According to Chad Roffers, Concierge Auctions client services professional, luxury real estate in the New York area always shifts toward available properties in the Hamptons come summer time. Although spending the summer in the Hamptons has remained a popular trend among the wealthy for years, Roffers notes that every year the impressive rental prices spur interest in luxury real estate. Roffers states, “If you own property in the Hamptons, the rental rates posed for summer tenants is always exciting. As a result, many wealth investors start to get interested in purchasing available properties for the next summer season—in hopes to get a consistent solid return on that investment.”
As a trusted provider of luxury real estate auctions in the New York Area, Concierge Auctions notes that homes in the Hamptons always draw intense interest from buyers. Roffers states, “Despite the economic downturn in America, wealthy citizens continue to put a high value on vacation, which means they are willing to spend a lot to be entertained and live in comfort. The Hamptons will always be a center of interest for wealthy vacationers—as properties in this location are great for entertaining, great for cooling down and great for escaping the demands of daily life. It’s hard to put a price on that.”
A recent article from Hamptons.com, however, does reveal what kind of price people are putting on rentals alone in the Hamptons this 2013 summer season. The article states, “Not ready to buy a multi-million dollar mansion in the Hamptons just yet? This summer, some Hamptons residents are renting out their houses for an astounding one million. According to Catherine Andrusenko, a real estate agent at Keller Williams Reality in New York City, rentals are on the market for $100,000 to $200,000 per month. She holds million dollar listings but has not had any clientele who have rented out their homes for the entire summer for a million dollars.”
But what kinds of consumers are willing to put out that much money to rent these properties? According to the article, the rentals have proven popular among a wide variety of tenants, ranging from financial professionals in New York City to wealthy European vacationers. Although the high prices in rentals may attract wealthy investors to immediately jump into purchasing a luxury piece of real estate in the Hamptons, Chad Roffers, Concierge Auctions professional, explains that there is a value to renting these properties before trying to become an actual owner.
“These properties are very, very heavy assets, so offering a million dollars for a summer rental in the Hamptons may prove a worthy investment before committing to an actual purchase. For instance, European vacationers who may not prove that familiar with ‘summer in the Hamptons’ may want to first see what the lifestyle and culture is like before offering even more money to own a property outright. Renting, although expensive, is a great way to try before you buy in the Hamptons,” Chad Roffers observes.
Although many may feel that the opportunity to arrange for rental in the Hamptons this summer disappeared with the Memorial Day holiday, Hamptons.com reveals that there are still quite a few available properties. The article states, “Currently there are approximately 2,500 houses in the Hamptons on the rental market. THIS IS CONFUSING – IS IT NECESSARY?This pool includes active and inactive houses, meaning that some of those houses have already been rented or are simply not available for this summer. The inactive portion accounts for about 1,400 houses. Of those homes, one has to be careful when they are looking at real estate websites because even some of those are unavailable.”
However, Chad Roffers, Concierge Auctions client services professional, explains that million-dollar rentals are only a section of these available properties. He states, “There is a great interest in luxury real estate at the moment, which is why tenants are willing to spend more than a million dollars for a high-end vacation rental this summer. However, there are less expensive opportunities to rent in the area if you are still interested in checking out what ‘lower-end’ properties are like in the Hamptons.”
Another recent article from The New York Post observes other rental trends in the Hamptons, noting that as the summer season comes closer, the rates offered between landlords and prospective tenants can change drastically. However, the article explains that there are properties available for less than the one-million-dollar mark highlighted by Hamptons.com. In the article, Enzo Morabito—a broker at Douglas Elliman—notes that there is a great inventory of rentals that are $350,000 and above. However, the article also observes, “According to Morabito, one can still get an inexpensive rental (below $75,000 for the season), or a really, really high-end rental (more than $350,000). It’s whatever’s in between that’s a bit of a question mark.”
“If you want to get a taste of luxury real estate in the Hamptons, you would be wise to arrange for a rental as soon as possible, as availability drops steeply after Memorial Day. After this holiday, landlords are prone to increase rates significantly. While this trend may be a disappointment to hopeful renters, it can prove an enticing reason to purchase in the area if an opportunity to buy arises,” Chad Roffers, Concierge Auctions professional concludes.
Chad Roffers, Concierge Auctions head of client services, provides the support necessary for individuals to successfully complete the luxury real estate auction process. By lending his insight to both buyers and sellers, Roffers is able to provide the highest quality auction experience to individuals involved in multi-million dollar real estate transactions. A member of the National Auctioneer Association and the National Association of Realtors, Roffers has extensive experience in the real estate industry and is capable of providing a high degree of skill to each and every auction that is held. When not working, Roffers supports St. Jude’s Children’s Hospital, Take Stock in Children, and Junior Achievement. Additionally, he is a marathon runner who has completed the New York marathon, is an avid traveler, and enjoys sailing and boating.