A great number of condo conversions now going up for sale -- do you realize how to spend money on condo conversions? Are condo investments still money-making? Just how long will the trend continue? Which one would you pick?
In case you realize that you are asking these questions, rest assured this post is devoted to you...
First thing's first...
As professional investors, we truly need to know what's causing this boom. As the property costs continue to rise developers/investors are finding that it is a lot more lucrative to sell the apartment complex as condominiums that are individual instead of holding on and letting it or selling it as one apartment complex.
I would like to give an example to illustrate a point to you. Consider a 112 unit apartment complex I lately analyzed. About $2,000 annual net operating income per unit. was created by this complex If it were to sell as an apartment complex you could get it under. per unit or $8,288,000 $75,000 You're considering an easy $13 MILLION DOLLARS however, If you sell this complex as individual condominiums. I would like to ask you a question. Can you not sell it as condominiums in the event the conversion price amounts worked in the event that you possessed this apartment complex? Of course!
Are condominiums still money-making?
The solution to this question lies just in conversion or the condo job you are looking at, along with in assessing and comprehending the marketplace tendency. Let us lay the basis before I give you the essential areas to assess a bargain just like a pro.
Without understanding your exit strategy never buy an Hundred Palms Residences EC
condo. You've got to cater to your prospective ending buyers. In many places, a condo conversion will appeal mostly to youthful first-time home buyers and retirees planning to downsize. What exactly does this mean to you? Just this: does the marketplace you are looking in possess growing and a substantial demographic of these customers?