It appears that a change is underway and that the wealthy NY buyers that acquired real estate, as means to “safely” parking their capital the credit crunch and following real estate market crashes, have begun to get hungry for greater returns. Although the first signs emerged several years ago as investors showed increased interest for risker assets, that trend has certainly continuing. However, the trend now is to seek higher returns outside of the NY market. Greater returns can be achieved in other large MSAs such as Chicago and Atlanta and NY-based investors are focusing more on these areas.
Wealthy individuals are looking for a bit of income and not just the safe haven to park their capital leading to an increase in their risk tolerance. It is important to note that it is in the location that the risk is being taken, investors still are driven towards prime real estate.
Brokers, take note, this seems to be a trend that is gaining momentum.