I have been focused on condo conversions for a few months now.
Are they really affordable?
Do they represent a viable alternative for a primary home buyer?
The concept of converting a rental property into condominiums is not new. It could make sense for all parties, the financing bank, the rental properties owner, the new homeowner.
There was a period in the 80's (remember the Resolution Trust?)
when it was a great affordable housing alternative. And it was a product of the Real Estate crisis.
Today, condo conversions are have become again a very popular alternative.
The effects? From the tenants point of view?
Read what the Orlando Business Journal says about what's going on in that area.
"The shortage, the research firm says, has allowed the vacancy rate to fall to 4.2 percent and pushed the average rent in Central Florida up to $828 per month.
"The apartment supply will continue to diminish in 2006 as the conversion trend persists," says Kelly Reddecliff, apartment analyst for Real Data. "This will allow the occupancy rate to remain above 95 percent, and it could even reach 97 percent in the coming year."
Natalie Green, assistant manager at Silver Oaks Apartments on North Powers Drive in Orlando, says her one- and two-bedroom apartment community has held steady at 95 percent or higher occupancy for months.
With one-bedroom rentals ranging from $651 to $701 per month and two-bedroom rentals from $765 to $830 per month, the apartment complex never has a tough time filling vacancies.
"It's tougher and tougher for people to find an apartment for rent," Green says. "A lot of apartment communities are converting to condos all around us, and we are feeling the effects here at Silver Oaks."
Please visit my website:
http://www.condo-southflorida.com
Comments about real estate, economy, and issues that affect my job as a Realtor.
Lately, of great importance is the display of the most important
PRE-CONSTRUCTION PROJECTS IN SOUTH FLORIDA.
My name is Henry B. Nathan
I am a realtor at United Realty Group.
My phone # is 954-296-6741
3 comments:
Hi Henry,
I read that Real Estate prices are not expected to drop, even though many have considered the real estate bubble to have burst in South Florida. Is this just wishful thinking?
Real Estate bubble did not burst, at least for the time being.
There is softness in the market and that's alright since business is gradually returning to a normal behaviour after these red-hot years. But prices are holding firm. There are some areas, though, that merit some consideration. Some investors are taking a closer look at where they put their money, and it might have forced some speculators or "flippers" to give a more rational look at the real value of their investments.
In any case, the main causes of the Florida real estate boom are still here for the long term, (this is my personal belief) and they are the purchasing of second homes, the awareness of real estate as a tangible investment with a long term solidity and the scarcity of land in the best locations. The constant increase of Florida's population, under the influx of European and South American immigration and tourism, as well as the baby-boomer phenomenum will continue to weigh on the real estate market.
Henry B. Nathan
You can reach me at:
hbnathan@bellsouth.net
More information on my website:
http://www.condo-southflorida.com
12:55 PM
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