NYC – It is music to the ears to hear about how much the housing market is rising today, after the six terrible years since the recession started. But what about the areas of the housing market where a few thousand higher in price for a condo just isn’t much at all? That is, the people who represent something more akin to the .1 percent buying thirty million dollar condos over-looking central park. To these people supply and demand didn’t matter when it came to the home, nor did the price fluctuating as little as it might have.
What are these people doing? And why were these places still being bought in the times of recessions? Well it all has to do with the buyers themselves. The majority of the people buying these places, which averaged between two million and four million, are international buyers, and they were doing it as a means of investing their money, similar to a bank account. Most wealthy international people believe that the United States is a safe place to purchase real estate, even if they aren’t getting a great deal, they can often make a return off of it, or just let an asset sit without it being in a bank.
This was the case even during the recessions that America faced. Despite the low economy, America was still a place to be and all it took was renting out the million dollar condos for cheaper to pick up profit for those international buyers. But not all the buyers of these expensive places were from overseas. Instead, it was American buyers investing in the real estate because they knew eventually the market would go up, and before then they could even rent it out for a net profit.
Many American buyers saw these expensive real estate pieces as investments away from the stock market. They could put five million into a floor of homes and then rent each of those homes out for a few thousand a month and all it took was a few years to make back their money and start earning profits off of it. And that’s the truth with real estate, it’s perhaps one of the more sound investments you can make anywhere that isn’t a warzone, but for America in particular the profit is glorious, especially with the market rise.