THE NEXT "HOT" TREND IN RESIDENTIAL REAL ESTATE: CONDO CONVERSIONS
April 20, 2010
While banks are reportedly expecting more foreclosures over the next 12-16 months, property values are expected to stagnate even more. A recent trend that I am seeing in the real estate market is with apartment buildings. Owners of these properties want to sell but they are not getting the return they expected and most have lost 20-50% of their value.
One option is converting them to condos. An (8) unit apartment building may be worth $300K in today’s low market, a conversion can reap $100K-$150K per unit and buyers will be more ready to afford in that price range, especially new graduates just starting out in their careers or downsizers.
Average rental rates range between $1,100 & $1,500/mo in Chicago and West Suburbs why would someone rent when owning a condo would cost about the same or less?
Investors: On a $300K apartment investment, $15K per unit in upgrades/building and sale of $120K/per unit a possible gross profit would be $540K!
In today’s Buyer’s market, it’s all about “affordability" and for Investors, this is a "win, win"!
It's ALREADY happening in Greenwich Village New York!
Christine Moscinski is a Broker Associate/Local Market Expert and member of the "House Hunters Team" at Gobber Real Living (formerly Gobber GMAC Real Estate) Serving Chicago and Western Suburbs including: Brookfield, La Grange, La Grange Park, Westchester, Berwyn, Downers Grove, Darien, Elmhurst, Oak Park and more!
Christine assists Investors and Rehabbers, call her to get more information at (708)369-8094
If you are looking for your next home or condo? Call (708)369-8094, you'll be glad you did!
More information can be found on her website at http://www.eHouseHuntOnline.com