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REAL ESTATE

The status: Property values here are defying national trends—maybe even gravity. The average price for a Manhattan apartment hit $1.4 million in the last three months of ’07, a 17.6 percent increase over the same period in ’06, according to a report from Prudential Douglas Elliman. Radar Logic executive VP Jonathan Miller, who prepped the report data, says luxury buildings accounted for the biggest gains, but the overall market is up as well.

The game plan: The subprime-mortgage crisis may not have burst NYC’s real-estate bubble, but it has changed the rules on loans, says Circle Mortgage Group president Dale Siegel: “Today your credit must be better than average, you may need to put 10 percent down, and the bank will also want to make sure you can afford the payments.”

If you’re buying an investment property, you’ll need a 30 percent down payment, says Century 21 broker Stefanie Gee. Otherwise the rents you charge may not cover your monthly mortgage costs. “And stay away from co-ops, which put too many restrictions on what you can do with the apartment,” she says.

If you can’t buy actual property, you might consider a share in a real-estate investment trust (REIT), which allows multiple investors to own profit-making private or commercial real estate. But be aware of the differences between different kinds of property, cautions Investing Is Simple (investingissimple.com) chief executive Julia Posacki. “Apartment REITs may do well if people turn to renting due to high buying prices,” she says, “while office REITs suffer if companies lease less space.”

As for how long it will take for your investment to appreciate, Miller says to think long-term. But take heart—less speculation and flipping is one reason the local market is still strong.

Risk: 2 It’s a good time to buy—so buy. Reward: 8 When the subprime madness cools—and it will—you’ll be there with property to sell.