Dear Renters of NYC – please read this from Wall Street Journal:

At least three major Manhattan landlords have decided to stop paying broker’s fees on some rental properties, signaling that many tenants need to brace themselves for extra expenses when apartment shopping.

This is a shift from last year, when landlords—desperate to fill empty units—would cover the broker’s fee, typically a month’s rent.

But with demand for rentals rising and vacancy rates falling, some of the city’s biggest landlords have notified brokers that they will no longer pick up the fee. That, of course, means renters must pay up.

“The pendulum is swinging back to a landlord’s market,” said Gary Malin, president of brokerage Citi Habitats. “Owners are going to do what’s in their power to stop overpaying, in their eyes, to attract clientele.”

In a recent email, Ogden CAP Properties LLC said it won’t pay fees at several properties, including Normandie Court on East 95th Street and One Lincoln Plaza on West 64th Street. It declined to comment.

Pan Am Equities Inc., another large apartment owner, intends to stop paying the fee on June 1, according to brokers. Pan Am declined to comment.

The rental unit of Related Cos., which has about 5,000 units across Manhattan, will stop paying the fee May 31. “There has been a serious uptick in the market. We have seen across-the-board a strengthening in the marketplace,” said Daria Salusbury, a Related senior vice president. Related’s vacancy of less than 1%—down from about 3.5% a year ago—”is better than projected,” she said.

Vacancies are low across Manhattan, which is in its peak leasing season.

April’s rate came in at 1.23%, the lowest since June 2008, according to Citi Habitats. That was down from 1.38% in March and 2.28% a year ago. The average rent for studios and one-bedrooms – which make up most local rental stock – rose 2% from March to $1,799 and $2,390, respectively. Studio rents haven’t been this high since December, 2008. Two bedrooms saw a slight rise to $3,299, from $3,289. Related is modestly increasing monthly rent in Chelsea and downtown, Ms. Salusbury said.

AvalonBay Communities Inc. in most cases is no longer paying the fee for leases in its seven New York City communities—including four in Manhattan.

The company, with 6,900 apartments in New York and New Jersey, says the Big Apple’s improvement is being felt in suburban markets: Many of its communities in New Jersey, Westchester County and Long Island, typically not big broker fee markets, have seen rental increases in recent months.

“Regionwide, market conditions have improved over a year ago,” said John Christie, senior director of investor relations and research.

To be sure, some local landlords continue to cough up the fee. The LeFrak Organization, which owns about 2,500 Manhattan rentals, pays the broker fee in buildings with several units available or with larger apartments, which rent for more and can take longer to fill.

Still, LeFrak’s occupancy is about 99% currently, meaning it’s unlikely to have to pay out much in broker fees.

“The fee is something that comes and goes based on supply and demand,” said Jamie LeFrak, a company principal. “If it makes reasonable sense to pay brokerage commissions, we’d always prefer not to cut out the broker. Keep the brokers happy because that’s who brings you customers.”

Not surprisingly there’s some consumer resistance to renters having to pay the broker fee. Some prospective tenants won’t look at properties if they are responsible for the fee.

http://online.wsj.com/article/SB10001424052748704113504575264863146900120.html?mod=WSJ_hpp_MIDDLENexttoWhatsNewsForth

In case you have not heard:

Vacancy rates at rental apartments in Manhattan continued to decline in April, encouraging landlords to begin pulling back on tenant concessions, according to the latest monthly data by residential brokerage Citi Habitats.

The residential rental market has been improving since November, when vacancy rates began to decline. Last month, the vacancy rate hit 1.23%, down from 1.38% in March, according to the city’s largest rental brokerage.

“We are just unbelievably busy. Transaction volume is strong,” said Gary Malin, president of Citi Habitats, which rented more than 1,150 apartments in April, up a whopping 21% from the previous month. “Now that the market has been absorbing apartments, landlords are removing incentives.”

The first of those tenant concessions that are going by the boards is months of free rent. The good news, though, is that landlords are still paying for broker commissions, Mr. Malin said.

“Landlords are gradually taking away incentives to avoid tenant shock,” he added.

In another sign that the market is improving, landlords are standing firm on asking rents. In fact, average rents began to increase at the beginning of this year when one-bedroom apartment rents rose 1% in January from the previous month. In February, average apartment rents were up from the previous month for studios and two-bedrooms as well. That trend continued last month; average rent for studios was $1,799 and rent for one-bedrooms was $2,299, each up 2% from March. There was no change for two-and three-bedroom apartments.

In some pockets of Manhattan, however, tenants still hold the upper hand and can negotiate rents. In less-desirable neighborhoods, such as east of Third Avenue, which is farther from the subway, landlords are likely to be more flexible, according to Mr. Malin. These Manhattan areas are taking longer to recover in terms of rents, he added. In April, the Upper East Side and Midtown East recorded the highest vacancy rates in the city with 1.59% and 1.70%, respectively.

In more desirable neighborhoods like the West Village, Mr. Malin said he is seeing heated competition for apartments. In some cases, tenants are agreeing to pay $25 to $55 more a month to get an apartment.

http://www.crainsnewyork.com/article/20100521/REAL_ESTATE/100529961

1) East Village has the highest Vacancy Rate downtown.

2) Average 1bed in Doorman building now below $2,962!

JoeDNYC

2010 Quality of Life Index: 194 Countries Ranked and Rated to Reveal the Best Places to Live

By the Staff of International Living

1. France

For the fifth year running, France takes first in our annual Quality of Life Index. No surprise. Its tiresome bureaucracy and high taxes are outweighed by an unsurpassable quality of life, including the world’s best health care.

France always nets high scores in most categories. But you don’t need number-crunchers to tell you its bon vivant lifestyle is special. Step off a plane and you’ll experience it first-hand.

I always wish quality of life indicators could measure a country’s heart and soul. But it’s impossible to enumerate the joy of lingering for hours over dinner and a bottle of red wine in a Parisian brasserie. Or strolling beside the Seine on a spring morning, poking through the book vendors’ wares. Or buying buttery croissants in bohemian Montmartre…hearing Notre Dame’s bells…walking antique streets paved with poetry.

Romantic Paris offers the best of everything, but services don’t fall away in Alsace’s wine villages…in wild and lovely Corsica…in lavender-scented Provence. Or in the Languedoc of the troubadors, bathed in Mediterranean sunlight.

Provincial French properties are often keenly priced and lifestyles are less expensive than Paris. The Southwestern Midi-Pyrenees region is a particularly good hunting ground for village homes for less than $100,000—and classic three-course lunches for $14. Houses cascade with wisteria blossom; outdoor markets are everywhere. Foie gras, pink garlic, Armagnac, and crystallized violets aren’t gourmet fare for locals. Rather, just another day’s shopping.

2. Australia

They don’t call it the “Lucky Country” for nothing. Australia is famous for its large beaches and temperate climate. Across the continent, Aussies and those who’ve chosen to emigrate there have access to an active and healthy lifestyle. But urban dwellers will find plenty of great culture and excellent food in Sydney and Melbourne, and a cost of living below that of some of the world’s other great cities.

Australia’s economy has managed to weather the Global Financial Crisis better than any other Western country. For tourists and travelers, this means you’ll be dealing with a strong Aussie dollar, making your visit there more expensive. But if you plan to stay, you’ll find that few English-speaking countries with quality health care and good infrastructure will benefit as much as Australia from the economic booms in Asia and China.

The Australian economy is powered by agricultural, mineral, and energy exports that feed the voracious appetite of rapidly industrializing populations in Asia. Housing in Australia remains expensive by global standards. But there are plenty of jobs for skilled expats who can ride the Asian boom from the sandy, sunny, and safe beaches of the land Down Under.

3. Switzerland

For Harry Lime, in Graham Greene’s story The Third Man, all the Swiss have to show for five centuries of peaceful neutrality is the cuckoo clock. The rest of Europe, meanwhile, stumped on through rivers of blood to create art, history, and civilization.
                  
This is rubbish. Switzerland is an award-winning country because it turned all its natural disadvantages to its own advantage, ending up as a super-efficient, high-tech society while still managing to play Alpine inn-keeper to the world. Moreover the cuckoo clock comes from the Black Forest in Germany.
               
Lacking natural frontiers or a unifying religion, and divided by five different languages, it sensibly decided that internationalism was its calling, quickly adding English to the French, German (two kinds), Italian, and Romansch (like ancient Latin) its people already speak so that foreigners of every linguistic persuasion could feel at home. Altruism followed from this and Geneva became home to the United Nations and the Red Cross.
              
Landlocked, mountainous, and without natural resources (except cheese), Switzerland still needed more than tourism to provide a living. So it developed secretive banks, whose potential clientele is numberless and efficient engineering and pharmaceutical industries whose appeal similarly knows no borders.
                
Such achievements reinforce each other. Tourists gladly clamber into Alpine cable cars because they trust their Swiss steel cables and electric motors. Jump on a Swiss train and you know you will arrive on time. Swallow a Swiss pill and you know it won’t poison you. Likewise, you know the bank will always be discreet and the hotel room spotless. You also know everyone will speak your language. The Swiss succeeded because they made everything work.

4. Germany

Some Americans (often ex-military) retire to Germany. One forum poster mentioned being thrilled that youth culture hasn’t taken over. Techno-throb Berlin and numerous summer rock festivals refute that, but this is the land of Goethe and Beethoven. Theater, art, and classical music concerts aren’t considered elitist.

Will your medical insurance fund a health spa stay? Probably not, but it happens here with a doctor’s recommendation. Despite the global downturn, Germans have it pretty good. Along with 30 days paid annual holiday, the average employee earns €41,509 ($61,433).

In Germany, everything works and works well. Its houses are built to last, and their legendary autobahns are still mostly without speed limits. If you enjoy sports, even small towns have numerous facilities. Some odd ones too—the Harz Mountains now has a specialist hiking trail for nudists. From spas to parks to North Sea beaches, Germany is arguably the world’s most naturist-friendly country.

Romantics adore its Christmas markets and fairytale towns of half-timbered houses. Some favorites are Quedlinburg and Wernigerode in Saxony, and the Black Forest spa town of Baden-Baden. The latter has a posh reputation, but you could buy a 55-sqaure-meter apartment for $160,000. Or rent for $673 monthly.

5. New Zealand

From Auckland’s waterfront to the Southern Alps, English-speaking New Zealand boasts some of the most pristine landscapes on earth. Much of the Lord of the Rings movie trilogy was filmed here. For younger migrants with the right skills, it’s a wonderful place to relocate and raise a family. There’s huge emphasis on sports, beach-life, and healthy lifestyles.

New Zealand’s immigration department sums up the attractions perfectly. “In many ways it’s not what we have that’s important to our quality of life—it’s what we don’t have. We don’t have high crime rates, our police don’t carry guns and instances of corruption are virtually unheard of. We don’t have abject poverty or hunger and we don’t have the pollution, congestion, health issues and cramped city living that we see elsewhere.”

Unless you buy your way in as an investor, it’s difficult for retirees to get permanent residency. But you could rent or purchase a home and live there part-time. Seasons are reversed, so it’s possible to enjoy two summers a year. However, property prices are rebounding. Taken nationally, latest figures show the average home costs $274,881.

6. Luxembourg

If we judged quality of life by a nation’s Michelin-starred restaurants per square mile, the winner would be the Grand Duchy of Luxembourg. A founder member of the EU, its national motto is Mir wëlle bleiwe wat mir sin (we want to remain what we are).

Only 51 miles long and 35 miles wide, landlocked Luxembourg is relatively unknown to Americans. Yet with per capita GDP of $88,000, it’s among the world’s richest countries. Most apartments in its postcard-pretty capital—also called Luxembourg—cost at least $7,400 per square meter. But they come with an operetta scene of medieval turrets, bridges, and flower-filled squares.

Ruled by a Grand Duke, a third of Luxembourg’s 420,000 inhabitants were born elsewhere. Add cross-border workers, and foreigners account for 60% of its labor force. Although the official language is Lëtzebuergesch, English, French, and standard German are widely spoken—cosmopolitan Luxembourg is an international finance center and tax haven. However, its bank secrecy laws are now under scrutiny.

7. United States

From Florida’s palm-lined coasts to Alaska’s snow-covered crags…from the dazzle of New York to the big skies of Montana…the U.S. has, arguably, something to offer everyone.

And no question: It is the land of convenience. No place else on Earth is it easier to get what you want, when you want it.

The U.S. is safe. It’s comfortable. It can even be affordable. As readers will on occasion point out: It’s possible to rent a place in central Nebraska for the same price you’ll pay in Merida, Mexico. (Though that does beg the question: There amid the cornfields, can you see the opera, enjoy the café culture, or be at the beach in half an hour?)

It’s hard to beat the day-to-day ease you enjoy in the U.S. You can buy eye drops at a pharmacy at 3 a.m. and have dinner delivered to your door in 30 minutes or less. We are efficient. (And, if you’ve ever tried to shop on a Sunday in France or get a driver’s license in Italy in under 45 days, you appreciate the merits in that.) But—as our editors and readers living overseas are quick to point out—convenience (and the frenetic pace that comes with it) is often overrated.

8. Belgium

Divided into Flemish-speaking Flanders and French-speaking Wallonia, Belgium also boasts high scores. Since medieval times, its merchant cities have prospered. The capital, Brussels, grabs most attention, but Bruges and Antwerp (famed for diamond trading) also flaunt stepped-gable houses and splendid guildhalls. 

Employing thousands of foreign staff, Brussels is the headquarters of the European Union and NATO. A dreary place of paper-shuffling bureaucrats? Not at all.

Ringed with parks, it’s Europe’s greenest capital. Along with many international schools, it delivers all an expat could desire: theater, English-language cinema, sports centers, great public transport, Trappist-brewed beers, numerous gourmet and ethnic restaurants, and fast trains to London, Paris, and Amsterdam. As they rarely plan to stay, most expats rent. In central Brussels, one-bedroom apartments start at $740 monthly.

Like its delectable chocolates, Brussels has a soft-centered heart. The municipality not only sterilizes stray cats, it appoints someone to feed them. Its main library offers storytelling in sign language for deaf children. And disadvantaged citizens can attend cultural events at hefty discounts.

9. Canada

Stretching from the islands of Newfoundland and Nova Scotia in the east to Vancouver Island in the west and north to the Arctic Circle, Canada is a diverse country of incredible natural beauty and resources.

Health care and living standards are among the highest in the world. Canada’s economy is based on vast natural resources, a robust financial industry, and innovative manufacturing including the renewable energy sector. Canada has remained resilient through the global financial crises. The banks are considered “more Swiss than the Swiss banks,” and property markets are “on fire.”

Canada’s major cities (like Toronto and Vancouver) offer fantastic entertainment. Sports, theater, and concerts are widely accessible and affordable and there’s a rich offering of free festivals.

Cost of living is affordable, although the strong currency has made it relatively more expensive in recent times. Canada’s real attraction comes in the form of nature and outdoor activities. In summer, there’s hiking, boating, golf, and fishing. Winter offers outdoor activities like skiing, snow mobiling, and ice fishing. Canadians are warm, welcoming, and fun, and the country still retains many of the charms brought by her early visitors from Europe.

10. Italy

What Italians don’t know about la dolce vita (the sweet life) isn’t worth knowing.

OK, trains are often in ritardo (late), workers frequently strike, corruption isn’t unknown, and red tape comes in slow-moving triplicate. But balance that against Rome, Venice, and Florence…against mountains reflected in sapphire lakes…against golden beaches and hill towns cobbled with secrets.

Then throw in 60% of the world’s art treasures. A national health care system rated second in the world by the WHO. Sunflowers, vineyards, and opera. And the best espresso, pizza, and ice cream you’ll ever taste.

Admittedly, major cities and tourist hotspots are expensive. But the Mezzogiorno, Italy’s deep south, is different. Although unemployment is high and incomes far less than in the north, it’s just as colorful. As historic, too. Phoenicians, Greeks, and Saracens all left traces of their passing.

Southern winters are short and mild, summers are scorching hot, and jugs of wine cost $6.50. On Sicily and in slow-paced regions like Puglia, Basilicata, and Campania, affordable homes abound. Even farmhouses with a couple of acres surface for $60,000. Many village houses cost even less. Decent rentals start at $550 monthly.

http://internationalliving.com/Internal-Components/Further-Resources/quality-of-life-2010

It just goes to show you, not even the president is immune to the real-estate slump.

As analysts slice, dice, mince and wedge the president’s first year in office, Zillow.com decided to take a look at his property’s performance, and found that the value of 1600 Pennsylvania Avenue has dropped by $15.6 million, or 5.1 percent in the past year.

The 132-room, 55,000-square foot home, which includes an underground bunker, was recently valued at $292.5 million, down from $308.1 million a year ago and $331.8 million in 2008, Zillow reports. (View the Zillow listing.)

That’s despite improvements the Obamas made in the past year, such as adding a vegetable garden and a fancy swing set — not to mention all the celebrities who’ve graced its halls, including Microsoft  chief Bill Gates, Goldman Sachs  honcho Lloyd “I’m doing God’s work” Blankfein, and her O-ness, Oprah Winfrey.

Now before you go blaming Obama’s health-care reform plan or his crackdown on Wall Street bonuses for the declining value, consider that the Zillow home-value index, which measures the value of homes across the nation, was also down 5 percent in the past year.

And, it’s an improvement from when the home’s value dropped more than 7 percent during the prior year—while a certain Texan with very different politics resided there.

Still, it’s tough to cope with declining real-estate values. Do you think Obama’s contacted his bank about refinancing?!

By: Cindy Perman
Writer http://www.cnbc.com/id/34956652