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High-End Sales Out, Rentals In?

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What's the latest high-end real estate trend? Super-pricey rentals, of course! At least according to the New York Times, which says that it's making less and less sense for the wealthy to pour all of their capital into purchasing a residence when the money could be better spent. They cite a Streeteasy report which says "more apartments priced at $10,000 and above per month were rented this May than in the same time period last year and the year before, and those apartments went off the market faster and without price cuts. " We can't tell if it's the DSK-effect or if non-celebs are finally getting on the bandwagon. In any case, people are getting pretty sweet values. Let's take the perennial favorite $90 million mansion at 4 East 80th Street for example. It's also available for rent at a relative bargain price of $210,000/month. The mortgage payment on the place would be $408,000 per month if the buyer put 20% down with a 30-year 5.5% fixed loan. Which begs the question: who would get a mortgage on that place?
· High-Priced Rentals Are All the Rage [NYT]