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02-12-2007, 02:34 PM #1
Fixer Upper
- Join Date
- Nov 2006
- Posts
- 30
Apartment Conversions.....Trend
In Boide, Idaho there is a trend to converting apartments into Condos. Most of the nation is going away from this, but Boise is an exception because there are affordable median home prices and job growth. There is a high demand for new condo projects and apartment conversions. This offers people an affordable purchase at $170,000 to $270,000 as opposed to the new condos which are starting downtown at $350,000. This is a market that should not be overlooked.
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02-12-2007, 03:47 PM #2
Condominium
- Join Date
- Jan 2007
- Location
- Palm Beach Florida
- Posts
- 225
Conversions
Wow, I felt like I just went through a time warp. Some new concept has just hit the market! These things call "Condo Conversions"
Just kidding around, not meant to be disrespectful.
Conversions are very popular in high cost of living areas with fewer affordable homes but the problem here in Florida is the conversion pricing is outpacing Single Family Homes in price per sqft.
Every developer who had access to some capital purchased anything and every apartment complex they could when the market here was HOT. Now developers are stuck with inventory they overpaid for, interest payments, and fewer buyers. Not a good scenario. Many of the projects are going back to rentals.
It is really hard for investors to get these properties to cashflow and appreciation is very low or non existant right now. The only way developers are making it investor friendly is to price it high, and offer 2 or 3 years leaseback. This gives the buyer some stability for 2 or 3 years.
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