Never question the creativity of the real estate developer.
Close to 20 years ago, two of my best buddies and I decided to pool our funds after school and get an gold coast condos of our own.
The three of us were barely able to pay for a three bedroom apartment which was about a decade old at the time. We paid about $500/mo. in rent. To this day, I am not certain how we can afford that apartment.
The apartment was a ditch. The floor, the kitchen and, particularly, the baths were so bad, my dad walked in 1 day with a horrified look of disgust on his face, and refused to remain. But that was what my friends and I called home.
Today, almost 30 years later I'm doing loans for people buying units in that exact same apartment complex. Nowadays, it is a condo conversion!!
The whole complex was remodeled, and the components are going for almost $175,000 a unit.
You all know about condominium conversions and how amazingly hot they're in the market. Low-interest rates have driven new home sales through the roof and condos are no exception.
First time home buyers are flocking to become in almost any way they can. This has really crippled the flat company and is driving the largest condominium conversion boom in 20 years.
More than 12,000 apartment units in Las Vegas are now mapped for condominium conversions. Condo developers are paying a premium to acquire and change old apartment complexes into condos and they're doing so all across the nation, notably Las Vegas and South Florida.
The developers typically hunt for apartment-to-condo conversions in desired places where they won't directly compete with cheap entry- level homes.