More condo renters find neighbors in their landlords

New York /
May.May 07, 2012 09:30 AM

A new kind of real estate investor has become increasingly common as the city emerges from the depths of the recession, according to the New York Times. Apartment owners are more frequently leveraging low mortgage rates and high rental demand into purchasing other units in their building as long-term investments. With bond yields low and the stock market still uncertain, these New Yorkers buy apartments in their building and manage them closely hoping to skim modest returns for years.

It’s a stark contrast from the boom-time investors who snapped up apartments anywhere they could find them in hopes of a quick-flip profit.

“These are people who are looking for investments they can understand and somewhat control,” said Halstead Property Development Marketing President Stephen Kliegerman. “The stock market has become something that’s not for the lay person anymore. But the one-off investor understands real estate and its income streams and sees it as an asset they can manage.”

Many of these new investors, first bought into a building at the height of the market, and moved in even as the recession hit and sales slowed. They nabbed additional apartments just as a rebound appeared to be taking hold. An advantage in these buildings that catch investors’ eyes are low initial tax rates and common charges, which help ensure the owners’ costs, combined with mortgage payments, remain below the rent they charge. [NYT]


Related Articles

arrow_forward_ios
Matt Lauer exposes Hamptons estate to the market
Matt Lauer exposes Hamptons estate to the market
Matt Lauer exposes Hamptons estate to the market
 Fredrik Eklund and the property (Getty, Steve Frankel)
Fredrik Eklund lists Bel Air mansion for rent as family moves to “forever home”
Fredrik Eklund lists Bel Air mansion for rent as family moves to “forever home”
Gordon Ramsey and his Lucky Cat restaurant (Lucky Cat)
Gordon Ramsay to open first South Florida restaurant in Miami Beach
Gordon Ramsay to open first South Florida restaurant in Miami Beach
Hilton Grand CEO Mark Wang (left), 54 Madison Partners' Henry Silverman and 12 East 48th Street
Hilton Grand Vacations buys Midtown timeshares for $136M
Hilton Grand Vacations buys Midtown timeshares for $136M
A photo illustration of Mickey Drexler and 464 Greenwich Street (Getty, Google Maps)
Fashion exec’s Tribeca townhouse sells for $24M
Fashion exec’s Tribeca townhouse sells for $24M
BentallGreenOak’s Sonny Kalsi and Related’s Jeff Blau; 2100 49th Avenue and 2109 Borden Avenue in Long Island City, Queens (Google Maps), Getty, Related, BentallGreenOak)
Related to walk away from empty LIC office campus
Related to walk away from empty LIC office campus
From left: BWH Hotel Group's Larry Cuculic and Hilton's Christopher Nassetta (Getty, Notre Dame, Hilton)
Hospitality companies target rival properties
Hospitality companies target rival properties
Clockwise from bottom left: Signature Premier Properties' Peter Morris, Coldwell Banker's Sue Yannaccone, Douglas Elliman's Howard Lorber and Coach Real Estate Associates' Georgianna Finn
Ranking the brokerages that rule NYC’s suburbs
Ranking the brokerages that rule NYC’s suburbs
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...