Attention all investors -- the condo conversion trend is becoming bigger than ever. If investors want to get in on a great way to rent or sell properties for a good turnover, this is one potential avenue. Though the hype has faded, over a decade ago, investors were looking for any old apartment building to turn into condos. Because the cost of houses was on the rise, these affordable options allowed buyers to have lower interest rates and they followed lax underwriting criteria. When the financial crisis struck, it seemed to target the housing market. Those who were once investing in this field pulled out causing an even bigger problem. Basically, the condo industry collapsed. This collapse caused bankruptcies, as developers had a hard time finding buyers for their posh new units.
Fast forward nearly ten years and the housing market is once again on the upswing. People are looking for ways to live inexpensively and with less space. Look on the internet and see the tiny houses that people are attempting to live in. Downsizing seems to be a way of life and cutting out the unnecessary space is saving people thousands of dollars each year. This is where the condos are rejuvenated. Condo complexes are basically apartments that have a great deal more amenities and allow people to live without maintenance on the outside, yard work and a plethora of other expenses. From snow removal to landscaping, it is all handled by the management company.
While the smaller living scheme wasn't working a decade ago, it has caused those in the market for a condo to increase. Some condos may be lavish, but most are geared at having all the needs meet and being centrally located. Once again investors are looking at potential buildings and what they can do to renovate them into stunning condos. There is the matter of the home owner's association and their monthly fee, but most are reasonably and even cover water and trash in most cases. The east coast is where a great deal of this activity is focusing, primarily because of the overcrowded cities and the desires to live closer to downtown where there is less space.
Those who invest with a condo flip can see up to a 20% return on their original investment. Local real estate title and closing companies can help with the conversion. They can help the owners turn the sole title of the overall structure into several separate ones for all the units inside. These conversions give landlords who own run down and older buildings a way to get out from under their heap of debt. They can convert the buildings themselves, or they can sell them to a condo developer and make money quickly. By looking for a diamond in the rough, investors are finding there is big money to be made once again in the condo market.
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