Ever heard of a condo reversion? Some developers are finding it the only answer..and you the consumer might just win for once!
If you were part of the real estate industry in the last 5 years, you no doubt heard the word condo conversion thrown around a ton. It is the process of taking apartments or 'income producing" properties and turning them into "for sale" condos. Developers have been putting some loot in their pockets for years with this process.
How about October 2008? Condo conversions are dead people! So apply the law of physics to this one and you have "Condo Reversions." This is the process of taking what was to be "for sale' units and turning them back into rentals. And why not? That large pool of first time homebuyers that used to buy....they now rent! That large pool of people that open their eyes to the media feeding frenzy, well they are too scared to buy....they now rent!
Developers that paid too much for the land as the market tanked are forced to either sit on the project, sell it as an apartment building for 60 cents on the dollar or turn it into a cash flow property until the market turns.
The condo reversion is phenomenon mostly felt in California, Arizona, Florida, and Nevada. I bet if you checked some of the finished projects in your hometown you will find some of the units rented or a couple of "so called" lease to owns.
Who wins this game? The Denver real estate consumer. You might be able to rent a place that you could have never lived in before for cheap. If you have no plans on buying, call a realtor that works with developers and see if they can't strike a deal for you.
How about October 2008? Condo conversions are dead people! So apply the law of physics to this one and you have "Condo Reversions." This is the process of taking what was to be "for sale' units and turning them back into rentals. And why not? That large pool of first time homebuyers that used to buy....they now rent! That large pool of people that open their eyes to the media feeding frenzy, well they are too scared to buy....they now rent!
Developers that paid too much for the land as the market tanked are forced to either sit on the project, sell it as an apartment building for 60 cents on the dollar or turn it into a cash flow property until the market turns.
The condo reversion is phenomenon mostly felt in California, Arizona, Florida, and Nevada. I bet if you checked some of the finished projects in your hometown you will find some of the units rented or a couple of "so called" lease to owns.
Who wins this game? The Denver real estate consumer. You might be able to rent a place that you could have never lived in before for cheap. If you have no plans on buying, call a realtor that works with developers and see if they can't strike a deal for you.
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