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Michael Chad…, Real Estate Pro in New York, NY

With such a shortage of affordable housing, do you see any foreign investors taking advantage of this trend by investing in real estate for students?

Asked by Michael Chadwick, New York, NY Sat Jun 30, 2012

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There are university towns in the USA where investors from all over the world buy to rent, but usually the target market is new faculty and staff, not students.

It's not unusual for some, not all, landlords to prohibit students (at least undergrads) from renting their apartments because of hard partying and poor rent payment habits.

To my knowledge most of this investment is outside of the NYC metropolitan area. New investment in NYC has cap rates from 1% to, rarely, 6%, elsewhere 6%+ or more can be obtained by careful investors.

Karla Harby
Licensed Real Estate Salesperson
Rutenberg Realty
New York, NY
kharby@crrnyc.com
212-688-1000x146
0 votes Thank Flag Link Sun Jul 1, 2012
Yes, I have seen an uptick in foreign investors since January - buying for their children who are going to be in the city the next 3-4 years studying. Which in my opinion is a very smart move. Either buy or burn money on renting!

Part of this is to do with the rental market seeing year on year increase by as much as 20% in some neighborhoods and also to do with the now very much stabilized sales market. Biggest problem right now, is limited inventory and not having enough quality inventory to show.

Having said that, there are some great apartments to still be had, especially with many new constructions and developments popping up all over the city!
0 votes Thank Flag Link Thu Jul 5, 2012
Shortage??? my friend in this economy there is more affordable housing available than in the last 50yrs.
Kansas
Real Estate Investor
0 votes Thank Flag Link Sat Jun 30, 2012
That may be true in Kansas, but it's a completely different markeplace in NYC where the average apartment rental is now roughly $3,500 per month. With the vacancy rate at less than 1%, the cry for affordable housing continues to be at the cruxe of residents here, and there remains such incredible opportunity for investment- both in new housing and in commercial development surrounding new apartment buildings. The only way for prices to come down is to increase the supply. Everything rents. Here's a recent article in the NY Times that has more information about whats' going on here. http://www.nytimes.com/2012/04/22/realestate/manhattan-the-city-of-sky-high-rent.html?pagewanted=all .
Flag Sat Jun 30, 2012
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