One Chart Explains Why Billionaires Invest In New York Apartments

Posted by Wei Min Tan on November 14, 2017

Publication:  Business Insider


Summary:  Business Insider published Wei Min Tan’s chart that compares the performance of various asset classes such as blue chip stocks, tech stocks, U.K. stocks and gold to investing in Manhattan condominiums.  The chart explains why billionaires invest in Manhattan real estate.


Wei Min’s contribution:  In the period of analysis, the Dow increased by 8.4 percent, Nasdaq by 14.3 percent while gold was down 4.7 percent.  Meanwhile, a Manhattan apartment was up 9.9 percent.  Since most people buy property with a mortgage, when leveraged up, the return of a Manhattan condo becomes 19.8 percent.  This exceeds the performance of the other asset classes analyzed.  A key difference with property investment is that one can use leverage to magnify returns through buying with a mortgage.

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22nd floor,
New York, NY 10022

About Wei Min

  • Focuses on investors of Manhattan condominiums, interviewed by CNBC, CNN, Wall Street Journal, New York Times
  • Ex-Citibanker, managed $500 million portfolio
  • MBA, University of Illinois at Urbana-Champaign
  • Manhattan resident since 1999. Currently lives in Tribeca with wife and 2 kids
  • 352 burpees in 23 minutes, student of muay thai kickboxing

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