Could Rego Park blow up and become a super rich area? Sure, is it worth gambling $800,000 on this? Hell no!

Some people have no scruples, no honor. That’s why I am writing this post! Buyer beware! Buyer Beware! Buyer Beware!