Posted by Leonard Steinberg on May 8th 2013

Many of the very successful new buildings being sold right now in New York can attribute a chunk of their success to investor buyers: these are the buyers who plan to either re-sell or rent the units they are buying upon completion of these building which should be anywhere from 12 to 36 months from now. Many of these apartments are very high end and will command rental rates in the teens, 20’s and 30’s monthly: will there be enough renters for all this super high end rental inventory coming to New York?

Now that the consumer is more focused on ownership than renting, will the pool of very high end renters shrink? Does the sound of make-a-quick-buck by buying and selling or renting in a new building sound eerily familiar?

Should buyers of high end real estate be concerned about the volume of investor buyers when buying in a new building? As I complete the sales process for 150 CHARLES STREET with my colleagues Darren and Raphael, I am amazed at the super-low volume of investor buyers in the building…..but I fear we may be the exception to the rule.