Posted on 08/24/2007 7:33:27 PM PDT by BurbankKarl
My wife has a friend who put 45,000 down on a San Diego condo that she is now going to lose. I'd be tempted to swoop in and buy out her contract for 40 cents on the dollar, but I fear the project will never get built.
-ccm
I only know certain parts of stuff.
One is something like a hotondo or condotel. Half the units, more or less, in the project are hotel rooms the others are sold as condos with hotel services. Owners of the condo units use the management services to rent out their unit as a hotel suite, complete with services, while they are absent. Something like the latest takeoff on time share units, but rental revenue minus overhead goes to individual owners. I understand anecdotally that, if the owner is absent, the income may or may not cover the mortgage payment. Profit is another deal.
Several large highrise condo projects have gone belly-up the last couple of years here. Bankruptcy usually leaves depositors at the bottom of the creditors' list.
Can't say how many are speculators, but Las Vegas has no problem building giant casino hotels with 5,000+ rooms and separate residential highrises (towers, condotels).
yitbos
So he went out and got several wealthy investors in town to "buy" a bunch of units up front, with the understanding that they'd be bought back once the financing package was finalized.
I'm thinking of putting in a bid on one of these units for about 50% of the listed prices.
Atypical construction loan requires 20% down. Developers require the deposits to cover this. Depending on the size of the developer depends on the request deposit. I have heard anywhere from $5,000 to $20,000.
Condos and Townhomes are niche market properties. Keeping from over saturation is important on those type of properties. If developers overbuilt then it is the cities fault for allowing to many projects of that type to occur. At least around here in DFW the cities will monitor rental properties and condo/townhome percentages to help decide on project approvals.
“WHAT? It does NOT take 2-3 years to build a Condo....this is pure bull.....”
It sure does when the condo is a high rise.
Just how long do you think it takes to put up a 50-story building? Many of these south Florida condos are high-rises. My building in downtown Chicago took five years from pre-sale to occupancy.
We are not losing condos, we are gaining apartments. ;-)
I remember this happening years ago on Perdido Key, in Florida. The condos that had been abandoned by their builders, were picked up after that dive, and finished a couple of years later. As of just a couple of years ago, they were selling for about 5 times what folks paid for them for back then. Not too bad an investment, I must say. I just wish we could have afforded one back then!
I can tell you first hand that many of these complexes are half occupancy and far, far less in many cases.
They are building a new condo complex on the corner of 441 and Broward Blvd with units from 250K up. This is right next to one of the worst neighborhoods in SoFlo North of Miami. 250K is what an entire neighborhood yields here in a year of welfare checks. We regularly find spent bullets and casings in the area (I have to go there from time to time.)
I can't even imagine what the builders were thinking when they decided to construct them.
A few months ago, I heard that 15,000 French Jews had moved to Miami to get away from Muslim antisemitism.They were working to relax refugee limits. They can buy the condos. Lots of rich Venezuelans are in Miami, too, but my daughter says they already had their apartments, because they wisely keep their money in the US.
Yes, you’re correct.....I forgot about CONDO HIGHRISES.....yech.....like living in an apartment.
There were a whole lot of condos that were salvaged after the Northridge Earthquake, jacked up, added some more wood, and paint....and were put on the market. They were going for $99,000 in Sherman Oaks.....and now for $400k ten years later.
I probably could have bought one, but my dad owned one and saw how much destruction occured. The water main pouring through the living room ceiling was the kicker....
LOL! I can see how that would be a real deal breaker!
"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus
"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus
They're going to need them...
I’m on my 4th one of those.....LOL. And, yes, I get LOTS of exercise on our stairs.
All of us rats that live in “beige boxes in the sky” are going to forgive you for that inhospitable remark. We kind of like where we live. No grass to mow, no trees to fall on our power supplies. Walk to work. Hmm. Now I remember why I live in one.
Sorry....I’m from the COUNTRY.....transitioning to 2 story condo’s has been hard enough.....I lived like a “rat” on the 8th floor of a “beige box in the sky” in Vancouver, BC for a year......walking everywhere was great, but as for everything else.....NO THANKS. I need some DIRT!
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