The Hamptons is just an exurban extension of Manhattan & not reflective of America as a whole. It is a classic East Coast hideout for the banksters, socialites, celebrities, etc. But I am trying to make sense of the other article link that you have posted.With pandemic house prices are increasing. It makes some sense. Lack of supply. Demand make prices rise. It´s too early to tell. People are holding back.
What will happen when government programs end?
Home sales dropped nearly 18% in April, while decline in inventory pushed prices to a record high
The Hamptons rental market is booming, making the ritzy area more unattainable than ever — even for 'middle-class rich people'One broker told Page Six that homeowners are "price gouging" as the Hamptons rental market enters the summer season.www.businessinsider.com
The Hamptons rental market is booming, making the ritzy area more unattainable than ever — even for 'middle-class rich people'
After seeing the post I looked up my house. Definitely got a boost, I'm on about an acre parcel with all of my neighbors on about 1/2 - 1 acre. Looks like the prices here are pretty stable.There are two sources for the decline, first, the collapse of tourism, S/T furnished rentals/Airbnb stock will get converted to long term rental and result in lower rents esp in cities like SF, NYC, Paris.
Second of course, the general economic downturn will depress prices as people can't make their mortgages have to sell their property, same dynamics as in 2008.
Furthermore, the movement towards city living away from the suburbs will reverse as Boomers now view living in places like Manhattan or Santa Monica as dangerous, and urban activities like going to the theater, crowded restaurants etc as no longer attractive. Exurbs that are rural with acreage and lower densities will get a boost.
I gave my tenant a 10% reduction in his rent. His lease was coming up for renewal, he has overall been good, a little whiny, but I don't have a ton of desire to be trying to rent it out to someone else in this market. It is a Downtown Condo in a large city.
He was planning on staying temporarily til he bought, but has been there almost a year. He is now waiting for the market to come down. He seems educated on the matter, but who knows.
I'd check the market. You might want to consider subleasing your place while you live with your parents. If he is just raising it 10% after 6 years he is a good landlord. He might be feeling the pinch on things under these times.Interesting, I just got the opposite response from my landlord. I am currently on a month to month lease as my last yearly lease has been expired for a while now. My landlord just sent me an email stating my rent was going up 10% because my unit is under the market value(which it is). He told me to give to give him an answer this week if I accept or if I want a termination. I've been with my landlord for 6 years now and no issues with him as I never complained about anything, I asked him to fix major issues which he does.
Even with my unit being under the market value I find his timing to be odd with the turmoil going on in the world and that I am a hasselfree tenant with a 6 year track record of payments on time. The issue for me is that while my unit is a extremely desirable place during normal times being near a restaurant/bar district, I have no desire to be in a area like this as it's literally useless for me with covid19 and potential riots.
I am almost certain at this point I am going to terminate the lease and temporarily move in with family because I want to see how this year plays out because there is too much turmoil and I can see prices coming down heavily and I am extremely liquid.
I'd check the market. You might want to consider subleasing your place while you live with your parents. If he is just raising it 10% after 6 years he is a good landlord. He might be feeling the pinch on things under these times.
Duplexes are a great investment. I have a residential duplex and it's been a homerun. Especially something I was told years back, buy a duplex, rent half and live in the other half. The rent pays your mortgage and a young guy doesn't need a big house. Government lease sounds like a sweet deal, I'd hold your nose, pay the renos and ride that Long term lease and forget about it. Just tell them no rainbow flags allowed, against your religion.I just bought a duplex here in Ireland against my better judgement. It's 2 x 3 bedroom houses in a main town in average condition for €70k. I can rent it out for €1500 monthly on a 20-year lease to the local government (if I put €12k into renovations). The low price was due to the seller needing cash immediately, they could have tidied it up a little and gotten way more. It's a sick deal, I couldn't help myself.
That all said, I reckon the real drop is yet to come. It might take a year for the drop to hit properly. Even conservative local think tanks are predicting 25% drop in residential real estate. So I will be hustling up as much cash as possible for an expected dip, trying to hold off even if I see a good deal come up. HODL your cash, the drop is yet to come.
If you have cash or equity, you might as well consider buying rental property. People have to live someplace, and even if your home value decreases, that means other homes decrease in price, which could offset your loss if you buy a rental property on the cheap.It looks like coronavirus is going to put the big hurt on both home sale prices and rents.
Here's a good blog that is sharing a lot of stories on the issue:Australia's rental market has been flooded with vacant properties as part of the COVID-19 pandemic, with new figures revealing more than 88,000 homes were without tenants last month.www.domain.com.au