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Why Are the Rich Renting?

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    The Wall Street Journal’s Candice Jackson on trends in high-end renting.

  • Duration 3:50
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-- what sort of -- is a weak economy and socialist even the rich off renting.

Property house.

This -- wrote about this in the Wall Street Journal and she joins us now.

I've read your article and you start off with a friend of this program Don Peebles that's right very wealthy -- And he's renting.

Place in -- Manhattan for 35000.

Dollars a month he's renting and not buying.

Now while rich people renting and not -- There's a variety of reasons I mean in some ways the calculus is similar for regular people right if you're just living somewhere for two or three years might not be worth it to by others still see a lot of funds.

You know instability in the markets southern nervous to buy even though they could afford to buy whatever they want and they may be.

You know.

-- is that actually some people very very rich people actually all worried about another downturn in housing.

Perhaps some another downturn but they're worried they're not going to get the return on their investments -- the other factor is that markets are doing well these days so you know.

Folks like young people's or other wealthy people who could afford to invest a lot in the stock market or elsewhere it within their own businesses are choosing to do that instead of putting the bulk of their -- analyst -- up and try to read between the lines.

Are you saying -- -- peoples of this -- people like that are saying I'm gonna get a better rate of return in the stock market than I am in the high end the property market.

That's definitely a lot of people are saying that -- it's at the and that's what a lot of people I -- to -- or that they get a better investment in you know putting the money back into their own business today.

-- -- Charles Payne.

That -- exactly that he's gonna say I say that the best investment in America today is a single family home and good neighborhood not a penthouse for 50000 -- a -- the single family good neighborhood.

Charles has been disagreeing with me saying no stocks I'll -- It's a great investment I think every once -- struggled to hold but I just think that this level stock's -- Well and it's also if you're investing if you're buying a home for just a few years are you going to get a return on your investment.

Probably not we're not in that bubble era where you're getting 20% year you know so it's.

You've talked to the very rich people I mean people with you know fifty -- hundred million dollars -- of capital behind them.

Or more -- -- home -- are a billion plus in many cases throughout and you know what I think there's a lot of these folks a home many homes so they might have 34 or five houses.

So they can really choose market to market where they see it's worth it to to make that investment act maybe they rent in New York but.

But -- in Miami it would still plugged into the mega rich don't want.

I'm curious about the flexibility.

Element to this and turns up.

-- uncertainty in the rest of the economy's so Texas might be going up in New York City up in New York state.

California Illinois a lot of people want the flexibility to say I don't own this property actually move at any time -- can move in six months.

And be able to just pull up stakes and -- That's a huge part of at an in the same way it would be for middle class person right that's the benefit of renting is that -- super flexible you can pull up and now you can.

You've got that money freed up to do something else went so that's that's a big it's evident a lot of the wealthier kind of the global -- -- -- -- -- What percentage those who pay ideas -- like that I because you know you should help basilica rent that house and -- Hamptons were million dollars for a couple months in the summer -- I get the Robb report now that I've -- the you can rent a yacht for 200000 dollars for -- -- just I data like that.

Yeah you can't I mean it's it's a trophy you know used to be kind of the tropea state announced the trophy -- so if you could this is another -- you can have I'm paying 500000 dollars a month for this.

You know crazy penthouse on Central Park that's just another thing you convict someone.

Why no laws that wyandotte cards I think we have got to those people because.

-- -- to the mansion section of the depends on Fridays in the Wall Street Journal and you wrote this article for the -- thank -- -- to be attending -- -- --

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