Where this might have inpact in the Hamptons is with the “stretched” investor. The stretched investor is the one who is borrowing 110% on properties in hopes of flipping and dipping into equity in a short period of time. Real estate investing is a cottage industry for many folks out here. It’s how many people make their living. Tighter lender restsrictions and slower appreciation are having an effect on certain segments.
See the WSJ article below:
Regulators Tighten Rules
For Subprime-Lending By Damian Paletta